5 Cybersecurity Challenges Critical for SMBs and MSMEs

In India MSMEs and Small and medium business hold the foundation of the economy. However with emerging technologies, every now and then they face new challenges. Cybersecurity challenges are one of them. Ransomware attacks, phishing, deepfake, etc., from small businesses to customers everyone is affected by these cyber challenges. 

Cybersecurity Awareness among SMBs and MSMEs

Large organizations have resources and firsthand knowledge about cyber threats. Meanwhile, small businesses and MSMEs require awareness related to cybersecurity challenges. There are instances when due to lack of knowledge and resources small and medium businesses face the wrath of cyber attacks.

5 Cybersecurity Challenges prevalent in SMBs and MSMEs

1. Ransomware Attacks - Ransomware attacks have been prevalent in the industry. This is one of the biggest cyber threats where the attacker holds access to crucial information via intrusive malicious software attacks. They use that information for their personal benefit or ask for ransom from the company against access to the information. Small businesses, if not using accurate measures to secure their data, can easily face such kind of situation, which can result in huge losses.

2. Supply Chain Vulnerability - This is another cybersecurity challenge, where attackers target the supply chain as a weaker link. Here, they try to infiltrate not only the organization but also the suppliers and partners of the organization. Extensive vendor risk assessment is required to face this cyber challenge.

3. Phishing Attacks - These are the most common cyber challenges, and there is a rise in awareness regarding these attacks. Yet, with time these attacks have also evolved. An organization can receive personalized mail, with no mistakes, and anyone can trust those emails. It can be from the IT department, management, or the CEO itself. With spear phishing attackers target a particular department by sending an email through a trusted employee's ID. These are some of the example, which requires a keen eye and awareness regarding such cyber attacks.

4. Cloud Security Issues: Most SMBs, MSMEs, and even the bigger organizations rely on cloud computing. It is flexible, and very cost effective, yet securing a cloud environment is a huge cyber challenge. As cloud storage has shared access in businesses, it can lead to a security gap. As businesses rely heavily on cloud storage it is essential to have a proactive approach. Encrypting data, strong privacy control, and regular assessment are required.

5. IoT Security Risks: Internet of Things devices are used widely, they share an interconnected network of smart devices. Securing these IoT devices is also a cybersecurity challenge, as they are vulnerable to cyber-attacks. Each connected device can be targeted to enter the ecosystem and can be infiltrated with malware. These devices are compact and have storage issues, which makes it difficult to protect them against potential attacks.

There are other cyber risks and challenges are also involved. Organizations need to be aware of such cyber risks. SMBs and MSMEs are soft targets.

Mitigating the Cybersecurity Challenges Industry Insights -

“SMBs and MSMEs are increasingly becoming prime targets for cyberattacks due to limited cybersecurity budgets, lack of specialized expertise, and reliance on legacy systems. As they embrace digital transformation, their exposure to risks like ransomware, phishing, and insider threats grows exponentially. However, the challenge lies not just in implementing security solutions but also in fostering a culture of cyber awareness among employees. Adopting Managed Security Services, such as SOC as a Service combined with XDR and Threat Intelligence Capabilities, allows these businesses to access enterprise-grade protection without overextending resources. With proactive monitoring and incident response capabilities, SMBs and MSMEs can strengthen their defences and ensure business continuity in an evolving threat landscape.” - Manish Chasta, CTO, Eventus Security.

Due to their limited budgets and resources, Small and Medium-sized Businesses (SMBs) and Micro, Small, and Medium Enterprises (MSMEs) are subjected to several cybersecurity problems. They don’t have a workforce dedicated to cyber security like a bigger organisation does and instead rely on its personnel or external sources which increases the chances of protection insufficiency. As a result, these groups remain easy prey to cybercriminals who have learned to twist their defensive weakness with threats such as phishing, ransomware and supply chain attacks.

Secondly, operationalizing international standards for security management like GDPR, and PCI-DSS poses a great challenge. The burden of implementing them and the cost of non-compliance can be huge. In addition, SMBs and MSMEs are also usually the last to adopt new technological advancements which renders them susceptible to the changing risks.

In addition to this, because there is a shortage of trained personnel, the risks are increased since most security loopholes are as a result of human coincidence. Especially with the ongoing trend of these business entities using a lot of cloud computing and remote working, protecting their information systems becomes a major challenge. - Atul Luthra, Co-Founder and Principal Consultant, 5Tattva

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