3 Cyber Threats Facing Businesses Today

3 Cyber Threats Facing Businesses Today

By Scott Bader, Chief Information Security Officer

Cyber threats are constantly evolving, but many successful attacks still come down to a few familiar tactics. Understanding how these attacks work can help businesses spot warning signs early, strengthen defenses, and reduce the risk of a costly incident.
Here are three cybersecurity threats every business should be familiar with and discuss with employees.

1. Business Email Compromise (BEC)

Imagine receiving an email that appears to be from your CEO, a trusted vendor, or a longtime customer. The request seems legitimate and urges you to approve a payment. That's exactly what makes Business Email Compromise, or BEC, so effective. The use of AI and deepfakes has made these attacks more convincing and harder to detect.

In a BEC attack, criminals either gain access to a legitimate email account or create a convincing look-alike account to impersonate someone the recipient trusts. Their goal is to get employees to act before verifying the request.

Why It Matters
A successful BEC attack can lead to:

•    Fraudulent wire transfers or ACH payments
•    Exposure of sensitive information
•    System compromise
•    Operational disruption
•    Reputational damage

How to Reduce Risk

•    Verify payment requests, account changes, and other sensitive transactions through a trusted communication channel – Verify Before You Trust
•    Use dual-control approval processes for financial transactions
•    Provide employees ongoing training to recognize social engineering tactics
•    Require MFA authentication for access to critical systems and sensitive data

2. Ransomware Attacks

Ransomware remains one of the most disruptive threats facing businesses today, increasing over 140% in 2025 from 2024. In many cases, it starts with a simple mistake by a single user. For example, an employee clicks a malicious link or opens an infected attachment. Once inside a network, the malware can spread quickly, encrypt files, and bring operations to a halt. Most modern ransomware attacks also involve data theft, adding another layer of risk beyond operational downtime.

Why It Matters
Ransomware incidents can result in:

•    Financial losses
•    Lost productivity and downtime
•    Data exposure
•    Reputational harm
•    Business interruption

How to Reduce Risk

•    Adopt a culture of security and influence employees to slow down and verify – Verify Before You Trust
•    Avoid opening unexpected attachments or unfamiliar links, even from trusted sources
•    Use and maintain reputable antivirus and anti-malware tools
•    Keep systems and software patching up to date
•    Ensure timely system backups and restoration testing
•    Limit administrative privileges and system access to business need

3. Credential Theft

Passwords are often one of the first things cybercriminals target. Credential theft happens when attackers obtain usernames, passwords, authentication codes, or other login information. Once they gain access to an account, they may steal data, move money, or use that account to access additional systems. Many events begin with phishing tactics or fake login pages designed to capture credentials.

Why It Matters

Unauthorized access can lead to:
•    Compromised accounts
•    Fraudulent transactions
•    Data theft
•    System misuse
•    Increased cyber risk

How to Reduce Risk

•    Provide employees with routine education and reminders of cybersecurity risks
•    Require MFA authentication for access to critical systems and sensitive data
•    Monitor account activity regularly – use real-time monitoring tools to detect unusual login activity
•    Limit user access to business needs and verify access periodically
•    Change credentials immediately if compromise is suspected

No business is immune to cyber threats, but preparation and education can reduce the risk of a cyber-attack. The most effective cybersecurity strategies combine technology, employee awareness, and strong internal controls. By verifying unusual requests, keeping systems updated, using MFA, and limiting access to sensitive information, businesses can build multiple layers of protection against today's most common threats.

Cybercriminals will continue to adapt their tactics, but businesses that stay informed and proactive are in a much stronger position to prevent a cyber incident or the impact of a cyber incident it becomes a costly problem.

To learn more about fraud prevention tools and ways to help protect your business accounts, visit the Five Star Bank Security Center.