Starting a small business can be incredibly rewarding. But local business owners need to be aware of the digital threats that can disrupt their best-laid plans. Small and midsize enterprises (SMEs) are under attack by cybercriminals whose efforts are becoming increasingly sophisticated. Keep reading to learn about seven of the most pressing technology threats local businesses face in 2025.
1. Third-Party Plugins
Third-party plugins help power small business websites and customer management tools. But old plugins can give attackers an easy pathway to cause harm and derail supply chains from functioning normally. Consequently, businesses must be clear that they’re working with secure software providers that will maintain current plugins and stay vigilant about suspicious behavior.
2. AI Fraud
Artificial intelligence is an innovative tool, but it also has the power to cause significant damage to local businesses, too. AI-powered deepfake video, for instance, can be used to trick email recipients into clicking on malicious links. Or AI-generated audio can convince individuals to reveal sensitive financial information that puts everyone at risk. Businesses must be proactive about working with employees to make sure they know how to spot a scam. Further, employees should be cautious and go the extra mile to verify someone’s identity for any sensitive transfers.
3. Ransomware Attacks
Ransomware attacks are a threat to small businesses in 2025. And since most small businesses lack robust cybersecurity budgets, even cybercriminals without the most refined skillsets can execute a successful attack. Small businesses should commit to developing an incident response plan and doing regular backups.
4. Insecure LLM (Large Language Model) Integrations
LLMs like ChatGPT have enabled businesses to create content more efficiently, saving time and money. But even the best tools can have drawbacks if they’re used carelessly. Insecure LLMs can be susceptible to misuse, with the potential to share critical information or data. Businesses should pursue LLM security for enterprises to stay secure.
5. Hybrid Work Threats
Yes, hybrid work is appealing for lots of employees. But it comes with some risks. As employees work in public spaces, like coffee shops or libraries, they can compromise company data when using public Wi-Fi. Similarly, some employees may conduct work from personal devices that are not equipped with as many security protections. Businesses should counteract this problem by using secure VPN and implementing endpoint monitoring. Further, they should enact strict access controls to ensure that employees can only access what is necessary for their jobs.
6. Compromised IoT Devices
The Internet of Things (IoT) has revolutionized devices everywhere. If those devices come with default passwords, however, they’re an easy target for network attacks. Businesses can circumvent these issues by inventorying devices and monitoring their use.
7. Cybersecurity Training
With the rise in cybersecurity attacks that are more personalized and believable, employees need to be savvy. Scammers are using AI-generated content and studying behavioral analytics to arrive at scams issued via phone or email that can seem legitimate. To give their companies the best chance of avoiding a major problem, business owners must invest in ongoing cybersecurity training.
Be Prepared
Local businesses can stay ahead of cybersecurity threats by training employees and building a culture of surveillance. Businesses must use layered defenses and stay abreast of the latest trends in cybersecurity threats. When businesses make cybersecurity a priority, they can take control of the digital landscape around them.