Small businesses experienced a 46% cyberattack rate in 2025 with incidents occurring every 11 seconds. Average losses reach $120,000 per breach and 60% of companies attacked close within 6 months. This data demonstrates a growing focus among cybercriminals on small businesses as high-value, low-security targets.
From February through September 2025, our research team analyzed cybersecurity incident data from 2,400 small businesses across North America. This report combines data from government agencies, insurance companies, and industry security reports.
Small businesses face increasingly sophisticated cyberattacks, but their security defenses have not kept pace. The following analysis examines key metrics that define the current state of small business cybersecurity.
What You Will Learn
- Current Attack Statistics: Latest data on attack frequency, success rates, and target demographics for small businesses
- Financial Impact Analysis: Direct costs, recovery expenses, and long-term business impact from cyber attacks
- Common Attack Vectors: Detailed statistics on phishing, ransomware, business email compromise, and other primary threat methods
- Business Preparedness Gaps: Data showing gaps in cybersecurity readiness and employee training
- Recovery and Response Metrics: Statistics on response times, business impacts, and recovery success rates
Current Small Business Cyber Attack Statistics
Cybercriminals now target small businesses more than any other type of company. Attackers often target small businesses because they possess valuable data but have weak security. Our analysis below presents the most current data on attack frequency and targeting patterns.
| Metric | Percentage/Frequency | Business Size Breakdown | Geographic Scope |
|---|---|---|---|
| Cyberattacks targeting small businesses | 43% of all attacks | 1-999 employees | Global |
| SMBs with fewer than 1,000 employees attacked | 46% annually | 1-999 employees | North America |
| Attack frequency against small businesses | Every 11 seconds | 1-500 employees | U.S. |
| Small businesses prepared for attacks | 14% adequately prepared | 1-250 employees | U.S. |
| Businesses with a formal cybersecurity policy | 20% have policies | 1-1000 employees | North America |
| SMBs experiencing attacks in the past year | 75% affected | 1-500 employees | U.S. |
Key insights:
- Small businesses are attacked more often than large companies.
- Most small businesses remain unprepared. Only 14% have adequate defenses against advanced threats.
- Attacks happen very frequently. Small companies face multiple threats every hour.
Financial Impact of Cyber Attacks on Small Businesses
The financial destruction from cyberattacks extends far beyond immediate incident response costs. Attacks incur numerous costs, including recovery expenses, lost sales, lost customers, and fines. These costs can shut down businesses. The data below shows why cybersecurity is a critical business investment.
| Impact Type | Average Cost | Recovery Timeframe |
|---|---|---|
| Small business data breach | $120,000 | 3-6 months |
| Ransomware incident | $35,000 | 2-4 weeks |
| Phishing attack recovery | $70,000 | 1-2 months |
| Business email compromise | $50,000 | 3-6 weeks |
| Malware remediation | $25,000 | 1-3 weeks |
| Extended downtime (8-24 hours) | $15,000 per day | Variable |
Key insights:
- Data breaches cost the most. They often cost 3 to 4 times more than annual cybersecurity budgets.
- Ransomware attacks cost less and resolve faster than data breaches. This is because companies have better response plans for ransomware.
- Larger, better-prepared businesses recover 50% faster than smaller, unprepared ones.
Most Common Attack Vectors Targeting SMBs
Knowing how attackers target small businesses helps prioritize security investments. The attack methods below represent the primary pathways through which threat actors compromise small business networks. This data helps companies select the most effective security tools.
| Attack Vector | Success Rate | SMB Targeting Frequency |
|---|---|---|
| Phishing emails | 30% success rate | 3.4 billion daily |
| Ransomware attacks | 51% pay ransom | 20% increase YoY |
| Business email compromise | 85% target SMBs | $2.77 billion losses |
| Credential stuffing | 40% of SMBs affected | 91% use weak passwords |
| Social engineering | 350% higher vs large business | 95% involve human error |
| Malware infections | 92% via email | 358% increase (2024) |
Key insights:
- Email attacks are the most common. Phishing succeeds often because attackers now use AI to make emails more convincing.
- Ransomware attackers target small businesses because they often have inadequate backup systems and are more likely to pay the ransom.
- Humans are the weakest link in security. Social engineering attacks are more successful than technical attacks.
Small Business Cybersecurity Preparedness Gaps
The preparedness statistics reveal why small businesses suffer disproportionate damage from cyberattacks. Small budgets, poor training, and wrong priorities create security gaps that cybercriminals exploit. These gaps are opportunities to improve cybersecurity.
| Security Element | Percentage Lacking | Business Impact |
|---|---|---|
| Cybersecurity training programs | 75% no regular training | 95% attacks succeed via human error |
| Multi-factor authentication | 80% not implemented | 90% reduction in successful attacks |
| Regular vulnerability assessments | 80% never conducted | 57% breaches are preventable with patching |
| Incident response plans | 53% no formal plan | 50% longer recovery times |
| Cyber insurance coverage | 83% uninsured | 64% unfamiliar with coverage |
| Endpoint protection | 55% lack protection | 85% malware prevention improvement |
Key insights:
- Employee training is the most significant gap. Most successful attacks exploit human mistakes that training could prevent.
- Multi-factor authentication provides excellent value. It reduces successful attacks by 90% and is easy to set up.
- Companies without response plans tend to take significantly longer to recover. This often determines if they survive major attacks.
Business Impact and Recovery Statistics
Cyberattacks severely test the ability of small businesses to survive. The speed at which companies respond to attacks determines whether they survive. These statistics show why cybersecurity planning is essential business insurance.
| Recovery Metric | Percentage/Timeframe | Long-term Impact |
|---|---|---|
| Businesses closing within 6 months | 60% shut down | Permanent closure |
| Recovery time exceeding 24 hours | 50% extended recovery | Lost revenue/customers |
| Customer trust rebuilding is required | 80% reputation damage | Ongoing marketing costs |
| Businesses filing bankruptcy post-attack | 19% declare bankruptcy | Complete business failure |
| Revenue loss during recovery | 40% average decrease | 6-12 month impact |
| Repeat customer retention | 55% customer defection | Permanent market share loss |
Key insights:
- The majority of small businesses cannot withstand major cyber incidents with 60% closing permanently within 6 months of significant attacks.
- Recovery goes beyond technical fixes. Companies must also rebuild customer trust and market confidence.
- Financial impacts last for multiple quarters. Even surviving businesses often need 12 to 18 months to recover their revenue fully.
Protecting Your Business Against Cyber Threats
The statistics presented throughout this analysis demonstrate that cybersecurity represents a fundamental issue for the survival of small businesses. With attack rates increasing and threat sophistication advancing, proactive security measures have become crucial for maintaining business continuity, ensuring customer trust, and safeguarding financial stability.
At Total Assure, we recognize the distinct cybersecurity challenges faced by small businesses. Our enterprise-grade security solutions are specifically designed to protect smaller organizations with the same advanced capabilities larger enterprises use to defend against sophisticated threats. We provide comprehensive managed detection and response, compliance support, and incident response services that enable small businesses to operate confidently in today's threat environment.
Ready to protect your business from cyber threats? Contact Total Assure today to learn how our cybersecurity experts can defend your organization with proven, cost-effective security solutions tailored specifically for small businesses.
