In this information age, it’s not only large global companies facing a wide array of digital threats; cyberattacks on small businesses are becoming both increasingly prevalent and devastating for entrepreneurs.
With many business owners experiencing financial and reputational consequences as a result of this malicious activity, there is one pressing question on everyone’s lips: Why are cyberattacks on small businesses becoming so commonplace?
In this article, we explore this topic in more detail, identifying the reasons why SMEs are being targeted in this way and discussing the strategies that can be implemented to protect your business at all costs.
The sad reality for SME owners is that the statistics surrounding cyberattacks on Irish organisations are alarming and unsettling in equal measure.
In 2024 alone, a survey conducted among Irish businesses found that more than half of respondents had experienced financial losses due to payment diversion fraud, with 11% in this cohort citing damages of between €1m and €10m.
Fast forward to 2025, and the threat landscape is looking even bleaker.
Findings from a new research report by Gallagher revealed that a staggering 90% of Irish companies have been impacted by cyberattacks in the past five years. Among the top attacks experienced were cyber extortion at 37%, phishing attacks at 31%, followed by man-in-the-middle (MITM) attacks at 23%.
For businesses that rely heavily on cloud computing, there are additional worries. Attacks on cloud-based business infrastructures have increased by 75% in the last year, revealing a pressing need for companies of all sizes to implement more stringent cybersecurity measures.
There are three key reasons why small businesses fall prey to the attacks imposed by cybercriminals:
Small businesses – particularly micro-enterprises with less than 10 employees – tend to be stretched quite thin in financial terms. This leaves little room for an adequate cybersecurity budget, a factor that automatically makes them an easy target for ruthless hackers and scammers.
With limited funds available to invest in this area, companies find themselves unable to implement basic security measures, such as coordinating employee training and acquiring disaster recovery services.
All of this culminates in a weakened infrastructure, which can easily be exploited by attackers.
Over 95% of all companies in Ireland are classified as SMEs. This equates to around 272,500 businesses, all with sensitive data at their disposal.
This data can include customer information, payment details and proprietary business data – all of which is incredibly valuable to cyber criminals seeking lucrative targets.
When you combine valuable data with insufficient employee cybersecurity training, a perfect storm is created. Add to this the fact that upwards of 90% of cyberattacks result from human error, and it is easy to see why the number of these incidents is increasing among small businesses year on year.
Aside from mistakes made by untrained personnel, there is also a common misconception among small business owners that they are too insignificant to be targeted. This false sense of security can often lead to complacency, leaving vulnerabilities unaddressed and systems exposed.
There are a few common types of attacks that seem to be affecting Irish businesses. Let’s explore some of the most predominant culprits in more detail:
A ransomware attack is carried out in an attempt to extort money from a company. It involves an attacker encrypting a business’s data and demanding payment for its release. Such attacks can cripple operations, and without proper backups, recovery becomes challenging.
As one of the most prevalent threats facing SMEs, phishing attacks pose significant problems for business owners. They are carried out by attackers who attempt to persuade employees into clicking on malicious links or revealing sensitive information. If an employee follows through with the request, it can lead to serious data breaches or malware infections.
A malware attack occurs when malicious software infects devices and networks, stealing data, spying on users or damaging systems. Small businesses with less robust security are easy targets for these automated attacks.
A supply chain attack occurs when cyber criminals target an organisation by infiltrating a less secure element in its supply or service chain, such as a vendor, software provider, or contractor, instead of attacking the business directly. Once they have gained access to the system, they use the vendor’s login credentials, APIs or software updates to infiltrate the main business’s network.
There are a number of strategies that can be adopted by Irish organisations to mitigate the threat of cyberattacks.
From coordinating regular employee training sessions to equip teams with the knowledge to recognise and respond to cyber threats, to implementing robust security measures through the use of firewalls and antivirus software, there are multiple ways for Irish SMEs to defend themselves against cyber criminals.
Enlisting the help of a managed IT service provider who specialises in data backup, disaster recovery and business continuity services will empower business owners to achieve all of the above under one roof.
At Arbelos, we understand the unique challenges faced by Irish SMEs. Our IT Security and Compliance services are tailored to provide comprehensive protection, ensuring that your business remains resilient against cyber threats.
We assess vulnerabilities across your network, cloud and devices, providing clear, actionable recommendations without the use of confusing tech jargon. We also identify gaps in GDPR and industry-specific compliance, ensuring your operations meet regulatory requirements.
The cherry on top? Our disaster recovery solutions facilitate business continuity in the face of unforeseen events.
By partnering with us, you’re not just investing in IT services; you’re securing the future of your business. Contact us today to ensure you and your business are sufficiently protected against evolving cyber threats.
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