Protecting your company and your clients' data is a priority for business owners.
Even if you prioritize protecting your clients' data, you could still be vulnerable to an attack.
What you'll learn:
- Why should I protect my company and my clients' data?
- What is the average cost of a data breach?
- How are phishing attacks related to data breaches?
- Where do most data breaches take place?
- What steps can I take to protect my data?
As a business owner, protecting your company and your clients’ data is a huge concern. With data breaches on the rise, it’s clear that hackers are constantly on the lookout for opportunities to steal sensitive information. On the flip side, consumers, eager to avoid data breaches, are becoming more selective about who they trust with their personal information and business in general.
Even if you prioritize protecting your clients’ data, you could you still be vulnerable to an attack. Keeping an eye on the latest data privacy news and statistics can help you identify ways to protect yourself and your customers. Even if you don’t have the security budget of a Fortune 500 company, there are plenty of steps you can take to secure your organization’s data.
Nine crucial data privacy stats for small businesses
1. 60% of security breaches involved a human element
(Verizon 2025 Data Breach Investigation Report)
Most of these breaches involve credential abuse, an exploitation of vulnerabilities, and employees falling for phishing or pretexting attacks, sometimes in the form of business email compromises. The takeaway for business owners should be that having a strong cybersecurity awareness program for your staff is critical. In addition, be aware of your vulnerabilities and secure them with multi-factor authentication.
2. 46% of small/medium-sized businesses experienced a cyberattack
(Mastercard)
A Mastercard survey of more than 5,000 small and medium-sized business owners across four continents showed that 46% have experienced a cyberattack. No matter your business size, you should have a cybersecurity plan in place so you can continue operations. Nearly one in five who suffered an attack then filed for bankruptcy or closed their business.
3. The average cost of a data breach is $4.4 million USD
(IBM Cost of a Data Breach Report 2025)
The average cost of a data breach is $4.4 million, down 9% from last year. However, the use of AI in security is helping to save money when data breaches happen.
4. Eight out of 10 organizations are likely to have at least one employee fall victim to a phishing attempt
(Cybersecurity & Infrastructure Security Agency)
This assessment showed that more people are vulnerable to phishing attacks than you might think. Not only did eight out of 10 organizations have at least one individual fall victim to a phishing attempt, but one out of 10 phishing emails had a user interact with a malicious link. In fact, within 10 minutes of receiving a malicious email, 84% of employees took the bait. They either interacted with a spoofed link or attachment or replied with sensitive information. For business owners, this means phishing awareness should be a key part of your cybersecurity program.
5. In 2024, over $2.3 billion dollars were lost to cryptocurrency scams, a number that continues to rise.
(CryptoSlate)
With cryptocurrency's rise in popularity, there have been an increasing number of investment scams in recent years, which have caused real financial damage to those affected. Business owners should stay alert to this kind of scam, especially if they deal in cryptocurrency.
6. A fifth of software has a severe security flaw
(Government Technology)
According to recent reports, 19% of software scanned in the past year revealed “high or critical” level security flaws, with older software displaying more issues than newer software. Business owners should be aware of this issue and use software that is regularly updated with security patches.
7. The share of breaches involving data stored solely on premises grew from 2024
(IBM Cost of a Data Breach Report 2025)
While it's still incredibly important to ensure the security of your technology and online systems, this statistic reminds us that data stored on a business's premises is still at risk of a breach. Don't forget to take the right security measures for physical information stored at your business location.
If you haven't already, implement a record retention policy. Be sure you're practicing the right safety measures for your physical files, and require frequent password changes for employee devices.
8. Ransomware use in data breaches has grown 37% since 2024
(Verizon Data Breach Investigations Report 2025)
Ransomware is increasingly used in data breaches and is targeting small organizations. Business owners should remember to update software on all devices to prevent ransomware attacks.
9. 97% of organizations reported an AI-related security incident
(IBM Cost of a Data Breach Report 2025)
IBM reports that AI is outpacing security and governance, meaning AI systems are more likely to be breached. If your business is using data in AI systems, be sure it is taking the right steps and protocols to secure it. Visit BBB's AI HQ for more tips for businesses.
Protect your business and customers
Read more about protecting your business from cyber threats in BBB's cybersecurity HQ and check out these online security resources for your business. Learn more about ID theft and how to protect yourself.
BBB is committed to helping businesses and consumers stay safe from potential cyber threats. You can report any suspicious activities to the BBB Scam Tracker and learn more about the different types of common scams on BBB.org Scam Tips.
Stay up to date on the latest small business news and security threats by checking out the BBB business news feed today!