Worldwide Cyber Threats Surge Against Small Businesses
It is a refrain repeated again and again. The cyber risk small businesses face as cybercriminals increasingly target them needs more attention. Small businesses represent the low-hanging fruit. CyberCube’s H1 2025 Global Threat Briefing highlights that 75% of ransomware cases affected companies with 11 to 1,000 employees. Small businesses and organizations often lack strong cybersecurity. That makes them easy prey. In the first half of 2025, cyber attacks intensified, affecting key sectors globally. These small businesses face growing cyber threats. Whether it is financial firms in the U.S. and Singapore or school districts in Canada and Australia, cybercriminals are at the door and inside as well.
Ransomware and Data Breaches Create Operational Chaos
Hackers now automate attacks using AI, targeting weak links with fast, efficient operations. Even modest ransom demands add up when issued in bulk. In many cases, the aim isn’t just financial; disrupting services is a growing trend.
Education systems like PowerSchool experienced a breach that exposed data on 60 million students. Beyond schools, the healthcare, nonprofit, and banking sectors were also hit hard.
High-Risk Sectors: Education Tops the List
PowerSchool’s breach is just one example. Small educational institutions face the highest cyber risk, something we’ve written about. They typically have limited budgets coupled with the valuable personal data they possess and are prime targets. 56% of organizations in this sector fall into the lowest cybersecurity tiers. These schools often lack updated software and third-party security controls.
Opportunities and Risks in the Financial Sector
Financial institutions vary more in their cyber readiness. Around 65% have above-average security, while 35% remain highly vulnerable. Cyber insurers view this split as a chance to tailor coverage and pricing more accurately.
Cyber aggregation events, large-scale incidents caused by shared technology dependencies, pose a serious risk. A single software breach can disrupt hundreds of institutions.
Why Cyber Brokers and Cyber Insurers Must Step In Now
Small businesses remain underserved by cyber insurance providers. Brokers and underwriters must do more. That means educating clients, improving underwriting practices, and tailoring coverage to specific needs.
Cyber insurance shouldn’t only react to attacks. It should include pre-incident risk scanning and post-incident recovery support. These steps help small businesses protect jobs and sustain supply chains.
Artificial Intelligence: A Double-Edged Sword
AI is not yet dominating cyber threats but it is changing the game. The ability to move quickly is the obvious aspect of the threat: faster scanning for vulnerabilities, easier bypass of authentication systems, and quicker malware deployment.
CyberCube warns that even secure companies may fall victim as attackers scale operations across entire sectors.
Closing the Cyber Protection Gap
The mentality we have encountered among many small businesses can be likened to the mindset of a teenager, “it won’t happen to me.” But cyber risk is no longer a big-business-only issue. Small enterprises represent a major portion of global economic activity, from $10M to $250M in annual revenue. Protecting them strengthens the economy’s resilience.
Brokers must help these businesses understand the cyber risks they face. Reinsurers must ensure the market stays stable by supporting tailored underwriting.
