Houston SMBs Face Growing Cybersecurity Crisis: VikingCloud’s 2025 Threat Report Reveals Alarming Gaps

  Executive Summary

Small and medium-sized businesses (SMBs) are the backbone of our economy, creating two-thirds of net new jobs annually. Yet beneath this economic engine lies significant danger that threatens both their bottom lines and their customers’ data security. According to VikingCloud’s recent survey of over 200 North American SMB owners, a staggering 1 in 3 SMBs experienced a cyberattack in the past year, while 71% don’t believe their current cyber defenses can withstand today’s threats.

The 2025 SMB Threat Report reveals growing awareness among business owners about cybersecurity’s importance for profitability and growth. However, these businesses report significant vulnerabilities and resource shortages that effectively paint targets on their physical and online operations.

While the challenges are substantial, viable solutions exist. VikingCloud’s data indicates that SMBs strategically implementing advanced technologies like artificial intelligence (AI) position themselves better for growth and resilience in today’s threat environment. With appropriate tools, personnel, and approaches, SMBs can strengthen their defenses against online attacks for 2025 and beyond.

  Cybersecurity: A Business Imperative

As risks continue to rise, cybersecurity has emerged as one of the top three areas most likely to negatively impact SMBs in 2025, comparable to economic and financial concerns. According to the report, the top five business concerns for SMBs are:

1. Inflation and rising costs (67%)
2. Cybersecurity attacks, data breaches, ransomware attacks, etc. (48%)
3. Recession and reduced consumer spending (46%)
4. Interest rate changes (35%)
5. Supply chain disruptions (30%)

As cyber threats grow more sophisticated, SMB owners must recognize that robust cybersecurity isn’t just an IT issue — it’s a core business imperative. While many understand the risks, SMBs are still falling short on preparedness.

SMBs operate with tight margins, making every disruption potentially devastating. VikingCloud’s data shows a successful cyberattack could put nearly 1 in 5 SMBs out of business entirely.

  The Gap Between Self-Awareness and True Cyber Risk

While 60% of SMBs recognize they’re the most likely target for cybercriminals, many still underestimate their actual risk. This may stem from an incomplete picture: 1 in 3 are working with outdated cybersecurity technology, and 20% don’t have any cybersecurity technology at all.

Self-awareness appears strong — 80% of SMBs acknowledge having cybersecurity vulnerabilities — yet many struggle with implementing basic improvements. SMBs report simple mistakes that increase their vulnerability.

For example, despite over 80% of hacking-related breaches leveraging stolen and/or weak passwords, 23% of businesses use either pet names, number series, or family members’ names to make passwords easy to remember.

Additional vulnerabilities include:

• 22% don’t have cybersecurity measures for internet-connected devices like mobile phones
• 18% don’t require regular software updates
• 17% don’t train their team on cybersecurity best practices
• 16% never back up their data
• 14% don’t require multi-factor authentication for staff

These weak defenses have real consequences. Over the past 12 months, SMBs faced:

1. Wi-Fi or network disruptions (53%)
2. Website downtime (45%)
3. Phishing texts or emails (48%)—with 18% of employees vulnerable to these attacks
4. Point-of-sale software downtime (33%)
5. Fraudulent credit card activity (31%)

  Growing Threats: Lack of Resources & Personnel

Increased awareness of cyber risk is the first step toward change, but with such significant vulnerabilities, SMBs must devote more resources and personnel to build resilience. SMB owners typically juggle multiple roles—from sales and operations to marketing and human resources—and most lack the time and expertise needed to manage today’s cybersecurity threats.

A concerning 74% of SMB owners self-manage their cybersecurity or rely on untrained family members or friends. Only 15% have hired internal IT staff or partnered with a Managed Security Service Provider (MSSP) with the expertise to build robust defenses.

Nearly a quarter (23%) of SMB owners admit they don’t understand their own cybersecurity risks. Even more concerning, 26% acknowledge that whoever manages their cybersecurity (often themselves) lacks adequate training. While some hesitate to invest in external cybersecurity expertise, the reality is that a cyberattack’s cost far exceeds prevention as criminals become more advanced.

Previous VikingCloud research uncovered persistent workforce challenges affecting SMB security. Nearly 20% of companies reported lacking qualified talent as a key challenge to overcoming cyberattacks. Yet only 10% increased cyber hiring in the past 12 months—even as attack frequency and severity skyrocketed.

  The Evolving Threat Environment: More Sophisticated, More Dangerous

Cyberattacks against SMBs have evolved beyond simple network disruptions and phishing scams. SMBs increasingly face sophisticated attacks that are harder to detect and stop. Worse yet, SMBs are twice as likely to miss sophisticated attacks, like deepfakes, compared to obvious disruptions like network downtime. This will only become more problematic—and costly—as cybercriminals increasingly leverage AI to advance their methods.

In the past year alone, VikingCloud research revealed:

• 24% of SMBs were hit with malware
• 19% experienced a denial-of-service attack
• 19% faced a deepfake scheme attempting to access sensitive business accounts
• 14% experienced a ransomware attack

Only 14% of SMBs admit cybercriminals are more advanced than their current defenses, but the true number is likely much higher as many sophisticated attacks go undetected. This gap will only widen as AI becomes more readily available to cybercriminals, rendering traditional security measures increasingly ineffective.

  High Stakes: Going Out of Business

The ramifications of an SMB cyberattack can be crippling:

• 55% of SMBs would go out of business with $50,000 or less in financial impact from a cyberattack
• For 32%, it would take less than $10,000 or less than a day of downtime

The financial fallout extends beyond the initial incident, triggering a cascade of negative consequences:

• Lost Revenue: Business downtime and operational disruptions (55%) lead directly to lost sales (22%)
• Damaged Reputation: Loss of customers (36%) erodes future revenue streams
• Legal and Regulatory Costs: Lawsuits from affected customers or partners (12%) and fines for PCI noncompliance (11%) add further financial strain

  Solution in Sight: AI as a Lever for Resilience

Cybersecurity is a crucial investment in business continuity and survival. Technology, including artificial intelligence (AI), can play a vital role in closing SMBs’ critical security gaps.

65% of SMBs report cybersecurity as the #1 business function that could be managed more effectively with AI. This ranks ahead of sales and marketing (41%), customer service (32%), human resources (27%), and finance and accounting (25%).

While many SMBs have basic security tools like real-time threat monitoring (47%), network scanning (47%), antivirus software (50%), and firewalls (44%) in place, they often lack the advanced defenses needed to combat today’s sophisticated attacks. Critical areas like penetration testing (18%), dark web monitoring (22%), and endpoint security (29%) are often neglected—precisely where AI can make a significant difference.

AI can streamline defenses to provide broader protection, helping strained teams overcome resource and expertise gaps and monitor their businesses 24/7. SMB leaders believe AI will be most useful in strengthening cyber defense by:

• Identifying cybersecurity threats before they impact business operations (55%)
• Offering real-time threat response recommendations (49%)
• Identifying phishing emails and texts (49%)
• Providing automated software update recommendations (36%)
• Providing secure password options (26%)

When used effectively, AI becomes more than just a tool for SMBs—it becomes a competitive advantage.

  Hardened Cybersecurity: The Differentiator that Fuels SMB Growth

As SMBs invest in technology to meet current market needs, cybersecurity will become a key competitive differentiator to spur growth. Business owners list the following reasons they are investing in cybersecurity tech in 2025:

• Protect customers’ sensitive data (55%)
• Help the business safely grow and scale (52%)
• Protect the digital environment (48%)
• Gain a competitive edge (24%)

Cybersecurity is about more than just avoiding risk. It’s about unlocking new opportunities and building a foundation for unbreakable success in the digital age.

  A Call to SMBs: Leverage Cybersecurity as Your Differentiator

VikingCloud’s 2025 SMB Threat Report offers several important takeaways for SMB owners looking to elevate their cybersecurity posture:

1. Stop Treating Cybersecurity as an Afterthought – Many SMBs attempt to handle cybersecurity on their own, often without a clear strategy or dedicated resources. But treating it as an afterthought leaves businesses vulnerable. Cybersecurity must be a priority, embedded into daily operations and long-term planning.
2. Know Your Risks Before They Cost You – Basic awareness of rising cyber threats isn’t enough. SMBs must take action by assessing vulnerabilities, implementing protective measures, and allocating budget to proactively bolster their defenses. The cost of not investing in cybersecurity is far greater than the cost of prevention.
3. Outsource Complex Issues to Experts – Managed Security Service Providers (MSSP) offer flexible payment options, vetted cyber expertise, and advanced technology to SMBs without the time and resources to develop an internal program.
4. Adopt AI Tools Before It’s Too Late – AI-driven security solutions can detect vulnerabilities, respond to threats in real-time, and automate critical security processes – helping SMBs overcome resource constraints and stay ahead of cybercriminals.

The future of SMB cybersecurity hinges on embracing innovative solutions alongside the right people who can turn vulnerability into a strategic advantage. It’s time to leverage cybersecurity as your competitive differentiator.

 How CinchOps Can Help Secure Your Business

With cybersecurity threats multiplying and SMBs particularly vulnerable, having the right protection partner is crucial. CinchOps offers comprehensive security solutions specifically designed for small and medium-sized businesses that may lack internal expertise or resources.

CinchOps provides an integrated approach to cybersecurity that addresses the key vulnerabilities identified in VikingCloud’s report:

Comprehensive Protection Against Modern Threats CinchOps’ advanced threat detection system uses AI-powered monitoring to identify and neutralize sophisticated attacks before they impact your operations. This includes protection against the rising threats of malware, ransomware, and deepfake schemes that are increasingly targeting SMBs.

Expert Management & Support Unlike the 74% of SMBs that self-manage their cybersecurity or rely on untrained personnel, CinchOps gives you access to security experts who stay current with evolving threats. This addresses the critical personnel gap that leaves many businesses vulnerable.

Cost-Effective Solutions With 55% of SMBs at risk of closing after just $50,000 in cyber damage, CinchOps offers scalable security packages that provide enterprise-level protection at SMB-friendly price points. This makes robust cybersecurity accessible without breaking your budget.

AI-Enhanced Security Tools CinchOps leverages artificial intelligence for threat detection, real-time response, and automated security processes—exactly the technologies SMBs identified as most valuable. These tools provide 24/7 protection that scales with your business needs.

Security as a Business Enabler Beyond just protection, CinchOps positions cybersecurity as a competitive differentiator that supports growth. Their solutions help you protect customer data, safely scale operations, and demonstrate security credibility that builds customer trust.

Discover more about our enterprise-grade and business protecting cybersecurity services on our Cybersecurity page.

By partnering with CinchOps, you transform cybersecurity from a potential business liability into a strategic asset. Their team works with you to implement the four key recommendations from VikingCloud’s report: prioritizing cybersecurity, understanding your specific risks, leveraging expert resources, and adopting advanced AI tools.

Don’t wait until after an attack to strengthen your defenses. Contact CinchOps today to schedule a comprehensive security assessment and discover how their tailored solutions can protect your business while supporting your growth objectives.

This blog post is based on findings from VikingCloud’s December 2024 online, quantitative survey of 208 small business owners in North America managed by an independent market research agency. Report release March 25, 2025.

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