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Cybersecurity for small business: How MFA can prevent devastating cyberattacks

January 08, 2025 • Victoria Savage

Cybersecurity for small business is no longer optional—it’s a critical investment, especially when over 60% of SMBs that experience a cyberattack are forced to close their doors within the next year. As SMBs often have fewer resources and IT know-how, choosing cost effective and highly efficient cybersecurity solutions is of the utmost importance.

That’s why multi-factor authentication (MFA) can be a game changer for SMBs looking to get the most bang for their buck when it comes to cybersecurity purchases.

In this blog post, we’ll explore how implementing MFA can be a quick and simple process that offers strong protection against cyber attacks and financial ruin.

Table of Contents

1. Why SMBs are prime targets for cyber attacks
2. Cybersecurity for small business solutions
3. The role of MFA in preventing cyberattacks
4. Cost vs. benefit analysis of MFA
5. How SMBs can implement MFA

Why SMBs are prime targets for cyberattacks

There is a common misconception that cyber criminals are only interested in attacking large enterprises and organizations. In reality, 61% of SMBs were targeted by cyber attacks in 2021, and 46% of all cyber breaches impact small to medium sized businesses.

But why is this the case? SMBs are an appealing target for cyber criminals for a variety of reasons. Namely:

• SMBs often lack robust cybersecurity practices and procedures.
• SMBs hold data that is valuable to attackers, like customer information and financial records.
• SMBs may have weaker authentication systems, which are easier to attack.

Common cyberattack methods that exploit weak authentication

There are many common and inexpensive ways that malicious actors can gain access to accounts and systems which contain sensitive and confidential information held by SMBs. Some of these methods include:

• Credential theft: Using social engineering or phishing, attackers can steal email and password credentials from employees, and use these to gain unauthorized access.
• Account takeover: With passwords leaked on the dark web, or breaking weak passwords with brute force attacks, attackers can take over legitimate employee accounts without SMBs even noticing.
• Ransomware: Using Ransomware-as-a-Service (RaaS) products, attackers can easily infiltrate and lock down SMBs systems and accounts until ransom payments are made, sometimes to the tune of millions of dollars.
• Insider threats: Poor employee training and cyber hygiene can lead to the use of shared or stolen credentials, which leaves critical accounts open for abuse.

To properly defend against these attack methods, SMBs need to adopt better employee training to recognize phishing and social engineering attacks, proper password policies, and should adopt table-stakes protocols to improve cybersecurity for small business needs, including things such as multi-factor authentication (MFA).

The role of MFA in preventing cyberattacks

A common topic in the discussion about cybersecurity for small business is the usage of multi-factor authentication (MFA). Let’s unpack what MFA is and how it can have an immediate improvement on your cybersecurity posture as an SMB.

What is Multi-factor authentication (MFA)

Multi-factor authentication (MFA) is a method of authentication that requires users to present two or more identity proofs in order to gain access to an account or service. These identity proofs (or, factors) are considered:

• Something you know (like a pin or password)
• Something you have (such as a phone or hardware token)
• Something you are (a biometric factor like a fingerprint)

By requiring more than simple passwords to login to accounts, SMBs can boost their login security with little cost to their organization, or hassle to users.
Some common methods of MFA that SMBs should consider are:

• Authenticator apps: As MFA has become more popular across society, authenticator apps like Google Authenticator or Microsoft Authenticator have become more familiar for users on a daily basis. SMBs can implement the usage of these apps in order to login to company systems and accounts as well.
• Email OTP: Another popular and simple way to require stronger authentication security is for users to receive MFA one-time codes via email. This method is inexpensive for companies as end users often already have a company email address assigned to them.
• Passcode grids: If your SMB is looking for a no-cost, hardware-based MFA method, then look no further than passcode grids. These grids can be easily printed out or saved electronically to a device and are a great option for BYOD-based businesses.
• Bypass codes: Never fear if your users are locked out of their MFA-protected systems as long as you’ve implemented bypass codes. Bypass codes are a great emergency-authentication method that allows users to login securely even when their usual MFA methods are unavailable.

Real world example of MFA in action

Studies have shown that MFA reduces the risk of account compromise based breaches by 99.9%. What does this mean in the real world?

Let’s take the example of a Connecticut-based law firm, which was hit by an attempted cyber attack in the fall of 2022.

One of their senior partners fell victim to a phishing attack, and gave credential login information to a malicious actor. This breach would have compromised the confidential information of over 30,000 clients, including their names, addresses and social security numbers. The penalties for that breach would have resulted in costs for the law firm of more than $10 million USD.

However, that data breach never came to pass.

Months earlier, the law firm’s Managed Service Provider (MSP) had implemented MFA on all their systems and accounts. The attacker couldn’t gain access to the systems, IT was able to change the employee’s password, and the law firm and their clients were saved.

Cost vs. benefit analysis of MFA

MFA can make or break how your SMB is able to fight off cyber attacks. Some SMBs may still have concerns about the impact that implementing new technology or protocols about critical daily logins could have on their operations.

Let’s discuss some of those concerns as well as a cost-benefit analysis of MFA.

“It’s Too Expensive”

SMBs operate on smaller budgets than enterprise businesses, and often have to justify each new individual cost. It’s fair for SMBs to wonder if MFA is really worth the cost.

Firstly, it’s important to say that there are many MFA solutions out there which are affordable for SMBs and can be worked into IT budgets early on in the process in a cost-effective way.

More importantly, however, it’s critical for SMB leaders to understand that the choice may not be between cybersecurity and no cybersecurity. More likely, it’s a choice between cybersecurity costs and financial ruin. Recall the statistic that we began with: 60% of SMBs hit by cyber attacks will go under within the next year. With this in mind, the cost of critical cybersecurity tools like MFA is more than justifiable.

“It’s Too Complicated for My Team”

Many SMBs wonder if adding new tools, especially into something as critical as logins, will be too difficult for regular users to understand.

The good news is that with so many authentication methods on offer, it’s likely that you’ll be able to find one or multiple that work for whatever knowledge level your end users are at.

It’s a good idea to work with your teams to determine their level of understanding about authentication, introduce a slow-rollout implementation, and provide additional training if employees need help. In time, all new procedures become normalized.

“It Will Slow Us Down”

Another common concern is that introducing more steps to the authentication process will slow users down and impact productivity. This concern is fair, but reflects an outdated view of what MFA tools have to offer.

Modern authentication methods such as Single Sign-On (SSO), passwordless, and one-tap authentication options can even be faster than the traditional email-plus-password credential combination.

Finding an MFA solution that takes care to offer a good user experience will further reduce the impact on user productivity slowdowns.

How SMBs can implement MFA quickly and effectively

Below is a quick step-by-step guide for how SMBs can easily implement MFA in their environment.

• Step 1: Identify critical systems to protect.
• Step 2: Determine which MFA methods will work for your users.
• Step 3: Train employees on MFA usage
• Step 4: Roll out MFA in phases to ensure smooth adoption and iron out issues.

Consider some further tips in order to have a successful MFA roll out:

• Start with high-risk accounts.
• Use tools that integrate seamlessly with existing systems.
• Monitor and adjust based on employee feedback.

For a full guide on how to assess and implement MFA at your organization, check out our blog series on MFA Assessments.

Conclusion: Protecting your business’s future with MFA

Cyberattacks can have devastating consequences for small and medium-sized businesses, often leading to financial losses, damaged reputations, and even closure. With over 60% of SMBs shutting down after a cyberattack, the stakes couldn’t be higher. That’s why cybersecurity for small business needs is a critical conversation that IT professionals at SMBs everywhere must start having.

Multi-factor authentication (MFA) offers a cost-effective and powerful defense, safeguarding your business by preventing unauthorized access and reducing the risk of credential theft, account takeovers, and ransomware attacks. More than just an expense, MFA is a proactive investment in your business’s long-term survival and success.

Don’t wait until it’s too late—start securing your business with MFA today with a free trial of LoginTC.

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