A federal jury on Tuesday decided that NSO Group must pay Meta-owned WhatsApp WhatsApp approximately $168 million in monetary damages, more than four months after a federal judge ruled that the Israeli company violated U.S. laws by exploiting WhatsApp servers to deploy Pegasus spyware, targeting over 1,400 individuals globally.
WhatsApp originally filed the lawsuit against NSO Group in 2019,

NSO Group Fined $168M for Targeting 1,400 WhatsApp Users With Pegasus Spyware

TM SGNL, a chat app by US-Israeli firm TeleMessage used by Trump officials, halts operations after a breach…

TM SGNL, a chat app by US-Israeli firm TeleMessage used by Trump officials, halts operations after a breach exposed messages and backend data.

A data breach has exposed security flaws and sensitive information in TM SGNL, a chat app developed by the Israeli-US company TeleMessage. The firm is known for providing modified versions of encrypted messaging apps such as Signal, WhatsApp, Telegram, and WeChat, to the US government.

This alleged breach, first reported by 404 Media, involved a hacker gaining access to archived messages, including direct and group chats. As a result, the company has temporarily suspended its operation.

The hack raises serious concerns about the security of communications at the highest levels of the US government, particularly as former National Security Advisor Mike Waltz was recently seen using TM SGNL during a cabinet meeting with President Trump.

This sparked immediate scrutiny since unlike Signal, TM SGNL is not available on public app stores. At the time of writing, TeleMessage’s official website remains online, but all references to the app, its services, and related activity have been removed.

Reportedly, Smarsh, TeleMessage’s corporate owner, is currently rebranding the service as Capture Mobile. However, the Wayback Machine shows the website’s archive pages and installation guide for both iOS and Android devices.

****The Hacker Remains Anonymous****

The hacker, who remains anonymous, claimed to have breached TeleMessage’s backend infrastructure in a mere “15-20 minutes,” highlighting the ease of access. The stolen data includes message contents, contact information of government officials, usernames and passwords for TeleMessage’s backend panel, and indications of client agencies and companies.

The companies include Customs and Border Protection (CBP) and cryptocurrency giant Coinbase. However, it was confirmed that the hacker did not obtain messages from Trump cabinet officials or Waltz himself.

Internal screenshot from the TeleMessage app which the hacker shared with 404 Media

****Analysis Reveals Critical Flaws in TM SGNL****

Software engineer Micah Lee, who managed to analyse the app’s source code uncovered serious vulnerabilities, including hardcoded credentials. While the nature of the hardcoded credentials was not specified, their presence indicates a serious security flaw.

Furthermore, TeleMessage modifies Signal to add message archiving capabilities, a feature likely used by government officials for record-keeping compliance. However, this modification involves storing decrypted messages on a cloud server, creating a potential security risk.

The main issue is that messages are only encrypted within the app and not end-to-end secured during archiving. They are decrypted and stored in plaintext on TeleMessage’s servers, which are vulnerable to unauthorized access.

The hacker confirmed that the breached server was the same Amazon Web Services (AWS) server used for message archiving, confirming the vulnerability.

A Signal spokesperson reiterated that the company “cannot guarantee the privacy or security properties of unofficial versions of Signal,” further emphasizing the risks associated with modified apps like TM SGNL

The incident highlights the continued use of apps like Signal and TM SGNL by government officials, despite the availability of secure communication systems, raising questions about their choice and the risky assumptions they make about smartphone app security. It also highlights the need for a thorough reassessment of government officials’ communication tools, particularly those involving sensitive information and record-keeping regulations.

Chat App Used by Trump Admin Suspends Operation Amid Hack

Fake Qantas emails in a sophisticated phishing scam steal credit card and personal info from Australians, bypassing major…

Fake Qantas emails in a sophisticated phishing scam steal credit card and personal info from Australians, bypassing major email security filters.

Australian airline Qantas is being targeted by criminals with fake emails claiming to be from the airline. Security experts at Cofense Intelligence, who discovered this attack, found that these convincing emails trick users into giving away their credit card information and personal information like phone numbers and addresses.

These fake Qantas emails mimic real marketing emails, using the same colours, and layout as real ones and “with appropriate branding and functional links.” One clever trick the criminals used was to include an “unsubscribe” link in the emails, just like real marketing emails do.

However, the links in the fake emails didn’t go to Qantas’s official website. Instead, they went to other websites. Experts believe the criminals might have used these fake unsubscribe links to see which email addresses were real and active.

Interestingly, according to Cofense’s report, the fake emails mentioned that Qantas was celebrating its 103rd anniversary. However, Qantas’s 103rd anniversary was actually in 2023, two years ago. This was one of the few mistakes in the otherwise very convincing emails.

Source: Cofense Intelligence

The emails tricked people into clicking on links to fake websites, often containing the phrase “auth/auhs1” followed by random words related to Qantas or coupons. These websites generally disappeared within a day and asked for personal information in a multi-step process, including name, phone number, email address, and home address. This collected contact information, along with the date of birth, could be used for targeted scams or password guessing.

These fake websites allegedly attempted to set up multi-factor authentication after a user entered their credit card information, but this failed. Experts believe that this extra step was added to deceive victims into believing there was a problem with their end rather than the website.

Researchers observed that cybercriminals behind this campaign seemed to be particularly targeting people in Australia. Even though some people in the United States also received these emails, the offers were in Australian dollars, and Qantas is based in Australia.

This suggests the attackers preferred Australian victims. Moreover, they highlighted that the campaign successfully bypassed multiple Secure Email Gateways (SEGs), including Microsoft APT, Proofpoint, and Mimecast, indicating a sophisticated approach by the attackers.

This campaign started around February 2025 but seemed to slow down in mid-March 2025. It shows how criminals are constantly trying new and sophisticated ways to trick people online, making it important for everyone to be very careful about the emails they receive and the websites they visit.

Phishing Emails Impersonating Qantas Target Credit Card Info

Plus: France blames Russia for a series of cyberattacks, the US is taking steps to crack down on a gray market allegedly used by scammers, and Microsoft pushes the password one step closer to death.

Researchers unveiled a cluster of vulnerabilities in Apple’s wireless media streaming platform AirPlay this week that leave millions of third-party devices like speakers and TVs vulnerable to takeover if an attacker is on the same Wi-Fi network as the victim gadget. These “AirBorne” vulnerabilities have all been patched—including some that potentially impacted Apple’s Mac computers—but, in practice, third-party devices may not all get fixes, and even if they do, patch adoption could be low.

Records reviewed by WIRED show that utilizing car subscription features can substantially raise your risk of being subjected to government surveillance, because such services generate troves of data that are valuable to law enforcement. WIRED also did a deep dive on North Korea’s yearslong campaign to place IT workers inside companies in North American, the United Kingdom, and Europe. The schemes are more effective than ever as scammers incorporate AI into their workflows.

WhatsApp designed a special cloud processing platform called Private Processing to allow new AI tools to work in the secure messenger without compromising its end-to-end encryption. Experts warn, though, that it could create enticing targets for hackers. And we have a guide for navigating the privacy risks of using ChatGPT’s new image generator to do seemingly fun and innocuous projects like making an action figure version of yourself.

But wait, there's more! Each week, we round up the security and privacy news we didn’t cover in depth ourselves. Click the headlines to read the full stories. And stay safe out there.

**Three British Retailers Hacked in Spate of Cyberattacks**

Three separate retailers in the UK—including the supermarket Co-op and thedepartment stores Marks & Spencer and Harrods—have all revealed they have recently been subject to cyberattacks, with the intrusions and widespread impact seemingly ongoing. Toward the end of April, Marks & Spencer revealed it had been the victim of a “cyber incident.” Over the following two weeks, it has been forced to pause online orders within its apps, some food has been missing from its shelves, and it has paused recruitment and other “normal processes.” Staff at Co-op have been told to keep webcams turned on during remote meetings and check who is attending calls, after shutting down parts of its IT systems in response to its own hack. Harrods, meanwhile, told customers to “not do anything differently at this point.”

At the time of writing, none of the retailers have detailed the specific nature of the cyberattacks or the full scale of the impacts. It is also unclear if the attacks are linked. Bloomberg has reported a ransomware cartel dubbed DragonForce has claimed it and its partners were behind the attacks. The so-called cartel provides “infrastructure and tools” to hackers but “doesn't require affiliates to deploy its ransomware,” according to research from security firm Secureworks. The hacked companies did not respond to Bloomberg about the claims.

Bleeping Computer originally reported that the threat actors known as Scattered Spider were allegedly behind the attack on Marks & Spencer. The publication reported that the company’s servers were encrypted by ransomware, with the intrusion beginning as early as February. The attribution to Scattered Spider has not been confirmed by Marks & Spencer.

Over the past two years, Scattered Spider has emerged as one of the most prolific and dangerous sets of hackers currently operating. The threat actors are not a well-defined group of hackers. Instead, they’re more a loose collective that uses social engineering—such as phishing and voice calls—to gain initial access into company networks. Scattered Spider members are often English-speaking, teenaged, and can be members of the heinous criminal group the Com. The hackers have been active since June 2022 and have targeted more than 100 companies—including the high-profile hacks on Caesar's Entertainment and MGM Resorts in 2023.

**France (Finally) Names Russian Hackers for the First Time**

French authorities have condemned Russia’s military intelligence agency, accusing it of orchestrating a series of high-profile cyberattacks—including the hacking of Emmanuel Macron’s 2017 presidential campaign, a brazen 2015 assault on the TV channel TV5 Monde, and recent intrusion attempts targeting organizations involved in preparing the 2024 Paris Olympic Games.

French authorities have also disclosed the name and location of a GRU unit tied to the notorious hacking group APT28—information that had never before been officially released. Unit 20728 is based in the southern Russian city of Rostov-on-Don and operates out of the "166th Information Research Center."

This marks the first time French officials have publicly assigned blame to a foreign intelligence service following an internal attribution process. The timing is significant, coming as Paris positions itself at the forefront of Europe’s support for Ukraine.

**US Moves to Crack Down on ‘Largest Illicit Marketplace’**

The Trump administration has taken the first step toward blacklisting a Cambodian financial conglomerate at the center of a global money laundering network. On Thursday, the Treasury Department designated Huione Group as a money-laundering operation, alleging that the company and its affiliates have laundered more than $4 billion for criminals, including North Korean hackers and online scammers.

These scammers—who defraud victims through bogus investments and other schemes—rely on Huione and its affiliates to move funds abroad to evade both law enforcement and anti-money-laundering systems. The proposed action represents the most significant effort yet to crack down on Huione, which is tied to what experts believe to be the “largest illicit marketplace”: Huione Guarantee. According to WIRED’s January report, the marketplace has likely facilitated over $24 billion in gray-market transactions. Experts believe the platform operates as a one-stop shop for scammers, offering everything from victim contact lists and deepfake tools to fake investment websites and other illicit services.

**New Microsoft Accounts Won’t Need Passwords Anymore**

Slowly but surely, the password is dying. Over the past two years, passkeys—a stronger method of authentication that doesn’t require you to remember or use a password—have become more common. The rollout of the technology has been piecemeal, but big tech companies have worked for years to create the alternative, which is more secure than passwords. This week, Microsoft announced that people setting up new accounts with the company won’t have to create passwords at all. “New Microsoft accounts will now be ‘passwordless by default,’” the company wrote in a blog post. Microsoft is also pushing people further away from passwords and will “detect” the best way for people to lo in to their accounts if they have set up alternatives to passwords.

Hacking Spree Hits UK Retail Giants

A photo taken this week showed Mike Waltz using an app that looks like—but is not—Signal to communicate with top officials. "I don't even know where to start with this," says one expert.

On ThursdaY, Reuters published a photo depicting then-United States national security adviser Mike Waltz checking his phone during a cabinet meeting held by President Trump in the White House. If you enlarge the portion of the image that captures Waltz’s screen, it seems to show him using the end-to-end encrypted messaging app Signal. But if you look more closely, a notification on the screen refers to the app as “TM SGNL.” During a White House cabinet meeting on Wednesday, then, Waltz was apparently using an Israeli-made app called TeleMessage Signal to message with people who appear to be top US officials, including JD Vance, Marco Rubio, and Tulsi Gabbard.

After senior Trump administration cabinet members used vanishing Signal messages to coordinate March military strikes in Yemen—and accidentally included the editor in chief of The Atlantic in the group chat—the “SignalGate” scandal highlighted concerning breaches of traditional government “operational security” protocol as well as compliance issues with federal records-retention laws. At the center of the debacle was Waltz, who was ousted by Trump as US national security adviser on Thursday. Waltz created the “Houthi PC Small Group” chat and was the member who added top Atlantic editor Jeffrey Goldberg. "I take full responsibility. I built the group," Waltz told Fox News in late March. "We've got the best technical minds looking at how this happened," he added at the time.

SignalGate had nothing to do with Signal. The app was functioning normally and was simply being used at an inappropriate time for an incredibly sensitive discussion that should have been carried out on special-purpose, hardened federal devices and software platforms. If you're going to flout the protocols, though, Signal is (relatively speaking) a good place to do it, because the app is designed so only the senders and receivers of messages in a group chat can read them. And the app is built to collect as little information as possible about its users and their associates. This means that if US government officials were chatting on the app, spies or malicious hackers could only access their communications by directly compromising participants' devices—a challenge that is potentially surmountable but at least limits possible access points. Using an app like TeleMessage Signal, though, presumably in an attempt to comply with data retention requirements, opens up numerous other paths for adversaries to access messages.

"I don't even know where to start with this," says Jake Williams, a former NSA hacker and vice president of research and development at Hunter Strategy. “It's mind-blowing that the federal government is using Israeli tech to route extremely sensitive data for archival purposes. You just know that someone is grabbing a copy of that data. Even if TeleMessage isn't willingly giving it up, they have just become one of the biggest nation-state targets out there.”

TeleMessage was founded in Israel in 1999 by former Israel Defense Forces technologists and run out of the country until it was acquired last year by the US-based digital communications archiving company Smarsh. The service creates duplicates of communication apps that are outfitted with a “mobile archiver” tool to record and store messages sent through the app.

“Capture, archive and monitor mobile communication: SMS, MMS, Voice Calls, WhatsApp, WeChat, Telegram & Signal,” TeleMessage says on its website. For Signal it adds, “Record and capture Signal calls, texts, multimedia and files on corporate-issued and employee BYOD phones.” (BYOD stands for bring your own device.) In other words, there are TeleMessage versions of Signal for essentially any mainstream consumer device. The company says that using TeleMessage Signal, users can “Maintain all Signal app features and functionality as well as the Signal encryption,” adding that the app provides “End-to-End encryption from the mobile phone through to the corporate archive.” The existence of “the corporate archive,” though, undermines the privacy and security of the end-to-end encryption scheme.

TeleMessage apps are not approved for use under the US government's Federal Risk and Authorization Management Program or FedRAMP. TeleMessage and Smarsh did not immediately return requests for comment about whether their products are used by the US federal government and in what capacity.

"As we have said many times, Signal is an approved app for government use and is loaded on government phones,” White House press secretary Anna Kelly tells WIRED. She did not answer questions about whether the White House approves of federal officials using TeleMessage Signal—which is a different app from Signal—or whether other officials aside from Waltz have used the app or currently use it.

The Cybersecurity and Infrastructure Security Agency does not create policy around federal technology use but does release public guidance. When asked about Waltz’s apparent use of TeleMessage Signal, CISA simply referred WIRED to its best-practices guide for mobile communications. The document specifically advises, “When selecting an end-to-end encrypted messaging app, evaluate the extent to which the app and associated services collect and store metadata.”

It is not clear when Waltz started using TeleMessage Signal and whether he was already using it during SignalGate or started using it afterward in response to criticisms that turning on Signal's disappearing messages feature is in conflict with federal data-retention laws.

“I have no doubt the leadership of the US national security apparatus ran this software through a full information-assurance process to ensure there was no information leakage to foreign nations,” says Johns Hopkins cryptographer Matt Green. “Because if they didn’t, we are screwed.”

Mike Waltz Has Somehow Gotten Even Worse at Using Signal

Luxury retailer Harrods confirms a cyber attack attempt, restricting internet access but keeping its online store running. Learn…

Luxury retailer Harrods confirms a cyber attack attempt, restricting internet access but keeping its online store running. Learn about the growing wave of cyber threats also impacting M&S and Co-op.

Following disruptions at British retail giants Marks & Spencer and Co-op, the esteemed department store Harrods also, reportedly, has been targeted by malicious threat actors attempting to infiltrate their online infrastructure.

This incident, occurring just this week, prompted Harrods to implement protective measures, including restricting internet access across their physical locations. It’s worth noting that while Harrods confirmed the cyber attack attempt and the resulting restrictions on internet access at their sites, they did emphasize that their online store was operating normally on Thursday evening, May 1st, 2025.

“We recently experienced attempts to gain unauthorised access to some of our systems. Our seasoned IT security team immediately took proactive steps to keep systems safe and as a result, we have restricted internet access at our sites today,” Harrods’ official statement read.

While the immediate impact led to operational adjustments behind the scenes, the luxury retailer assured its clientele that their flagship store in Knightsbridge, along with its H Beauty and airport outlets remained open for business.

More importantly, there was no immediate indication that customer data had been compromised. This proactive response highlights the growing awareness and preparedness of major organizations in the face of persistent cybersecurity threats.

****Scattered Spider****

Considering these events collectively, a pattern of aggressive cyber activity against the retail sector in the UK has emerged. The recent attack on Marks & Spencer, which has been attributed to a sophisticated hacking group Scattered Spider, has had a far more severe impact. Their online operations remain crippled, causing a halt to online orders and even leading to empty shelves in some physical stores due to the disruption of inventory management systems, and a significant drop in its market value.

Simultaneously, Co-op has recently been a victim of cyber attacks, leading to the implementation of stringent internal security protocols, including mandatory camera usage during online meetings as a means of verifying attendees.

The fact that these attacks have occurred in close succession raises questions about potential links, whether through shared vulnerabilities in commonly used software like SAP’s enterprise resource planning systems, or perhaps even a coordinated campaign.

The National Cyber Security Centre (NCSC) is actively involved, working with the affected organizations to understand the nature and potential connections between these incidents.

“The NCSC continues to work closely with organisations that have reported incidents to us to fully understand the nature of these attacks and to provide expert advice to the wider sector based on the threat picture,” Richard Horne, NCSC’s chief executive stated.

UK Luxury Retailer Harrods Hit by Cyber Attack After M&S, Co-op

Joe talks about how helping the helpers can put a fire in you and the importance of keeping nonprofits cybersecure.

Thursday, May 1, 2025 14:01

Welcome to this week’s edition of the Threat Source newsletter. 

Recently, I was invited to sit on a panel at the CIO4Good Conference here in Washington D.C., where I talked about incident response and cyber preparedness to a room full of CIOs who help lead wonderful missions to help others. I’m incredibly fortunate to be able to volunteer for the NGO community. I’ve been involved with them for a few years now, and it has been a singular experience.  

I sit in a uniquely blessed situation. Cisco Talos is resourced to help protect our customers — we have expertise, tooling and a huge array of diverse security skillsets. A humanitarian assistance or non-governmental organization (NGO) usually has none or very few of these luxuries. If I can take some of my time and experience here at Talos and help others who provide housing to the homeless, protect refugees or feed the hungry, damn right I’m gonna do it. And NGOs? They really need help.  

In today’s global humanitarian funding climate, money and grants are very scarce to come by_._ This means the competition for the dollars that remain is fierce, and that things like cybersecurity can fall by the wayside. But security in an NGO is incredibly important. We're talking about incredibly vulnerable and marginalized people who deserve aid, and the amazing volunteers who should have privacy without malicious interference. 

The hard truth is that cybersecurity can be a bleak space. We as professionals do not operate in the “good news” business. We work, and thrive, in adversarial conditions — actively searching for what the bad guys are doing and learning how they are coming after the good guys. They’re launching ransomware. They are extorting and causing real harm to others. This is day in and day out, and it can wear you down mentally. You have to endure and focus on the mission. After all, that’s the gig. 

This is why I enjoy volunteering by either giving some of my time and expertise to a mentee or to an NGO that has an outstanding mission to help others. It puts fuel in your soul and reminds you that others are fighting their own good fights. These organizations are some of the best. They have a thankless, often dangerous, mission to help others have better lives. The way I see it, volunteering is the least I could do. 

If you want to join me, there are some places that could use your help. Check out the Cyber Peace Institute, or Defcon Project Franklin.

**The one big thing **

This week is bittersweet because we’re discussing the final section of Talos' 2024 Year in Review report. Let’s jump into the abyss of AI-based threats together. 

**Why do I care? **

AI may not have upended the threat landscape last year, but it’s setting the stage for 2025, where agentic AI and automated vulnerability discovery could pose serious challenges for defenders. The future may bring:

1.  The use of agentic AI to conduct multi-stage attacks or find creative ways to access restricted systems 
2.  Improved personalization and professionalization of social engineering 
3.  Automated vulnerability discovery and exploitation 
4.  Capabilities to compromise AI models, systems and infrastructure that organizations around the world are building 

**So now what? **

Continue to stay informed and alert, and for more information, read Talos’ blog post about these threats or download the full Year in Review.

**Top security headlines of the week **

**AirPlay Vulnerabilities Expose Apple Devices to Zero-Click Takeover.** The identified security defects, 23 in total, could be exploited over wireless networks and peer–to-peer connections, leading to the complete compromise of not only Apple products, but also third-party devices that use the AirPlay SDK. (SecurityWeek) 

**4 Million Affected by VeriSource Data Breach.** VeriSource says the stolen information belonged to employees and dependents of companies using its services. It has been working with its customers to “collect the necessary information to notify additional individuals affected by this incident.” (SecurityWeek) 

**SAP NetWeaver Visual Composer Flaw Under Active Exploitation.** CVE-2025-31324 is a critical vulnerability with a maximum CVSS score of 10 that affects all SAP NetWeaver 7.xx versions. It allows unauthenticated remote attackers to upload arbitrary files to Internet exposed systems without any restrictions. (DarkReading) 

**FBI shares massive list of 42,000 LabHost phishing domains.** The FBI has shared 42,000 phishing domains tied to the LabHost cybercrime platform, one of the largest global phishing-as-a-service (PhaaS) platforms that was dismantled in April 2024. (BleepingComputer)

**Can’t get enough Talos? **

State-of-the-art phishing: MFA bypass. Cybercriminals are bypassing multi-factor authentication (MFA) using adversary-in-the-middle (AiTM) attacks via reverse proxies, intercepting credentials and authentication cookies.

IR Trends Q1 2025: Phishing soars as identity-based attacks persist. This quarter, phishing attacks surged as the primary method for initial access. Learn how you can detect and prevent pre-ransomware attacks.

TTP Episode 11. Craig, Bill and Hazel discuss three of the biggest callouts from Cisco Talos' latest Incident Response Quarterly Trends.

Talos Takes: Identity and MFA. Hazel and friends discuss how AI isn't rewriting the cybercrime playbook, but it is turbo charging some of the old tricks, particularly on the social engineering side.

**Upcoming events where you can find Talos **

*   PIVOTcon (May 7 – 9) Malaga, Spain 
*   CTA TIPS 2025 (May 14 – 15)  Arlington, VA 
*   Cisco Connect UK & Ireland (May 20) London, UK 
*   BotConf (May 20 – 23) Angers, France 
*   Cisco Live U.S. (June 8 – 12) San Diego, CA

**Most prevalent malware files from Talos telemetry over the past week **

**SHA256: 9f1f11a708d393e0a4109ae189bc64f1f3e312653dcf317a2bd406f18ffcc507**    
MD5: 2915b3f8b703eb744fc54c81f4a9c67f    
VirusTotal: https://www.virustotal.com/gui/file/9f1f11a708d393e0a4109ae189bc64f1f3e312653dcf317a2bd406f18ffcc507/    
Typical Filename: VID001.exe   
Detection Name: Win.Worm.Bitmin-9847045-0 

**SHA256: a31f222fc283227f5e7988d1ad9c0aecd66d58bb7b4d8518ae23e110308dbf91**    
MD5: 7bdbd180c081fa63ca94f9c22c457376    
VirusTotal: https://www.virustotal.com/gui/file/a31f222fc283227f5e7988d1ad9c0aecd66d58bb7b4d8518ae23e110308dbf91    
Typical Filename: img001.exe   
Detection Name: Simple\_Custom\_Detection 

**SHA256: 47ecaab5cd6b26fe18d9759a9392bce81ba379817c53a3a468fe9060a076f8ca**    
MD5: 71fea034b422e4a17ebb06022532fdde    
VirusTotal: https://www.virustotal.com/gui/file/a31f222fc283227f5e7988d1ad9c0aecd66d58bb7b4d8518ae23e110308dbf91    
Typical Filename: VID001.exe    
Detection Name: Coinminer:MBT.26mw.in14.Talos

Understanding the challenges of securing an NGO

These 3 cybersecurity threats may not be the most sophisticated, but they're the most effective—and serious—threats for small businesses.

In an online world filled with extraordinarily sophisticated cyberattacks—including organized assaults on software supply chains, state-directed exploitations of undiscovered vulnerabilities, and the novel and malicious use of artificial intelligence (AI)—small businesses are forced to prioritize a different type of cyberattack: The type that gets through.

Without robust IT budgets or fully staffed cybersecurity departments, small businesses often rely on their own small stable of workers (including sole proprietors with effectively zero employees) to stay safe online. That means that what worries these businesses most in cybersecurity is what is most likely to work against them.

Here are the three biggest cybersecurity threats to small businesses right now. They may sound basic or even crude, but they are the biggest threats precisely because they are so effective.

**1\. Phishing**

In phishing scams, cybercriminals trick people and businesses into handing over sensitive information like credit card numbers or login details for vital online accounts.

Cybercriminals do this by sending messages—like emails and texts—disguised as legitimate communications from major businesses (think Slack, Uber, FedEx, and Google). These messages frequently warn recipients about a problem with their accounts, like a password that needs to be updated, a policy change that requires a login, or a delayed package that has to be approved.

But when victims follow the links within these malicious messages, they are brought to a website that, while appearing genuine, is completely controlled by cybercriminals. Lured in by similar color schemes, company logos, and familiar layouts, victims “log in” to their account by entering their username and password. In reality, those usernames and passwords are delivered directly to cybercriminals on the other side of the website.

In phishing attacks, there never is a genuine problem with a user’s account, and there never is a real request for information from the company. Instead, the entire back-and-forth is a charade.

As devastating as this is, the more complex threat of phishing lies in its adaptability. Whereas early phishing scams arrived almost entirely through emails, modern phishing scams can reach victims through malicious websites, text messages, social media, and even mobile app downloads.

In 2024, Malwarebytes found more than 22,800 phishing apps on Android, according to the recent 2025 State of Malware report. Disguised as apps such as TikTok, Spotify, and WhatsApp, these Android apps can trick victims into handing over their associated usernames and passwords when asking them to login.

Understandably, some small business owners might discount the threat of losing their login credentials to consumer tools like Spotify and TikTok. But here, the threat of phishing is compounded by another enormous problem in cybersecurity, which is that too many individuals and businesses reuse passwords across multiple accounts. That means that email login credentials that were successfully stolen in a phishing scam could also provide access to a small business’s financial accounts, payroll services, and even tax info.

Further, if a hacker were to use their wrongful access to steal customer data, then a small business might also have to front the cost for sending out data breach notifications, per their state’s regulations.

**How to protect your business:**

*   Use unique, strong passwords for each online account and store and create these passwords using a password manager
*   Enable “multifactor authentication” on all important business accounts so that hackers who steal passwords cannot access accounts with only usernames and passwords
*   Do not click on links from unknown senders
*   If you’re asked for login information through an email or online message, do _not_ input your login info in the email or through whatever link you’re directed towards. Instead, navigate to the site directly.

Social media is not just a vital tool for promoting many small businesses, it can often be the entire business itself.

YouTube video creators, Twitch streamers, and lifestyle influencers on TikTok and Instagram are effectively small business owners. They make a product and they earn revenue just like many online businesses—through ads and sponsored partnership deals.

If any of these social media business owners lost their login credentials through a phishing scam or data breach, they could potentially lose access to their entire operation.

In 2023, famous YouTube tech personality Linus Sebastian suffered a hack of three different YouTube channels associated with his company, Linus Media Group. The hackers hijacked the channels to spread cryptocurrency scams, while deleting some of the group’s old videos in the process. The attack was largely reminiscent of a 2022 YouTube account hack that repurposed a 2018 interview with Apple CEO Tim Cook to fool viewers into following a separate cryptocurrency scam.

Both incidents reveal the real threat to small businesses everywhere.

Social media account hacks are not only a risk to content creators—they’re a risk to any business with a legitimate online audience. Once scammers have control of any business’s social media account, they can send fraudulent messages to people on the business’s behalf and promote online scams that could tarnish the business’s reputation for years to come. Hackers could even swipe sensitive information before access is restored.

While social media hacks are often the byproduct of successful phishing attacks, cybercriminals can also gain wrongful access to a social media account through separate data breaches.

Hackers frequently buy usernames and passwords on the dark web from prior data breaches. They then use those login credentials on a variety of online accounts that belong to the same owner—entering the username and password for, say, a breached LinkedIn account into the username and password fields for QuickBooks, Shopify, and Hubspot. When people and businesses reuse passwords across accounts, hackers find an easy way in.

**How to protect your business:**

*   Use unique, strong passwords for each account and store and create these passwords using a password manager
*   Enable “multifactor authentication” on all important business accounts so that hackers who steal passwords cannot access accounts with only usernames and passwords
*   Avoid phishing attacks by refusing to click on links from unknown senders
*   Do not download any attachments from unknown senders or from unexpected emails. These attachments could contain malware that steals passwords, data, and multifactor authentication codes.

**3\. Ransomware**

Ransomware is more than a cyberthreat—it is an existential one, threatening to lock down computer systems, remove vital data, and waste potentially hundreds of thousands of dollars in recovery.

But because most ransomware news coverage focuses on major, multibillion dollar corporations that get hit with disruptive attacks, many boutique businesses might assume that ransomware gangs would never bother with a small outfit like theirs.

In reality, ransomware gangs do not care about the size, budget, or resources of their victims, because ransomware itself has become increasingly easy to scale and deploy.

Modern gangs operate on a “Ransomware-as-a-Service” model, where ransomware developers lease out their malicious software to “affiliates” who, if successful in launching an attack, return a small portion of their ill-gotten gains back to the ransomware developers at the top. LockBit, which was once the most active ransomware gang in history, had at least 194 affiliates doing its dirty work.

While LockBit most frequently attacked large conglomerates and governments, another Ransomware-as-a-Service group called Phobos was more than happy to prey on smaller organizations.

In 2024, when the US Department of Justice charged a Russian national named Evgenii Ptitsyn for his alleged involvement into running Phobos, its indictment revealed that one of the ransomware gang’s affiliates allegedly extorted a Maryland-based healthcare provider out of just $2,300. Other victims cited in the indictment included a marketing and data analytics firm in Arizona, a Connecticut public school system, and an automotive company out of Ohio.

According to data analyzed by Malwarebytes’ business unit ThreatDown, these smaller victims were the bread and butter of Phobos. Unlike other ransomware gangs that demanded up to $1 million or more from each victim in 2023, Phobos operators demanded an average of $1,719 from victims, with a median demand of just $300.

**How to protect your business:**

*   **Block common forms of entry.** Patch known vulnerabilities in internet-facing software and disable or harden the login credentials for remote work tools like RDP ports and VPNs.
*   **Prevent intrusions and stop malicious encryption.** Stop threats early before they can infiltrate or infect your endpoints. Use always-on cybersecurity software that can prevent exploits and malware used to deliver ransomware.
*   **Create offsite, offline backups.** Keep backups offsite and offline, beyond the reach of attackers. Test them regularly to make sure you can restore essential business functions swiftly.
*   **Don’t get attacked twice.** Once you’ve isolated an outbreak and stopped a first attack, you must remove every trace of the attackers, their malware, their tools, and their methods of entry, to avoid being attacked again.

 The 3 biggest cybersecurity threats to small businesses 

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