Small and medium-sized enterprises (SMEs) are the backbone of India’s economy. They’re the local shops, the homegrown tech startups, and the manufacturers that keep industries running. In fact, MSMEs contribute nearly 30% of India’s GDP.
But here’s the problem—while they focus on growth, innovation, and customer satisfaction, cybersecurity often takes a backseat. Many SMEs assume that hackers only go after big corporations, but that’s far from the truth. Cybercriminals know that SMEs typically have weaker security, fewer resources, and limited awareness, making them the perfect target.
Are you also an SME looking for solutions to this problem? We’ve got your back. This blog lists the biggest threats faced by SMEs, and, most importantly, affordable ways to strengthen your security.
India Cyber Threat Report 2025: Key takeaways
Cyber threats in India have surged and targeted businesses and individuals alike. According to the latest India Cyber Threat Report 2025, our country witnessed an alarming 369.01 million malware detections across 8.44 million endpoints, underscoring the growing risks in an increasingly digital economy.
| Category | Key findings |
| Detection methods | – 85.44% detected using signature-based methods.- 14.56% identified through behaviour-based analysis, indicating the rise of sophisticated threats. |
| The most common attack methods | – Trojans: 43.38% of total detections.- Infectors: 34.23%.- Other Malware: 22.39%. |
| Rising mobile security threats | – 42% Malware infections.- 32% Potentially Unwanted Programs (PUPs).- 26% Adware, highlighting the monetisation of mobile threats.- Android devices are particularly vulnerable. |
| Cybercrime hotspots | Most affected states:- Telangana- Tamil Nadu- Delhi |
| Most targeted sectors | – Banking, Financial Services, and Insurance (BFSI)- Healthcare- Hospitality |
| Implications for businesses | – Cyber threats are evolving; traditional security methods are not enough.- Businesses must adopt proactive security strategies and modern threat detection.- Regular security audits are essential to prevent breaches. |
The report highlights a worrying trend and traditional defences are not enough to deal with it. Let’s see how we get here.
Why is India a prime target for cybercriminals?
We all know that India has become a hotspot for cybercriminals. But why is the country so vulnerable? Several reasons contribute to these attacks. Let’s go through them.
1. Rapid digital growth, weak security
India’s fast digital expansion—especially in banking, e-commerce, and government services—has outpaced its cybersecurity measures. Many businesses prioritise going digital over securing their networks, leaving them exposed to cyber threats.
2. Large SME sector with low cyber awareness
India’s SME sector generates approximately ₹8.16 lakh crore in production value, accounting for nearly 40% of the country’s industrial output and exports. It is sad to know that most of these lack the resources or awareness to invest in cybersecurity. Outdated systems, weak passwords, and poor training make SMEs easy targets for hackers.
3. A goldmine of personal and financial data
With over 1.4 billion people, India has a vast amount of digital data—banking details, Aadhaar numbers, and healthcare records. Cybercriminals see this as a goldmine for identity theft, phishing scams, and financial fraud.
4. Increase in ransomware & phishing attacks
According to a CyberPeace report, ransomware attacks in India surged by 55% in 2024, with businesses and banks being prime targets. Additionally, phishing scams—especially fraudulent OTP requests, fake job offers, and WhatsApp scams—continue to trick millions into handing over sensitive information.
5. Lack of strict cybersecurity regulations
Although India has introduced laws like the Digital Personal Data Protection Act (DPDPA) 2023, enforcement remains a challenge. Many organisations don’t comply with security best practices, making breaches more common and punishments lenient.
Common cyber threats SMEs face
Cybercriminals know that small businesses often lack strong security measures. Here are some of the most common threats SMEs face:
1. Phishing scams
Ever received an email that looks real but feels a bit off? That’s phishing. Hackers pose as trusted contacts (like banks or vendors) to trick employees into clicking malicious links or sharing passwords. One wrong click and your data could be compromised.
2. Ransomware attacks
Imagine waking up to find all your business files locked—and the only way to regain access is by paying a ransom. That’s ransomware. Cybercriminals encrypt your data and demand payment, often in cryptocurrency, making it almost impossible to track them.
Learn how to recover from ransomware attacks and protect your business with effective cybersecurity strategies in our detailed Ransomware Recovery Guide.
3. Weak network security
An unprotected Wi-Fi network or outdated software is an open invitation for hackers. If your firewall and antivirus software aren’t updated regularly, your systems become easy targets.
4. Insider threats
Not all cyber threats come from outsiders. Employees—whether careless or malicious—can be a major risk. Weak passwords, sharing sensitive information, or even clicking on unverified links can expose your business to cyberattacks. Regular training can help prevent these mistakes.
Understanding the risks is only the first step. The real question is—how can SMEs protect themselves without stretching their budgets? Let’s explore some cost-effective ways to build a strong cybersecurity shield.
Affordable ways for SMEs to stay safe and secure
Cybersecurity doesn’t have to be expensive. Small businesses can strengthen their defences without breaking the bank by focusing on the right strategies and tools. Here’s how:
1. Invest in endpoint protection
Your employees’ devices—laptops, phones, and tablets—are often the weakest link. Endpoint security software can prevent malware, detect suspicious activity, and stop unauthorised access. Some budget-friendly options include:
- Microsoft Defender for Business
- Bitdefender GravityZone
- Avast Business Antivirus
2. Use a firewall for network security
A firewall acts as a first line of defence, blocking unauthorised access to your business network. Many cloud-based firewalls offer affordable subscription plans, such as:
- Fortinet FortiGate
- Sophos XG Firewall
- Cisco Meraki
3. Train employees to spot cyber threats
Most cyberattacks begin with human error—an employee clicking on a phishing link or using a weak password. Regular training can help employees:
- Recognise phishing emails.
- Use strong, unique passwords.
- Avoid downloading suspicious attachments.
Affordable training platforms like KnowBe4 and Cyber Risk Aware offer interactive lessons tailored for SMEs.
4. Enable multi-factor authentication (MFA)
A password alone isn’t enough. Adding an extra layer of security—like an OTP or biometric verification—makes it much harder for hackers to break in. MFA tools such as Google Authenticator, Duo Security, or Microsoft Authenticator are free or low-cost.
5. Backup data regularly
A ransomware attack can lock you out of your data, but regular backups can save your business. Follow the 3-2-1 rule:
- Keep three copies of your data.
- Store them on two different media (e.g., cloud + external drive).
- Keep one copy offsite for disaster recovery.
Cloud backup services like Acronis, Backblaze, and IDrive offer affordable plans for small businesses.
Major cybersecurity breaches in 2024-25
India has witnessed a sharp rise in cyberattacks, data breaches, and scams in 2024, making it one of the most targeted countries globally. Cyberattacks increased by 76% in the first quarter of 2024, exposing critical vulnerabilities across industries.
Here are some of the biggest cyber attacks reported in India:
1. BSNL data breaches
Bharat Sanchar Nigam Ltd (BSNL) suffered two major data breaches within six months.
- June 2024 Breach: A hacker known as “kiber phant0m” claimed access to 278GB of sensitive data, including SIM card details, security keys, and IMSI numbers, raising concerns about SIM cloning and identity theft.
- December 2023 Breach: Another hacker, “Perell,” previously leaked BSNL’s fibre and landline customer data on the dark web.
2. Angel One data leak
Mumbai-based stockbroking firm Angel One suffered a massive data leak when hackers published 7.9 million customers’ data on a hacker forum. The breach exposed stock holdings, profit and loss statements, and private financial details, putting millions of investors at risk.
3. Motilal Oswal cyberattack
Indian brokerage firm Motilal Oswal Financial Services (MOFSL) was attacked by the LockBit ransomware gang, which stole data from over 6 million clients. The leaked data reportedly included names, addresses, contact details, and financial information, posing severe risks for affected individuals.
4. Durex data breach
A breach at Durex India exposed thousands of customers’ names, addresses, contact details, and purchase histories. The leak raised serious privacy concerns, as it revealed highly personal information about individuals’ intimate preferences.
5. Tata Technologies ransomware attack
Tata Technologies suffered a ransomware attack recently, forcing a temporary suspension of IT services. While internal systems were affected, client operations remained unaffected. The company restored its systems and reported the incident to India’s National Stock Exchange.
These real-world breaches prove that no business is immune to cyber threats. While direct cybersecurity solutions are essential, having a strong IT foundation can significantly reduce risks. That’s where Parallel Hop comes in.
How can Parallel Hop aid in keeping you safe from cyberattacks?
While Parallel Hop doesn’t provide direct cybersecurity solutions, our IT infrastructure, cloud services, and software solutions act as a strong foundation for businesses looking to safeguard their digital operations.
Here’s how Parallel Hop strengthens your IT ecosystem:
- Proactive IT management to prevent security risks
- Reliable cloud solutions for data security
- Custom software solutions with built-in security
- IT support to mitigate cyber incidents
- Strategic IT consultancy for long-term security
Stay secure, stay ahead—safeguard your business with Parallel Hop today.
