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One in Four Small Businesses Was Breached Last Year, and Most of Them Had Security in Place

Screenshot 2026 05 06 at 1.00.02 PM

Proton surveyed 3,000 business and IT leaders across the U.S. and five other countries for its 2026 SMB Cybersecurity Report. The finding that stood out most wasn’t the number of businesses that got hit. It was this: the ones that got breached weren’t ignoring security. They had training programs, recurring audits, and tools already in place.

They still lost.

About 57% of breached businesses reported losses between $10,000 and $100,000. And the average cost of recovering from the attack was roughly equal to what they’d spent trying to prevent it in the first place.

That’s a painful math problem. You pay for protection. You still get hit. Then you pay again to clean it up.

So what went wrong?

According to the report, the pattern was the same across companies: security tools were optional, unevenly enforced, or easy to bypass. Password managers were in place, but employees still shared passwords over email and text. Policies existed, but no one checked whether they were actually followed.

Security becomes a policy document. And policy documents don’t stop attacks.

The human element compounds this. Thirty-nine percent of businesses in the survey reported a cybersecurity incident caused by human error. Not a zero-day exploit. Not a sophisticated nation-state actor. An employee made a mistake because the technology in place wasn’t configured to catch it.

This is the gap most small businesses don’t see: not whether they have security, but whether what they have actually works. A firewall that’s misconfigured. An MFA policy with exceptions nobody cleaned up. A backup that hasn’t been tested in eight months.

The businesses that survived attacks and recovered faster weren’t necessarily spending more. They had a clearer picture of their actual exposure, and they’d fixed the low-hanging vulnerabilities before an attacker found them first.

Knowing where you stand is step one. Our Cyber Liability Scan gives you that picture in about 15 minutes, no technical knowledge required, no commitment attached.

Contact us here: https://www.rstechnology.net/contact-us/