Key Cybersecurity Risks for MSMEs and Effective Protection Strategies

Introduction

In the bustling landscape of the Indian economy, Micro, Small, and Medium Enterprises (MSMEs) are the undisputed engine of growth, contributing around 30% to the nation's GDP and employing over 110 million people**. Enterprises are no longer simply curious about the digital shift in the digital landscape; they are committed to leveraging it fully.

While this has undoubtedly led to unprecedented business growth, it has also opened up an assortment of problems, As these businesses increasingly embrace digitalization to enhance efficiency and reach, they also step into a digital world fraught with unseen dangers. Cybersecurity is no longer a luxury; it's a fundamental necessity for the survival and growth of every MSME. i.e., increasing cybersecurity threats and data breaches.

Let us explore the key cybersecurity risks that MSMEs face, effective protection strategies they can adopt, and other crucial information that will help MSMEs to enhance cybersecurity for their business.

Why Cybersecurity is Critical for Businesses

MSMEs are often susceptible to cybersecurity risks, as they may not always be equipped with the right resources, technology, or robust security measures to safeguard their sensitive data.

Many MSME owners operate under the dangerous misconception that they are "too small to be a target." In reality, cybercriminals often view smaller businesses as softer targets precisely because they tend to have fewer security resources. The consequences of a single cyberattack can be devastating:

• Ransomware Attacks:

  India has seen a drastic increase in ransomware attacks, with a study by Economic Times BFSI showing that 70% of Indian firms were targeted by a ransomware attack in the past 3 years and 81% of organisations are concerned about being potentially targeted with a ransomware attack. Source: https://bfsi.economictimes.indiatimes.com 
  
  Ransomware is malware that can encrypt your critical data and make it inaccessible to you until you pay a ransom for its release. It can bring your business operations to a standstill, leading to significant downtime. If your enterprise does not possess a backup of the necessary data, refusing to pay the ransom can result in permanent data loss. It not only financially burdens an enterprise but also puts them at risk of customer data leaks that can lead to legal issues and business disruption.Streamline Customer Support

• DDoS Attacks (Distributed Denial of Service):

  A DDoS attack is when an enterprise's server is overwhelmed with excessive traffic, which causes slowdowns or complete shutdowns. A DDoS attack can render a business website offline to legitimate users for days, which in turn leads to loss of sales and customers. It also makes an enterprise susceptible to data loss or increased server cost due to bandwidth consumption.

The Alarming DDoS Attack Statistics for 2025: A Data Driven Deep Dive

The latest data reveals a threat landscape where DDoS attacks are not just increasing but are accelerating at an alarming rate in terms of frequency, volume, and sophistication.

Explosive Growth: The first quarter of 2025 saw an unprecedented surge in attack volume. Anti DDOS Solution provider mitigated 20.5 million DDoS attacks, a staggering 358% year over year increase. This represents a massive acceleration from the 50% year over year growth observed in Q1 2024, indicating that attack methodologies and accessibility are scaling rapidly.

Hyper Volumetric Onslaughts: Record breaking attacks are no longer anomalies; they are the new norm. In mid May 2025, Anti DDOS solution provider blocked a 7.3 Tbps attack, just weeks after mitigating a 6.5 Tbps attack. Google also reported stopping a 6.3 Tbps attack targeting one of its customers protected by Project Shield. These hyper volumetric events, once rare, are now a daily occurrence, with Cloudflare blocking an average of 8 attacks per day exceeding 1 Tbps or 1 billion packets per second (Bpps) in Q1 2025.

The Rise of Ransom DDoS (RDDoS): Extortion has become a primary driver. In the fourth quarter of 2024, ~12% of customers targeted by DDoS attacks reported receiving a ransom note or threat, marking a 78% increase from the previous quarter.

• Phishing and Social engineering attacks

  Phishing remains the single most common entry point for cyberattacks in India, accounting for 18% of all data breaches. These attacks involve deceptive emails, text messages, or fake websites designed to trick employees into revealing sensitive information like passwords, OTPs, or business data.

   In 2024, a data breach at consumer electronics brand boAt exposed the personal information of 7.5 million customers. The data was leaked and sold on the dark web, reportedly originating from a compromised Shopify vendor login—a classic example of how a single credential theft can have a massive impact. For an MSME, a successful phishing attack can lead to Business Email Compromise (BEC), where attackers authorize fraudulent wire transfers, resulting in immediate and often unrecoverable financial loss.

  MSMEs, with a small team of IT experts and possible lack of awareness, often fall prey to phishing attacks. Phishing can lead to credential theft, supply chain attacks (through compromised vendor communication) and financial fraud.

• Insider Threats

  Employees can pose a threat because of malicious intent or unintentional negligence, such as inadvertently clicking on phishing links. This can lead to the leaking of trade secrets and sensitive customer data and cause legal repercussions.

• Malware and Viruses

  Malware and viruses are common cybersecurity threats that have become rampant in recent years. Infected downloads or malicious websites can infiltrate your systems and collect your data or corrupt files.

• Data Breaches & Supply chain compromise

  A data breach is the unauthorized release of secure information. Increasingly, attackers are targeting MSMEs not just for their own data but as a stepping stone to larger corporations in what are known as supply chain attacks, which now account for 17% of breaches in India.

  The January 2024 data breach of Hathway Cable & Datacom Ltd., which exposed the sensitive information of 41 million customers, was reportedly caused by a vulnerability in their web framework. This highlights how insecure software and third-party services can create massive risks. If your MSME is a vendor for a larger company, a breach at your end could compromise your partner, leading to contractual termination, legal liability, and irreparable damage to your business relationships.

• Weak Passwords and Authentication

  MSMEs can make the mistake of not having a strong password system across all their communication channels. Weak passwords or a lack of multi-factor authentication (MFA) can make it easier for cybercriminals to get access to sensitive information.

• Outdated Software and Unpatched Software (a critical cybersecurity vulnerability for MSMEs)

  MSMEs can lack the resources or the budget to regularly update their software with the latest security updates and patches. The inability or difficulty in regularly updating software with the latest security updates and patches makes them exceptionally susceptible to a wide range of cyber threats.

          • Exploitation of vulnerabilities

          • Increased susceptibility to malware and ransomware

          • Data breaches and loss of sensitive information

          • Compliance violations and legal ramifications

          • Business and operational disruption

  Addressing the risks associated with outdated and unpatched software is not merely a matter of technical maintenance, but a critical imperative for MSMEs to ensure their long-term viability and resilience in the face of evolving cyber threats.

How to Tackle It: Effective Protection Strategies for MSMEs

According to Vi Business ReadyForNext Growth Insights, it was observed that 83% of MSMEs in India recognise cybersecurity as a critical technology focus for the next three years. Additionally, the investment intent of MSMEs in terms of cloud storage, automation and cybersecurity is seeing a surge. The same report suggests that 72% of Indian MSMEs plan to increase their cloud-related spending, showcasing surging confidence in cloud and automation technologies.

To combat cybersecurity risks for MSMEs, a multilayered approach is the best strategy. Here are some effective ways in which you can prevent your MSME from falling prey to cybersecurity threats:

1.      Build Employee Awareness Through Cyber Training

• Engaging Training Courses: 

  Employees are considered the first line of defense, when it comes to cybersecurity threats. Conduct engaging training courses for employees that educate them about common cyber threats like phishing, business email compromise, etc., so that they are always vigilant.

• Refresher Courses:

  Have routine refresher courses about the same to ensure that cybersecurity etiquettes are deeply embedded in their minds.

• Phishing Drills:

  Consider conducting phishing drills to test employee vigilance and to reinforce the importance of cyber safety.

• Foster a Cyber Security Culture:

  Encourage employees to report and flag suspicious cyber activities and foster a culture of cyber security among your employees.

2.      Implement Robust Security

• Endpoint Protection:

  Endpoint security solutions offer holistic security for laptops, smartphones and other devices used by the employees. Invest in antivirus, antimalware and intrusion detection systems that will prevent cyber threats.

• Firewall Protection:

  Ensure that you have a proper firewall built to protect your internal network from foreign threats.

• Multi-Factor Authentication (MFA):

  Poor password management contributes significantly to cyber thefts. Implement MFA for emails, cloud services and network access. This will create an added layer of security for your company’s data, as it will require users to verify their identity in multiple ways before they get login access.

• Have a Strong Data Recovery Plan:

  Regularly back up your data on cloud storage, as it will reduce downtime in case of a ransomware attack.

• Latest Security Updates:

  Ensure that your employees regularly update their systems with the security updates. This will mitigate the risk of data breaches and cyberattacks.

• Use Secure Wi-Fi:

  Encrypt your Wi-Fi network and have a strong and unique password that is hard to hack. Enterprises must consider dividing their network into multiple segments (network segmentation) to isolate critical elements of their network and in turn enhance the overall security of the network.

• Deploy Email and Web Security:

  Prevent access to insecure websites and have an email filtering system in place that prevents spam and suspicious emails from reaching your employees.

3.      Have Strict Policies in Place

• Strict Access Controls:

  Employees should only have access to data and systems needed to perform their key tasks.

• Strong Passwords:

  Encourage employees to have strong and unique passwords to lower the risks of password cracking.

4.      Invest in Managed Security Services

• A Comprehensive Solution:

  MSMEs often lack in-house technical experts. Hence, it is critical that they consider partnering with managed security services that will take care of cybersecurity for their business. Right from 24/7 monitoring and detecting threats to incident response, a managed security service like the one by Vi Business will provide all these comprehensive solutions and more.

• Centralised Management System:

  MSMEs can benefit tremendously from a centralised management system that addresses threats, monitors network performance, allows remote configuration, and provides integrated reporting. Hiring a credible managed security service will free the bandwidth of enterprise owners to focus on building their business while the cyber experts safeguard their data and digital assets.

Conclusion

MSMEs in India are undergoing a positive shift in upgrading their cybersecurity strategies. Some of the key factors that have compelled MSMEs to take this step include the escalating cybercrime landscape, increased digital adoption, impact on business reputation, regular scrutiny from the government and increasing number of accessible and affordable cybersecurity protection solutions.

The digital age brings a sea of opportunities to enterprises, but it also demands that they take proactive measures to safeguard their data. By understanding the threats, implementing effective cybersecurity strategies, and partnering with a comprehensive cybersecurity solution like Vi Business, enterprises can create a resilient and secure digital ecosystem for their business to thrive.

Secure Your Business Data with Vi Secure

Vi Secure is a comprehensive security solution offered by Vi Business that is scalable and flexible, making it an ideal partner for your evolving business. Vi Secure ensures that businesses are solely focusing on scaling and thriving without letting the weight of the growing cybersecurity threats burden them. It is a one-stop solution for enterprises to safeguard their devices, network, and cloud applications.

Our popular security products include Maximum Device Security Solutions, Email Security, Web Security, Cloud Firewall, Managed Security Solutions and Managed DDoS.

Do not leave your business vulnerable. Contact us today to understand how Vi Secure can build robust cybersecurity for your business.