More than four in five small businesses experienced a cybercrime in 2025, according to the Identity Theft Resource Center’s Business Impact Report. The nonprofit surveyed 662 owners and executives at companies with 500 or fewer employees, including solopreneurs, about incidents over the previous 12 months.
The findings show that 81 percent of respondents suffered a security breach, a data breach, or both. AI-enabled attacks were identified as a root cause in more than 40 percent of incidents, reflecting a shift towards more technologically advanced external threats.
The financial impact was notable, with 37% of affected businesses reporting losses exceeding $500,000.
To manage these costs, 38.3 percent of small business leaders reported raising prices, this burden functions as an invisible "cyber tax," pushing businesses to raise prices and contributing to inflation. The report also notes declining confidence in cybersecurity preparedness and reduced use of basic security measures, despite growing concern about AI-driven risks.
Notes: This post was drafted with the assistance of AI tools and reviewed, edited, and published by humans.
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The findings show that 81 percent of respondents suffered a security breach, a data breach, or both. AI-enabled attacks were identified as a root cause in more than 40 percent of incidents, reflecting a shift towards more technologically advanced external threats.
The financial impact was notable, with 37% of affected businesses reporting losses exceeding $500,000.
To manage these costs, 38.3 percent of small business leaders reported raising prices, this burden functions as an invisible "cyber tax," pushing businesses to raise prices and contributing to inflation. The report also notes declining confidence in cybersecurity preparedness and reduced use of basic security measures, despite growing concern about AI-driven risks.
Notes: This post was drafted with the assistance of AI tools and reviewed, edited, and published by humans.
Read next: Online shopping makes it harder to make ethical consumption choices, research says
