The Hidden Costs of Cheap Cybersecurity

“You get what you pay for—especially in cybersecurity.”

Many small and midsize businesses (SMBs) assume cyberattacks are a problem for large corporations, believing they’re too small to be targeted. But the reality is that cybercriminals specifically go after SMBs because they often lack strong security measures. Unfortunately, when businesses try to cut costs on cybersecurity, they frequently end up paying a much higher price.

Why Small Businesses Are Prime Cybercrime Targets

Cybercriminals know that smaller companies tend to have weaker security defenses than enterprises. Many SMBs rely on outdated systems, fail to enforce security policies, or assume their data isn’t valuable enough to be stolen. But statistics tell a different story:

  • 43% of cyberattacks target small businesses, according to a Verizon Data Breach Report.
  • 60% of small businesses close within six months of a cyberattack, as reported by the National Cyber Security Alliance.
  • The average cost of a data breach for small businesses is $200,000, a sum that can be devastating for an SMB.

With threats increasing yearly, it’s more important than ever for SMBs to take cybersecurity seriously.

The True Cost of Cutting Corners on Cybersecurity

Many business owners see cybersecurity as an optional expense rather than a necessary investment. This leads to poor decisions, such as using free or outdated security software, ignoring software updates, or failing to train employees on cybersecurity best practices. Unfortunately, these shortcuts can lead to disastrous outcomes.

1. Ransomware Attacks Can Paralyze a Business

A small law firm believed basic antivirus software was enough to protect their systems. They never implemented a backup strategy or an incident response plan. One day, their entire network was encrypted by a ransomware attack, and hackers demanded $50,000 in Bitcoin to restore their files. With no backups, they had no choice but to pay the ransom—only to discover much of their data was still lost. The incident severely damaged their reputation, and they lost several high-profile clients.

2. Data Breaches Lead to Fines and Lawsuits

A healthcare provider stored patient records on an unsecured cloud system, assuming their small size meant they weren’t a target. But when hackers exploited weak access controls, patient data was stolen and leaked online. As a result, the provider faced HIPAA violations, lawsuits, and a hefty fine. The business not only suffered financial losses but also lost patient trust, causing a drop in appointments and revenue.

3. Operational Downtime Can Be More Expensive Than the Breach Itself

A retail company relying on outdated point-of-sale (POS) software was hit with a malware attack that shut down their system for three days. Every minute offline meant lost revenue, frustrated customers, and additional emergency IT expenses. The total financial loss far exceeded what it would have cost to upgrade their security infrastructure in the first place.

These are just a few examples, but they highlight a crucial point: the financial damage from a cyberattack often exceeds the cost of investing in proper security from the start.

Affordable Cybersecurity Strategies for SMBs

The good news is that protecting your business doesn’t have to be prohibitively expensive. A strong cybersecurity strategy can be cost-effective when approached correctly. Here’s how SMBs can improve security without breaking the bank:

1. Implement Multi-Layered Security

No single security solution is enough. A strong cybersecurity strategy includes firewalls, endpoint protection, email filtering, and network monitoring to detect threats before they cause harm.

2. Use Strong Authentication and Access Controls

Weak passwords and excessive user permissions are common security weaknesses. Using multi-factor authentication (MFA) and the principle of least privilege (POLP) helps prevent unauthorized access.

3. Regularly Update and Patch Software

Many cyberattacks exploit vulnerabilities in outdated software. Keeping operating systems, applications, and firmware up to date significantly reduces the risk of attacks.

4. Back Up Data and Have a Disaster Recovery Plan

A solid backup and disaster recovery plan ensures that, even in the worst-case scenario, your business can restore operations quickly. Regularly test backups to ensure they are functional and protected from ransomware.

5. Train Employees on Cybersecurity Best Practices

Most cyberattacks start with human error, such as clicking on phishing emails or using weak passwords. Regular cybersecurity awareness training helps employees recognize threats before they cause harm.

6. Invest in Professional Security Services

Many SMBs lack the internal expertise to manage cybersecurity effectively. Managed security services (like those offered by an MSP) provide continuous monitoring, vulnerability assessments, and incident response at a fraction of the cost of hiring a full-time security team.

Cybersecurity: An Investment, Not an Expense

It’s easy to see cybersecurity as just another cost, especially for small businesses operating on tight budgets. But the reality is that cybersecurity is an investment in your company’s future. A well-protected business avoids costly breaches, maintains customer trust, and ensures long-term stability.

The worst time to think about cybersecurity is after an attack has happened. Being proactive is always more cost-effective than dealing with the fallout of a cyber incident.

Have you seen a company suffer because they tried to cut corners on security? What do you think is the biggest mistake SMBs make when it comes to cybersecurity? Let’s discuss in the comments.

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Let’s Talk!

Protecting your business from cyber threats doesn’t have to be complicated or expensive, but it does require the right strategy. At Bacon Bytes Technologies, we specialize in helping small businesses secure their data, prevent cyberattacks, and stay compliant with industry regulations. Call us today at 520-222-7353 for a free cybersecurity assessment or click HERE and find out how we can strengthen your security posture before a breach happens. Your business’s protection starts with a conversation—let’s talk!