Blog | CompassMSP

What Is a Cyber Attack? Everything Business Leaders Need to Know

Written by Ryan Benson | Oct 23, 2025 11:04:01 AM

Common Types of Cyber Attacks. More than 2,000 cyberattacks happen each day. While most headlines focus on the big ones, the majority of these incidents happen quietly, affecting everyday businesses.

Big corporations have the resources to defend themselves, but small-to-midsized businesses often don’t. Studies show that many small businesses file for bankruptcy or shut down after a cyber attack.

Fortunately, you can protect your business without blowing past your budget. Let’s break down what a cyber attack is, the most common types, and prevention strategies to keep your company safe.

What is a Cyber Attack?

A cyber attack is when malicious actors gain unauthorized access to computer networks, systems, or devices. Cybercriminals target individuals, businesses, or government agencies, aiming to:

  • Destroy or steal sensitive data
  • Hold data hostage in exchange for returning access
  • Disrupt business operations

Regardless of the goal, the impact on companies is consistent: financial losses and operational downtime.

Use our Cyber Security Calculator to see how a cyber attack could affect your bottom line.

The Stakes are High for Small and Mid-Sized Businesses

Small-to-midsized businesses are especially vulnerable to cyber attacks. With limited resources and lean IT teams, they’re an easy target. Beyond the immediate bills, the hidden costs of cyberattacks cause the most long-term damage. For many, a single incident can determine whether they stay in business.

Common Types of Cyber Attacks

Cyber attacks exploit vulnerabilities in technology or human behavior to bypass security. Here are common threats facing small-to-midsized businesses:

1. Phishing Attacks

Phishing accounts for 41% of all data breaches. These fraudulent messages impersonate trusted sources to trick recipients into clicking malicious links or sharing sensitive information. See how to spot phishing emails.

2. Ransomware Attacks

Ransomware locks you out of systems and holds data hostage. Many victims pay, yet many never get their data back. Healthcare and manufacturing were top targets in 2023.

3. Supply Chain Attacks

Attackers compromise a vendor or supplier, then use that connection to access your network. Supply chain attacks are harder to detect and often cost more to resolve due to multi-party impact.

4. Tech Support Scams

Phone calls, emails, or pop-ups claim your device has a problem, then request remote access. Once inside, attackers can capture passwords, financial data, and more.

5. Insider Threats

Not all attacks come from strangers. Disgruntled insiders or well-meaning employees can expose data. According to the World Economic Forum, 95% of cyber incidents are linked to human error.

6. Malware Attacks

Malware includes viruses, spyware, and Trojans that infiltrate systems to steal data or corrupt files, often by exploiting unpatched vulnerabilities.

7. Distributed Denial-of-Service (DDoS) Attacks

DDoS floods your website or network with traffic from a botnet, knocking services offline and disrupting customers.

Learn more about the under-the-radar cyber threats that could take your business down.

How to Prevent Cyber Threats

Cybercrime costs are projected to hit $1.8 trillion by 2028, making prevention a smart investment. Practical steps include:

1. Train Your Teams

Your employees are your first line of defense. Cybersecurity awareness training helps teams spot phishing, use strong passwords, and handle data safely. Companies with strong training programs saved an average of $1.5 million compared to those with little to no training.

2. Implement Strong Access Controls

Apply least privilege access and require multi-factor authentication to reduce unauthorized access.

3. Keep Your Systems Updated

Establish a process to regularly update software, operating systems, browsers, and apps. Enable automated patches where possible.

4. Back Up Your Data

Follow the 3-2-1 rule:

  • Keep 3 copies of your data
  • Store them on 2 different types of media
  • Keep 1 copy off-site or in the cloud

5. Outsource to Cybersecurity Professionals

A Managed Security Service Provider (MSSP) delivers 24/7 monitoring, detection, and guidance at a fraction of in-house cost. Organizations using managed security cut breach recovery times by 21%.

6. Adopt Advanced Security Practices

  • AI and Automation: AI is changing work, and AI can reduce breach costs by detecting threats in real time.
  • Zero Trust Architecture: Assume no implicit trust. Continuously verify users and devices to reduce risk.
  • Secure Cloud Environments: Use encryption, strong authentication, and configuration baselines.
  • Incident Response Plans: Define roles, runbooks, and communication steps for detection, containment, and recovery.

FAQ: Cyber Attacks and Prevention

Q: Who is most at risk of a cyber attack?

All businesses face risk. Small-to-midsized businesses are particularly vulnerable due to limited resources. Healthcare, manufacturing, and retail are frequent targets.

Q: How much does a cyber attack cost?

Costs vary by incident type and company size. The average breach cost for companies with fewer than 500 employees is $3.31 million. Get an estimate for your organization here.

Q: What is the most common type of cyber attack?

Phishing is the most common and often the entry point to more serious compromises.

Q: How can I tell if my business has been hacked?

Watch for unusual activity, unauthorized access, slow networks, and ransomware messages. Continuous monitoring improves early detection.

Q: Do small businesses need a cybersecurity expert?

In-house teams are ideal, but many small-to-midsized businesses partner with an MSSP for right-sized protection and expertise.

Q: Can insurance help after a cyber attack?

Yes. Cyber insurance can help cover downtime, legal fees, and customer notifications. Prevention is still your best defense.

Cybersecurity Prevention That Doesn't Require an Enterprise Budget

A single cyber attack can take your business down. Your organization deserves enterprise-grade protection, and you can get there without enterprise resources.

CompassMSP helps small-to-midsized businesses with customized strategies, real-time threat detection, and expert guidance to keep operations secure and running smoothly.

Cybercriminals don’t take breaks, and neither do we. Reach out to our cybersecurity team to protect your data and build a strategy that works for you.