The rise of AI in cybersecurity: Why small businesses need to stay vigilant

Managed IT · Oct 7, 2024

Small businesses are now navigating a digital landscape where cybersecurity threats are more sophisticated and relentless than ever before, largely driven by the rise of AI-powered hacking techniques. While AI (artificial intelligence) is empowering organizations across industries, it’s also arming cybercriminals with powerful tools to execute increasingly sophisticated social engineering attacks. For small and medium-sized businesses (SMBs), the implications are particularly alarming.

Here are some key stats that small businesses should consider:

45% of small businesses in Canada experienced a random cyberattack
in the past year
4 out of 5 Canadians say they would take their business elsewhere
if a company failed to protect their data
The financial and operational impact of a data breach can be devastating,
with 60% of small businesses closing down within six months
of a cyberattack

The rising sophistication of cyber threats makes cybersecurity essential to avoid potentially devastating impacts. All organizations need to protect sensitive data, maintain customer trust and ensure business continuity.

To better understand these risks, it’s important to explore how AI is transforming the landscape of social engineering attacks, more effectively exploiting human behaviour to breach security systems. Here, we discuss the various AI-driven techniques hackers are now using to target small businesses.

1. AI-enhanced social engineering: The new face of cybercrime

Social engineering, the art of manipulating individuals into divulging confidential information, has long been a cornerstone of cybercrime. However, the advent of AI has supercharged these tactics, enabling cybercriminals to craft more personalized, convincing and ultimately successful attacks. For SMBs, which often lack the robust cybersecurity defences of larger enterprises, the threat is particularly critical.

Traditionally, social engineering attacks relied on generic

phishing emails

or cold calls. But with AI, attackers can now create highly targeted campaigns that exploit the specific behaviours, preferences and vulnerabilities of individual employees or entire organizations. Using Machine Learning (ML) algorithms, cybercriminals can analyze vast amounts of data, such as social media profiles, publicly available corporate information and even leaked data from previous breaches to craft personalized messages that appear legitimate.

2. Deepfake technology: A growing threat

One of the most troubling developments in AI-driven cybercrime is the use of deepfake technology. Deepfakes use AI to create hyper-realistic audio and video content that can convincingly mimic the appearance and voice of real people. For SMBs, this means that a deepfake could be used to impersonate a CEO, CFO or another key executive, instructing employees to transfer funds, share sensitive information or take other detrimental actions.

Imagine receiving a video call from what appears to be your CEO, instructing you to expedite a wire transfer for an urgent business transaction. The voice, the face and the mannerisms all seem authentic. This is no longer a part of science fiction; it’s a very real and present danger. SMBs, with their often lean IT teams, are particularly vulnerable to such attacks, which can lead to devastating financial losses.

3. AI-powered phishing and ransomware

AI isn’t just enhancing social engineering; it’s also transforming other forms of cyberattacks, like phishing and ransomware. AI algorithms can now generate phishing emails that are virtually indistinguishable from legitimate communications. These emails can adapt in real time, using Natural Language Processing (NLP) to mirror the tone and language of the target’s typical correspondence.

Ransomware attacks, which have surged in recent years, are also becoming more effective with AI. Cybercriminals can deploy AI to scan a company’s network for vulnerabilities, identify critical systems and even determine the maximum ransom a company is likely to pay. For SMBs, which often operate on tight margins, the impact of a ransomware attack can be catastrophic.

The SMB dilemma: High risk and limited resources

Unlike large corporations, most SMBs don’t have dedicated cybersecurity teams or the budget to invest in advanced security technologies. This makes them attractive targets for cybercriminals who see an easier path to success. AI-driven attacks are particularly dangerous for SMBs because they’re designed to bypass traditional security measures. Firewalls, antivirus software and even basic employee training alone may be insufficient to counter the personalized, adaptive nature of AI-powered threats.

Moreover, many SMBs are unaware of the risks or believe that their size makes them less attractive to cybercriminals. This misconception can lead to a false sense of security, leaving them even more exposed. The reality is that cybercriminals view SMBs as low-hanging fruit that are small enough to be vulnerable, but with enough assets to make the effort worthwhile.

Cybersecurity strategies SMBs can implement to protect themselves

A successful cyberattack can lead to crippling financial losses, damage to the company’s reputation and even legal repercussions. For example, if customer data is compromised, a business may face lawsuits or fines, further exacerbating the financial strain. The ability to recover from such an attack is limited, making the importance of proactive cybersecurity measures clear.

The rise of AI-driven cyberattacks is a wake-up call for SMBs to rethink their approach to cybersecurity. Here are five steps businesses can take to protect themselves:

1. Invest in AI-driven security solutions:

Just as cybercriminals are using AI to launch attacks, SMBs can use AI to defend themselves. AI-powered cybersecurity tools can detect anomalies, identify threats and respond to attacks faster than traditional methods.

2. Enhance employee training:

Social engineering attacks often succeed because of human error. Regular,

updated training on the latest threats, including deepfakes and AI-driven phishing

, is essential.

3. Implement multi-factor authentication (MFA):

MFA adds an extra layer of security, making it harder for attackers to gain access to sensitive systems, even if they manage to compromise an employee’s credentials.

4. Regularly update and patch systems:

Ensure that all software, especially security software, is up-to-date with the latest patches. Cybercriminals often exploit known vulnerabilities that haven’t been addressed.

5. Develop a response plan:

In the event of a cyberattack, having a clear, practiced response plan can minimize damage and reduce downtime. This plan should include steps for data recovery, communication and legal considerations.

Partnering with TELUS Business for advanced cybersecurity

TELUS Business can help SMBs safeguard against AI-driven cyber threats by providing comprehensive cybersecurity solutions tailored to their specific needs. With proactive monitoring, advanced threat detection and a dedicated team of experts, TELUS Fully Managed helps enhance cybersecurity around the clock. Our services include security tools that can help identify and mitigate threats in real-time, improve employee training programs to counter social engineering, and deliver strategic guidance to enhance your overall cybersecurity posture. By partnering with TELUS Business, you can focus on growth while knowing your digital assets are more secure against evolving cyber risks.

Connect with a managed IT specialist

today to learn how we can help you take cybersecurity off your to-do list

Vivek Goyal is a product leader with over a decade of experience in Cybersecurity. He shares insights on XDR, MDR, SoC, penetration and vulnerability testing, threat intelligence and secure development, offering practical advice to help businesses succeed.

Authored by: