Small to medium businesses (SMBs) tend to think that they’re at a lower risk of facing a cyberattack. That’s not how attackers see it. To them, the smaller the business, the smaller the security budget. But that’s only part of why SMBs need stronger security.

Why cybersecurity matters for SMBs

SMBs aren’t ignoring cybersecurity. According to Proton’s SMB Cybersecurity Report 2026 — a survey of 3,000 business leaders across six markets — 92% have invested in security measures.

Still, one in four still suffered a cyberattack or breach in the past year. 

The gap between investment and protection is largely a human one. SMBs rarely have dedicated security resources, yet handle large amounts of valuable data — a combination that makes them an attractive target. 

When things go wrong, the impact is far-reaching: 

  • 46% of those hit reported data loss
  • 38% operational disruption
  • 30% loss of customer trust.

Formal risk assessments, regular audits, and modern measures like multi-factor authentication and password managers aren’t working because without enforcement, even good tools fail. 

Half of respondents have a password manager in place — but in those same organizations, credentials are still being shared via email (29%), shared documents (28%), messaging apps (23%), and written notes (21%). Having the right tools isn’t enough if they aren’t embedded into how people actually work.

So, what can businesses do to protect themselves?

Essential cybersecurity best practices for SMBs

1. Enforce strong password management 

Poor password management is one of the biggest threats to security at your organization, and might include:

  • Password reuse: Using the same password for multiple accounts means that if hackers steal your password for one account, they can use it to access other business accounts.
  • Unsafe password sharing: Sharing credentials via email, messaging apps, shared documents, in conversation, or in writing leaves you vulnerable to hackers or unauthorized people accessing your accounts.
  • Unrestricted access: Failing to limit access to privileged platforms or documents allows anyone with credentials for a single account to view, modify, or delete sensitive business data they shouldn’t have access to.

A business password manager(fereastră nouă) can help prevent password reuse and enable safe password sharing. However, it’s essential to implement an enterprise password manager rather than rely on browser-based ones. Proton Pass provides you with a centralized admin panel, audit logs, and granular user and group controls, making it easy to add or remove access during onboarding and offboarding, as well as during a cybersecurity event.

Read more: What small businesses still get wrong about password managers

2. Keep software and systems updated

Installing all relevant software updates is critical. SMBs often skip updates due to downtime fears. These updates protect you by patching security vulnerabilities to protect against data breaches, malware, and unauthorized access.

Many SMBs use a centralized automated patch management strategy to manage updates. A single platform handles the detection, testing, deployment, and auditing of software updates across network devices, reducing reliance on manual updates and helping maintain consistency. 

3. Implement multi-factor authentication (MFA)

Multi-factor authentication is one of the best protections available for securing access to your systems and files. The key is to enforce MFA by default — don’t leave it as an optional setting. 

  • Most secure MFA methods: Hardware keys and authenticator apps
  • Moderately secure MFA methods: Biometrics, such as fingerprints or Face ID
  • Least secure MFA methods: Push notifications and text messages

In addition to enforcing MFA, you can ban push notifications and text messages for admin accounts. Use an authenticator app or hardware keys to prevent SIM-swapping attacks, which are rampant against small business owners.

Read more: What is two-factor authentication (2FA)?

4. Secure your network access

If your organization offers remote or hybrid work or requires travel, create a secure connection between your employees and your business network. Employees working from home, or on public Wi-Fi networks in cafes or while traveling can allow attackers to intercept data in transit. A VPN encrypts data in transit, shielding sensitive information from hackers and insider threats.

Proton VPN(fereastră nouă) gives you control of your network and defends your devices from IP tracking and malware.

5. Conduct employee training and security awareness

Technology alone can’t prevent a breach; human error consistently ranks among the main causes of data breaches. Your employees need to recognize social engineering tactics, which often rely on psychological manipulation. It’s advisable to implement regular phishing simulation exercises and security training to foster a security-first culture.

6. Encrypt your data 

Encryption ensures that even if data is stolen, it remains unreadable to attackers. This applies to both data at rest (stored on devices) and data in transit (being sent over the internet).

  • Email encryption: Protect client communications and prevent sensitive information from being intercepted. Proton Mail offers end-to-end encrypted business email(fereastră nouă) solutions that automatically protect your messages.
  • File encryption: Understand which files need to be encrypted and how to encrypt them.

7. Ensure secure cloud storage and collaboration

When choosing a cloud provider, avoid services that scan your data for advertising or AI training purposes. Opt for zero-knowledge cloud storage where only you hold the encryption keys. 

Proton Drive provides end-to-end encrypted cloud storage, so your documents and files remain private. For team collaboration, Proton Docs(fereastră nouă) and Proton Sheets(fereastră nouă) enable your team to work in real time without compromising data security.

Read more: 5 cloud storage security risks and how to avoid them

8. Implement network segmentation and access controls

Don’t let a breach in one area spread to your entire network. Implement network segmentation to limit lateral movement during an attack. Combine this with role-based access control (RBAC) so employees have access only to the data necessary for their roles.

9. Review third-party vendor risk

Your supply chain is only as secure as its weakest link. Attackers often target smaller vendors to gain access to larger partners. Conduct vendor security assessments and require partners to follow the same strict data protection standards that you do.

10. Develop and enforce a BYOD policy

Allowing employees to use personal devices (Bring Your Own Device/BYOD) introduces significant risk if not managed correctly. Personal devices rarely have the same security controls in place as corporate hardware.

Develop a clear BYOD policy that defines security requirements, data access permissions, and compliance regulations. Give your team access to secure tools, such as encrypted email and password managers, on their personal devices to reduce risk.

Read more: BYOD security solutions explained

11. Implement zero-trust principles

Adopt a “never trust, always verify” mindset. Zero trust security treats every access request as untrusted by default, whether it comes from inside or outside your organization. Every request should be authenticated, authorized, and encrypted.

12. Conduct regular vulnerability scanning and security audits

You can’t fix what you don’t know is broken. Schedule regular vulnerability scans to find weak points in your infrastructure before attackers do. Use these findings to prioritize patching and configuration changes.

13. Monitor and log network activity

Continuous monitoring helps detect suspicious activity in real time. Log network traffic and review logs regularly to spot anomalies that could indicate a breach in progress. 

14. Have an incident response plan ready

Many SMBs assume they’ll handle a breach when it happens. But without a plan, a small incident can spiral into days of disruption.

An incident response plan doesn’t need to be complex — start with a one-page document that covers the basics. Run simple “what if” scenarios with your team to identify gaps before a real crisis forces you to find them the hard way. And importantly, review your plan after every incident or test run.

Read more: From vulnerability to resilience: an incident response framework for SMBs

15. Adopt the modern 3-2-1-1-0 backup strategy

The traditional “3-2-1” backup rule (three copies, two media types, one off-site copy) no longer covers every risk. Ransomware attacks can encrypt connected backups alongside your primary files, making recovery much harder. Many organizations now follow the 3-2-1-1-0 approach:

  • 3 copies of your data: 1 primary + 2 backups.
  • 2 different storage media types: For example, local server + external drive.
  • 1 off-site or cloud copy.
  • 1 immutable or air-gapped copy: This is the critical addition — it ensures one backup copy cannot be modified, deleted, or encrypted by ransomware, even if an attacker gains admin access to your network.
  • 0 errors: Regularly test your backups to confirm restoration works flawlessly — a backup you can’t restore is a wasted expense.

Many small businesses rely on cloud sync folders that automatically update files across devices. If ransomware encrypts your files, those encrypted versions can quickly spread to synced devices and backups. To reduce this risk, consider using zero-knowledge cloud storage with version history and retention controls.

Proton Drive includes end-to-end encryption and file version history. If ransomware encrypts local files and those changes sync to the cloud, version history can help restore earlier, unencrypted versions. However, full 3-2-1-1-0 compliance also requires an air-gapped backup or another protected backup isolated from ransomware attacks. 

By implementing these cybersecurity tips, SMBs can significantly reduce their risk profile and protect their reputation and revenue.

Ready to get started? Try a free Proton for Business trial(fereastră nouă) and upgrade your cybersecurity stance today.