464
/
6
Min Read
According to the press release by the PIB, cases of cyberattacks have more than doubled over the past 2 years; the number has increased from 10.3 lakh incidents to over 22.6 lakh incidents by 2024. These types of attacks affect organisations of all sizes; MSMEs are among the most vulnerable targets due to limited security protection and faster digital adoption.
In India, small businesses are actively adopting cloud-based accounting, inventory tools, enabling UPI payments, e-commerce stores and remote collaboration platforms. The MSME sector of India is growing aggressively and the transformation has unlocked the efficiency, scale and access to the national and global markets, especially for the enterprises operating in tier-2 and tier-3 cities.
Previously, cyber threats used to focus mainly on large enterprises and financial institutions; now they are generally targeting MSMEs. And they are becoming a target because the MSME sector is growing aggressively and cybercriminals are making it a target because they are working on an assumption that smaller businesses are easier to breach, have weak cybersecurity systems to respond and are equally valuable in terms of getting access to data.
These vulnerabilities can cause devastating consequences like financial losses, stolen customer data, longer operational downtime, and reputational damage. And these can bring down any MSME; sometimes, they can cause permanent damage. Small businesses rarely have insurance or buffers to recover from critical cyberattacks. And in today’s digital economy, cybersecurity is not just a technical concern; it is a matter of surviving in the business world.
The Cybersecurity Paradox
One of the most dangerous misconceptions among MSME owners is the belief that “we are too small to be a target.” In reality, attackers do not care about the brand size or revenue scale; they care about vulnerability. And these vulnerabilities are the reason for small businesses to become an easy target.
MSMEs generally handle sensitive data like customer personal information, payment details, supplier contacts, invoices, login credentials and proprietary business information. Even a minute dataset can be monetized in underground markets or it can be used for fraud, phishing campaigns, or identity theft. And because of this, many times even a small startup gets into the risk, as being small will make you an easy target.
Why MSMEs Are The Most Attractive Target
A. Weak Cyber Defences
The majority of the Indian MSMEs operate without a proper cybersecurity team. IT responsibilities are generally handled by generalists or external vendors and they mainly focus on uptime and not on security. Outdated software, poor systems, unsecured Wi-Fi networks, and weak access controls are some common problems. And these gaps make an easy for hackers to do phishing, ransomware or credential stuffing attacks.
B. Budget and Resource Constraints
Generally, the investments are focused on growth, marketing, hiring, or expansion rather than cyber defense. Many MSMEs view cybersecurity as a burden rather than a risk mitigation, which leads to underinvestment in tools, training and audits.
C. High-Value Data, Low Protection
Even some general data like customer contact, GST records, invoices and login credentials are important. Cybercriminals can use this information for fraud, social engineering, or resale. In some cases, data gets stored without encryption or proper access controls, which gives them the liberty to easily breach.
D. Supply Chain Vulnerabilities
MSMEs are an integrated part of the supply chains of bigger enterprises, as vendors, service providers or technology partners. Smaller firms are an indirect entry point to breach the bigger ecosystems. And breaching a small firm can compromise bigger MSMEs data at risk.
E. Digital Acceleration Without Security
The rapid adoption of cloud tools, remote job platforms, and connected devices has increased the attack surface for MSMEs. Here, cloud adoption is not an issue; migrating without proper configuration is a problem.
What Happens After A Cyberattack
The real impact of cyberattacks deeply affects organizations. A single ransomware incident can stop operations for days. Unfilled orders, delayed payroll and communication breaks down can bring down the business. Invoices, accounting records and inventory data may become inaccessible overnight.
Entrepreneurs face ransom demands, legal uncertainty and the difficult task of explaining breaches to clients and partners. Trust, often built over years, can break instantly. Suppliers may feel hesitant to continue relationships, and customers may move towards the competitors for safer delivery.
There is also an emotional toll. For founders who have invested personal savings, time and identity into their business a cyberattack feels like a personal loss. Recovery is not just about restoring systems; it is about rebuilding confidence.
Measures for MSMEs in Cyber Defence
Cyber resilience is not about removing the risk entirely; it is about reducing exposure and ensuring rapid recovery.
Basic cybersecurity remains the strongest first line of defence. This includes having strong, unique passwords, enabling multi-factor authentication, keeping systems and software updated and conducting regular employee awareness training. Since many attacks begin with phishing, educating staff is as important as deploying any advanced technology.
Cloud-First Defence Strategy
Cloud-centric security measures have emerged as one of the most effective defensive layers for MSMEs. Cloud security enables multi-layered protection like encryption, identity-based access controls, network segmentation and real-time threat detection, capabilities that are difficult and expensive for individual MSMEs to build independently. Automatic updates and patching significantly reduce the vulnerability windows compared to the legacy on-premise systems.
Centralised visibility allows better monitoring and faster incident response, reducing blind spots common in fragmented IT setups. Additionally, built-in business continuity and disaster recovery mechanisms enable Quicker restoration after an incident, limiting downtime and data loss. In this context, the cloud is not seen as just an IT tool; it becomes a foundational defence system that aligns security with scalability.
Why MSMEs Should Partner With Security Experts
Cybersecurity is a domain where the needs of a professional team are crucial; experimenting by yourself will not be sufficient. Cyber threats evolve constantly, with attackers leveraging the automation system, AI and the global attack infrastructure. Expecting small internal teams to keep pace will not be a rational decision. Partnering with cloud security providers, managed security services or specialised firms allows MSMEs to leverage expertise without bearing full-time costs. This is not about outsourcing responsibility; it is about getting the capability.
Even basic compliance and data protection practices require consistent oversight, audits and updates. Expert partnerships ensure that security does not fall behind growth, enabling MSMEs to focus on innovation, customers and expansion while safeguarding data and uptime.
Why Strategic Imperative Will Define MSME Success
MSMEs are the backbone of India’s economic growth, employment generation, and innovation. As they digitise, their resilience becomes a matter of national importance. Cybersecurity can no longer be treated as a back-office IT concern; it is a strategic business capability. For MSMEs, investing in cybersecurity is not about fear; it is about competitiveness, trust, and continuity. Smart, cloud-enabled security strategies offer a practical path for the future in combining protection, scalability, and affordability.
As India's digital economy expands, the question is no longer whether MSMEs will face cyber threats, but how prepared they will be when they do. Those who view cybersecurity as an enabler rather than a cost will be best positioned to thrive in the long term.
( Author : Mr. Padma Reddy Sama, Co-Founder, BharathCloud )
