Seven Cybersecurity Mistakes That Put Northern Michigan Small Businesses at Risk

A Hiscox survey found that 41% of small businesses were victims of a cyberattack in 2023, with a median cost of $8,300 per incident. For a seasonal retailer on Howard Street or a professional services firm serving the resort communities along Little Traverse Bay, that kind of loss can wipe out a year's margin. And the threat isn't slowing down. The harder truth is that most attacks succeed because of preventable mistakes — not sophisticated hacking. Here are the seven most common, and how to fix them before they cost you.

Are Your Software Updates Actually Running?

Unpatched software — applications and operating systems that haven't received the latest security fixes — is one of the most exploited entry points for attackers. Updates aren't just feature releases; they close known vulnerabilities that hackers actively scan for. Enable automatic updates across every device in your business, and designate someone to verify those updates are completing rather than quietly stalling.

Weak Passwords Are Still an Open Door

If "password123" or a shared login exists anywhere in your operation, you have a problem. Multi-factor authentication (MFA) — a login process that requires a second form of verification beyond a password — is now a baseline expectation, not an IT luxury. CISA recommends that small businesses require MFA for all users, especially those with administrative or remote access, and pair that with a backup solution that automatically and continuously protects critical data. A password manager helps your team keep credentials strong and unique without the sticky-note workaround.

In practice: Start with your email, banking, and cloud storage accounts — those three alone cover most of the highest-value targets in any small business.

Employee Training Is Your First Line of Defense

No firewall stops a phishing email that tricks a trusted employee into handing over credentials. The U.S. Small Business Administration notes that employees and work-related communications are the leading cause of small business data breaches, making staff training and access controls — including MFA — essential first steps. Schedule security training at least twice a year, cover current phishing tactics, and run occasional mock drills. It doesn't require a large IT budget. It requires consistent habits.

What Happens If Your Data Disappears Tomorrow?

Data backup and recovery means maintaining copies of your critical files in a separate, secure location so that a ransomware attack, hardware failure, or accidental deletion doesn't end your business. Many small businesses have backups in theory — but have never tested whether those backups actually restore. Run a restore drill at least quarterly, not just when something breaks. If you can't get your data back in a crisis, the backup doesn't count.

Your Network Has a Front Door — Is It Locked?

An unsecured or poorly configured network lets attackers intercept traffic, access connected devices, and move through your systems quietly. Some organizations have restructured entirely by moving to cloud-hosted services, dramatically reducing their attack surface — in some cases nearly eliminating phishing risks that rely on internal infrastructure. Even without a full migration, the basics matter: use a separate guest network for customers, enable WPA3 encryption, and change your router's default admin credentials today.

Mobile Devices Are Part of Your Attack Surface

Staff checking email on personal phones, using business apps on tablets, or accessing shared drives from home networks — all of that is network exposure. Mobile device management (MDM) tools let you enforce security policies across devices, remotely wipe lost phones, and require screen locks and encryption. If your team works from mobile regularly, this is no longer optional infrastructure.

The Security Audit You Keep Postponing

Most small businesses configure their security once and never revisit it. The FTC recommends that small businesses adopt a structured cyber risk plan using the free NIST Cybersecurity Framework 2.0, which organizes risk management across six areas: Govern, Identify, Protect, Detect, Respond, and Recover. A regular audit — even an informal annual review — catches new vulnerabilities before attackers do, and documents your security posture for insurance or legal purposes if a breach ever occurs.

Protecting Sensitive Files in Daily Operations

Password-protected PDFs are a practical, low-friction way to secure sensitive documents — contracts, financial statements, client records — from unauthorized access. When you need to reorganize that documentation, a free browser-based tool that lets you add pages to a PDF, reorder, rotate, or delete pages makes it easy to maintain clean, protected records without desktop software.

Start with One Gap

In 2024, the FBI reported over $2.7 billion in losses from business email compromise alone — and no business is too small to be a target. For Petoskey Regional Chamber of Commerce members, the PRCC's professional development programming throughout the year is a natural venue for building cybersecurity awareness into your team culture. Workforce development seminars, social media workshops, and training programs give local businesses accessible entry points. You don't have to fix everything at once. Pick one gap from this list, close it this week, and build from there. One improvement — MFA, tested backups, or a staff training session — puts you ahead of most small businesses still running on default settings and optimism.