Mitigating Cybersecurity Threats in Small and Medium Enterprises

Small and medium enterprises (SMEs) face increasing dangers from hackers and malware. Cyberattacks now cost the economy billions of dollars each year and have become one of the most commonly reported forms of fraud.

Sometimes, no matter how prepared you are, a cyberattack can compromise customer data, disrupt operations, and lead to significant financial loss—in addition to damage to an organization’s reputation. That said, being prepared can make the difference between a minor disruption and a major crisis.

Today, we’ll discuss important cybersecurity strategies for SMEs, including the importance of business risk management consulting.

6 Cybersecurity Strategies for SMEs

Cyber-criminals constantly refine their tactics, now leveraging AI tools to create more convincing attacks.

For example, phishing emails—fraudulent messages that trick employees into revealing sensitive information—can be auto-generated by AI to mimic legitimate communications.

It’s a lot to worry about, but the good news is that there are practical steps you can take to mitigate these risks and protect your company.

Here are six of those best practices:

1. Train Your Employees

Human error is often the weakest link in cybersecurity. Employees and work-related communications are a leading cause of small business data breaches, so educating your team is one of the most impactful security measures you can take.

The SBA encourages employers to train their team members to:

Spot phishing emails
Use good Internet browsing practices
Avoid suspicious downloads
Enable authentication tools (strong passwords, Multi-Factor Authentication, etc.)
Protect sensitive vendor and customer information

Regular training refreshers—delivering brief sessions every few months will reinforce good habits and foster a culture of security where everyone plays a part in protecting the business.

Don’t miss this next article, where we discuss legal and PR considerations and brand integrity in the digital age.

2. Enforce Strong Passwords and Multi-Factor Authentication

According to data from LastPass, stolen, weak, or reused passwords cause more than 80% of confirmed breaches. To protect your business, enforce a strong password policy: implement complex, unique passwords and remind your team to update them regularly.

On top of strong passwords, enable multi-factor authentication (MFA) wherever possible.

MFA adds an extra verification step (such as a one-time code from a phone app or a fingerprint scan) beyond just the password, so even if a password is stolen, an attacker still can’t easily access the account.

These two steps—strong passwords and MFA—work together to strengthen your security access and keep cyber intruders out.

3. Keep Software Updated and Use Antivirus Protection

Many cyber attacks exploit known weaknesses in software.

Keeping your systems up to date is one of the simplest yet most powerful defenses.

Make sure your operating systems, applications, and devices install updates and patches promptly— if possible, turn on automatic updates. This closes security holes before cyber-criminals can exploit them.

Equally important is running reputable antivirus software on all computers and servers. These help detect and block malware (viruses, spyware, ransomware, etc.), especially when they’re kept updated with the latest threat definitions.

The Federal Communications Commission (FCC) recommends “keeping clean machines” with the latest security software, web browser, and OS—and setting antivirus programs to scan after each update.

4. Secure Your Network (Firewalls and Wi‑Fi)

Your business network is the gateway to your data, so it needs to be well-defended. Start with a firewall—this can be hardware or software that blocks unauthorized access to your network.

Ensure your operating system’s built-in firewall is enabled, and if employees work from home or remotely, verify that their home networks have firewall protection as well

For wireless networks, use strong encryption (WPA2 or WPA3) and a robust router password. It’s also wise to hide your Wi‑Fi network name so it isn’t openly broadcasting (set your router not to broadcast the SSID).

5. Limit Access and Protect Sensitive Data

Not every employee needs access to all information. Use the security principle of least privilege: each user should only be able to reach the systems and data necessary for their job.

Create separate user accounts for every staff member (no shared logins), and require that each account has a strong password.

Restrict administrative privileges—only trusted IT personnel or key managers should have the ability to install software or change security settings on company devices.

Regularly review who has access to sensitive data and promptly revoke credentials when someone leaves the company or changes roles.

Physical security matters, too. An unlocked office or unattended laptop can lead to a breach just as easily as an online attack.

Keep servers and important computers in secure, access-controlled areas, and encourage employees to lock their screens or shut down their PCs when stepping away

6. Back Up and Secure Your Critical Data

Despite all precautions, you should be prepared in case an attack succeeds or important data is accidentally lost (for example, due to hardware failure or human error).

Regular data backups are your safety net.

The FCC advises businesses to back up all critical data—from financial databases to customer records—at least weekly and to store those backups in a secure offsite location or in the cloud.

Set up automated backups so that this happens on a consistent schedule without relying on someone to remember.

Having reliable backups means that even if ransomware locks up your files or a server crashes, you can restore your information and resume business operations quickly.

The last thing you want is for your backup files to be the target of cyber-attacks because they weren’t safeguarded.

Staying Ahead of the Threats with Risk Management Consulting

Cybersecurity is not a one-time project but an ongoing process—threats are constantly changing, so make a habit of revisiting your security policies and updating your defenses regularly.

Engaging a business risk management consulting service or cybersecurity professional can provide expert guidance in identifying vulnerabilities, addressing compliance requirements, and crafting an incident response plan tailored to your needs.

Contiguglia Law Firm offers business risk management consulting tailored to the needs of small and medium enterprises.

Whether you’re building a security policy from the ground up or strengthening what you already have, our team can help you identify vulnerabilities, implement protections, and reduce your legal exposure.