Cyber threats are crippling small businesses – here's how we can fight back

Cyber fraud is rising, putting nearly one in four small European businesses at risk. As Mastercard’s European Cyber Resilience Centre marks one year, a new study highlights the urgent need for stronger security.

Michele Centemero, EVP Services Europe, Mastercard, and Tulsi Narayan, EVP Commercial and New Payment Flows Europe, Mastercard, share more on this topic.

The rising threat of cyber fraud is becoming a significant barrier for small businesses in Europe, with many entrepreneurs increasingly concerned that a cyberattack could bring their operations to a halt. According to a recent industry report on the state of IT for small and medium-sized businesses, the average cost of a cyberattack ranges from EUR 110,000 to EUR 1.14 million per incident. In 2023 alone, nearly 43% of all cyberattacks targeted smaller businesses.

Small businesses are the backbone of the European economy- SMEs make up 99% of all European enterprises, so these statistics are alarming. The number of reported fraud cases against businesses continues to climb, leaving many entrepreneurs vulnerable to increasingly sophisticated criminals. According to Mastercard’s latest study, the highest rates of fraud victimisation are seen in Ireland (38%), Denmark (35%), and France (29%).

This new study, surveying more than 1,800 small business owners in Europe reveals that 1 in 4 European business owners have fallen victim to scammers, with a quarter (25%) of them also fearing their business would not survive such an attack.

It’s not just established business owners who are struggling with these challenges. Young entrepreneurs are particularly anxious about the threat of fraud. Among Gen Z entrepreneurs, 36% worry daily about becoming victims of cybercrime, compared to 27% of Millennials and 25% of Baby Boomers. In fact, 61% of Gen Z entrepreneurs say that fraud concerns are a major barrier to scaling their businesses, highlighting a growing generational divide in cybersecurity awareness.

To address this, Mastercard is collaborating with cybersecurity experts and investing in innovative solutions that make cybersecurity both stronger and more accessible, allowing small businesses owners to concentrate on what matters most –serving their customers.

For example, we’ve customised our flagship RiskRecon vulnerability scanner for small businesses through My Cyber Risk, enabling them to pinpoint, prioritise, and act on cybersecurity threats to their websites or apps. ID Theft Protection, provides monitoring, alerts, and resolution services to help protect against identity theft. Additionally, The Mastercard Trust Center is a platform that helps small business owners access research, resources, and tools to strengthen their cybersecurity efforts.

We’re also bringing scale to cybersecurity through new partnerships. With CyberMonks, we launched a marketplace for businesses of all sizes to easily find and seamlessly implement tailored cybersecurity and risk management solutions.

Small businesses urgently need support. Since 2020, Mastercard has helped more than 50 million small businesses enter the digital economy, but their long-term success depends on trust.

This month, we mark the one-year anniversary of the Mastercard European Cyber Resilience Center (ECRC), a hub for thought leadership in cybersecurity, fostering collaboration between the public and private sectors. Its mission is to not only protect our network, but to also safeguard our customers and consumers, by strengthening public, private and regulatory partnerships.

To achieve a unified defence, the ECRC leverages threat intelligence, advanced analytics, and collaborative efforts, while also actively cooperating with external cyber and law enforcement agencies. The Centre improves the effectiveness of responses during global events, natural disasters, service, and security incidents. It ensures compliance with global privacy regulations, reinforcing Mastercard´s commitment to privacy and security standards.

By joining forces, we can build a more secure environment for small businesses. Security goes beyond protection—it drives growth. The trust it establishes enables small businesses to operate with confidence and thrive without fear.

Boost your defences by ensuring that your devices and software are always up to date. Regular updates often include patches for the latest security vulnerabilities. For small businesses, automating these updates can reduce the risk of a breach and save valuable time.

Strong passwords are essential, but adding multi-factor authentication (MFA) adds an extra layer of protection. Rather than simple passwords, use passphrases that only you would remember. Enable MFA for your accounts whenever possible to ensure hackers can't easily gain access.

Phishing attacks and malware are on the rise, and businesses need to be vigilant. Equip your devices with antivirus software and ad blockers to prevent these threats. Using a VPN adds another layer of protection by encrypting your data. Mastercard’s CyberMonks marketplace provides tailored cybersecurity solutions to prevent these types of attacks and further secure your digital operations.

Data loss can be devastating for small businesses, especially if it results from a cyberattack. Ensure your business data is regularly backed up and stored offsite or in the cloud. This will help you recover swiftly if a breach occurs. The Mastercard Trust Center offers resources on best practices for backup strategies.

Protect your email addresses and domain name from impersonators by using a DMARC (Domain-based Message Authentication, Reporting, and Conformance) tool. This email authentication protocol helps protect domains from unauthorised use, such as email spoofing.  

Safeguard your data and systems from being compromised by understanding the security of your supply chains and third-party risk. Check the cyber risk of external systems that are interlinked with your own using a solution such as My Cyber Risk powered by RiskRecon to help you understand any exposure and act on those risks.

Taking proactive steps now not only helps preserve business continuity but also reinforces customer trust, enabling small businesses to focus on what they do best—serving their customers during this busy holiday season.

About Tulsi Narayan

Tulsi Narayan is the Executive Vice President of the Commercial and New Payment Flow business, in Europe, where she leads growth for market-leading assets and solutions focused on B2B and cross-border transactions. Her team drives innovation in a fast-evolving landscape, offering solutions across commercial cards (including SME, T&E, Purchasing, Fleet, and Virtual), B2B payables and receivables, bill payments, and both domestic and cross-border money movement. Previously, Tulsi led the Europe Security Solutions team, scaling solutions including AI-based fraud tools, Cyber Security, and Scam Fraud. Before joining Mastercard, Tulsi was a strategy consultant with Bain & Co. and Kearney and was a corporate banker at Lloyds Bank managing a portfolio of FTSE 250 customers in the Industrials sector. Tulsi holds an MBA from the Indian Institute of Management, Ahmedabad, and has an undergraduate degree in Electronic Engineering from Mumbai University.

About Michele Centemero

In July 2024, Michele has been appointed as Regional Service Lead (RSL). He is now in charge of Mastercard Services Business in Europe, aimed at integrating the Go-To-Market Approach. He is responsible for all business development, product groups, and customer success within the region, working closely with global counterparts on Consulting, Consumer Acquisition and Engagement, Security Solutions, Business and Marketing Insights, and Open Banking. Michele has been with Mastercard since 2008, covering different important roles. From October 2017 to June 2024, he was the Country Manager of Italy developing and implementing the Mastercard strategy in the country. Prior to that, Michele was Vice President and head of Business Development in Continental Europe for Mastercard Payment Gateway Services (MPGS). With his team he managed the growth of the MPGS business in Western Europe, Italy & Greece, and Central Eastern Europe and High Growth Emerging Markets, helping all the different countries to diversify and grow their ecommerce business and making payments safe, simple, and smart.

About Mastercard

With cyber risks on the rise, small businesses across Europe are seeking practical ways to strengthen their digital defences. In a new piece by Michele Centemero and Tulsi Narayan, Mastercard highlights the growing challenges entrepreneurs face. As Mastercard’s European Cyber Resilience Centre marks its first anniversary, a new study reveals an urgent need for stronger security measures—underscoring Mastercard’s commitment to supporting small businesses with tools, insights, and collaborative cybersecurity solutions.