Top 5 Cybersecurity Mistakes Small Businesses Make (And How to Avoid Them)

In today’s digital world, cybersecurity is no longer just a concern for large corporations.

As defenses become more sophisticated, attackers are also becoming more creative.

They no longer only target tech giants like Apple or Amazon, everyone, including small and medium enterprises (SMEs), is at risk.

In fact, Malaysia recorded 6,512 cybersecurity incidents in 2020 alone, with 4,615 cases reported between January and May. The next target could be you.

In this article, we’ll highlight five commonly overlooked cybersecurity mistakes that could seriously harm your business, and show you how to avoid them.

1. Weak or Reused Passwords

One of the easiest and most common ways hackers breach security is by brute-forcing account passwords using wordlists filled with weak or reused passwords.

Many employees still use simple passwords like “123456” or “password,” and it’s not uncommon for them to reuse the same password across multiple accounts containing sensitive company data.

While this might make passwords easier to remember, it significantly increases the risk to your business.

Once one account is compromised, all other accounts using the same password are also vulnerable.

Additionally, using personal information such as birthdays or names makes passwords even easier to crack.

Hackers often use tools that can test thousands of combinations in seconds.

👉 How to avoid it:

• Do not use the same passwords on all accounts.
• Enforce strong, unique passwords for all users.
• Create a 12-to-14-character passwords that includes uppercase letters, lowercase letters, numbers and symbols.
• Make use of password managers like Bitwarden or 1Password mandatory.

2. Not Using Two-Factor Authentication (2FA)

Relying on passwords alone is no longer sufficient.

Two-factor authentication (2FA) adds an essential layer of security by requiring a second form of verification, typically through an authentication app, email, or QR code.

Without 2FA, attackers who obtain a password can easily gain full access to your systems.

This can result in data breaches, financial losses, and long-term reputational damage.

👉 How to avoid it:

• Enable 2FA on all critical services like email, cloud storage, CMS platforms, and admin portals.
• Choose app-based authentication methods like Google Authenticator or Authy instead of SMS-based codes, which can be intercepted.
• Make 2FA mandatory for all employees, not just administrators as attackers can escalate privileges once inside.

3. Ignoring Software Updates

Postponing or ignoring software updates leaves your business exposed to known vulnerabilities.

Exploits are often made public in the form of Common Vulnerabilities and Exposures (CVEs) before they are patched.

If you’re using outdated software, hackers can easily take advantage of these known flaws.

Cybercriminals actively look for outdated systems. A single unpatched vulnerability can open the door to malware, ransomware, or unauthorised access.

At Exabytes, we offer cloud services tailored for SMEs to help mitigate this risk.

Learn more on Cloud Solutions here.

👉 How to avoid it:

• Enable automatic updates for operating systems, apps, and antivirus tools.
• Designate someone (or an IT partner) to manage and monitor updates.
• Regularly audit your software to ensure it’s up to date and still supported.

4. Lack of Data Backup Strategy

Data is one of your business’s most valuable assets.

Losing it, whether due to hardware failure, ransomware, accidental deletion, or natural disasters can cripple your operations.

Unfortunately, many SMEs either don’t back up their data or rely on inconsistent manual backups.

Without secure and tested backups, recovery can be slow or even impossible.

Worse still, some companies are forced to pay ransoms to retrieve their data, encouraging future attacks.

👉 How to avoid it:

• Use automated backup tools that run daily or weekly.
• Maintain at least two backup locations: one local (external drive, NAS) and one offsite (secure cloud service).
• Test backups regularly to ensure they can be restored when needed.
• Encrypt and restrict access to your backups.

5. No Cybersecurity Training for Staff

Even with the best tools, human error remains one of the biggest cybersecurity risks.

Employees may unknowingly click on phishing links, use unsecured Wi-Fi, or download malicious files.

Unfortunately, many SMEs don’t provide regular cybersecurity training, leaving staff unaware of the risks or how to recognise them.

This is especially dangerous in remote work environments where employees manage their own devices and networks.

👉 How to avoid it:

• Provide practical cybersecurity training at least twice a year.
• Cover essential topics such as phishing awareness, secure browsing, strong password habits, and safe remote work practices.
• Use real-world examples and simulated phishing emails to reinforce learning.
• Foster a culture where employees feel comfortable reporting suspicious activities.

Conclusions

Cybersecurity isn’t just an IT problem, it’s a business-critical issue.

These five common mistakes often go unnoticed, especially in SMEs with limited resources.

The good news?

Fixing them doesn’t require a huge budget, just awareness, consistent practices, and the right tools.

Think of cybersecurity as digital hygiene.

Regular care and attention go a long way toward keeping your systems, data, and customers safe.

Final Thoughts

• (2024). Komunikasi.gov.my. Protecting SME From Cyber Attacks.
• Microsoft. (2024). Create and Use Strong Passwords.
• François Amigorena. (2022, August 4). When Two-Factor Authentication Becomes a Security Requirement, IS Decisions.
• Canada, E. (2020). Cybersecurity for small businesses: Why software updates are essential – Get Cyber Safe.
• The Essential Need for SMEs to Back Up Business Data: An MSP Perspective – TBIG Managed Solutions. (2024, August 6).
• SentinelOne. (2024, September 3). Why Employee Cybersecurity Awareness Training Is Important.