Cyber threats are crippling small businesses – Here's how we can fight back
May 27, 2025 | Waterloo, Belgium | By Michele Centemero, EVP, Services Europe, and Tulsi Narayan, EVP, Commercial and New Payment Flows Europe
The rising threat of cyber fraud is becoming a significant barrier for small businesses in Europe, with many entrepreneurs increasingly concerned that a cyberattack could bring their operations to a halt. According to a recent industry report on the state of IT for small and medium-sized businesses, the average cost of a cyberattack ranges from €110,000 to €1.14 million per incident. In 2023 alone, nearly 43% of all cyberattacks targeted smaller businesses.
Small businesses are the backbone of the European economy- SMEs make up 99% of all European enterprises, so these statistics are alarming. The number of reported fraud cases against businesses continues to climb, leaving many entrepreneurs vulnerable to increasingly sophisticated criminals. According to Mastercard’s latest study, the highest rates of fraud victimization are seen in Ireland (38%), Denmark (35%), and France (29%).
This new study, surveying more than 1,800 small business owners in Europe reveals that 1 in 4 European business owners have fallen victim to scammers, with a quarter (25%) of them also fearing their business would not survive such an attack.
It’s not just established business owners who are struggling with these challenges. Young entrepreneurs are particularly anxious about the threat of fraud. Among Gen Z entrepreneurs, 36% worry daily about becoming victims of cybercrime, compared to 27% of Millennials and 25% of Baby Boomers. In fact, 61% of Gen Z entrepreneurs say that fraud concerns are a major barrier to scaling their businesses, highlighting a growing generational divide in cybersecurity awareness.
To address this, Mastercard is collaborating with cybersecurity experts and investing in innovative solutions that make cybersecurity both stronger and more accessible, allowing small businesses owners to concentrate on what matters most –serving their customers.
For example, we’ve customized our flagship RiskRecon vulnerability scanner for small businesses through My Cyber Risk, enabling them to pinpoint, prioritize and act on cybersecurity threats to their websites or apps. ID Theft Protection, provides monitoring, alerts and resolution services to help protect against identity theft. Additionally, The Mastercard Trust Center is a platform that helps small business owners access research, resources and tools to strengthen their cybersecurity efforts.
We’re also bringing scale to cybersecurity through new partnerships. With CyberMonks, we launched a marketplace for businesses of all sizes to easily find and seamlessly implement tailored cybersecurity and risk management solutions.
Small businesses urgently need support. Since 2020, Mastercard has helped more than 50 million small businesses enter the digital economy, but their long-term success depends on trust.
This month we mark the one-year anniversary of the Mastercard European Cyber Resilience Center (ECRC), a hub for thought leadership in cybersecurity, fostering collaboration between the public and private sectors. Its mission is to not only protect our network, but to also safeguard our customers and consumers, by strengthening public, private and regulatory partnerships.
To achieve a unified defence, the ECRC leverages threat intelligence, advanced analytics, and collaborative efforts, while also actively cooperating with external cyber and law enforcement agencies. The Centre improves the effectiveness of responses during global events, natural disasters, service, and security incidents. It ensures compliance with global privacy regulations, reinforcing Mastercard´s commitment to privacy and security standards.
By joining forces, we can build a more secure environment for small businesses. Security goes beyond protection—it drives growth. The trust it establishes enables small businesses to operate with confidence and thrive without fear.
Here are six strategies to help small businesses to stay safe:
01
Update your devices
Boost your defences by ensuring that your devices and software are always up to date. Regular updates often include patches for the latest security vulnerabilities. For small businesses, automating these updates can reduce the risk of a breach and save valuable time.
02
Implement strong password
Strong passwords are essential, but adding multi-factor authentication (MFA) adds an extra layer of protection. Rather than simple passwords, use passphrases that only you would remember. Enable MFA for your accounts whenever possible to ensure hackers can't easily gain access.
03
Prevent phishing and malware
Phishing attacks and malware are on the rise, and businesses need to be vigilant. Equip your devices with antivirus software and ad blockers to prevent these threats. Using a VPN adds another layer of protection by encrypting your data. Mastercard’s CyberMonks marketplace provides tailored cybersecurity solutions to prevent these types of attacks and further secure your digital operations.
04
Regularly back up your data
Data loss can be devastating for small businesses, especially if it results from a cyberattack. Ensure your business data is regularly backed up and stored offsite or in the cloud. This will help you recover swiftly if a breach occurs. The Mastercard Trust Center offers resources on best practices for backup strategies.
05
Protect your mail and reputation
Protect your email addresses and domain name from impersonators by using a DMARC (Domain-based Message Authentication, Reporting, and Conformance) tool. This email authentication protocol helps protect domains from unauthorized use such as email spoofing.
06
Assess Third-party Risks
Safeguard your data and systems from being compromised by understanding the security of your supply chains and third-party risk. Check the cyber risk of external systems that are interlinked with your own using a solution such as My Cyber Risk powered by RiskRecon to help you understand any exposure and act on those risks.
Taking proactive steps now not only helps preserve business continuity but also reinforces customer trust, enabling small businesses to focus on what they do best—serving their customers during this busy holiday season.
