5 Real-World Examples of How Small Businesses Got Hacked — and How to Avoid It
Every week we hear about another cyberattack. But it’s not just big names like Microsoft or Uber that get hit — it’s local businesses, schools, and charities.
At NEON, we see it all the time. Someone clicks the wrong email, or a password is reused one too many times, and suddenly the entire company grinds to a halt.
So let’s look at five real-world examples of small business breaches — and what would have prevented them.
1️⃣ The “Fake Invoice” Email Scam
A local construction firm received an email that looked exactly like one from their usual supplier — same logo, same tone. The attached “invoice” contained a virus that quietly installed remote-access software. Within a week, the attackers had changed the company’s online banking login and moved £12,000.
How it happened:
No email filtering or link scanning in place.
No staff training to spot spoofed emails.
How to prevent it:
✅ Use advanced email protection with anti-phishing and attachment scanning.
✅ Run user awareness training and simulated phishing tests.
✅ Always confirm payment changes via phone — not email.
At NEON, our K365 User Security package includes both phishing protection and dark-web monitoring to keep you safe.
2️⃣ The Password Reuse Problem
A staff member at a retail shop used the same password for Microsoft 365, Facebook, and a personal shopping site. When that shopping site was breached, the hacker logged into her work account and began emailing customers fake refund links.
How it happened:
Password reused across multiple sites.
No Multi-Factor Authentication (MFA).
How to prevent it:
✅ Enforce unique passwords with a password manager.
✅ Enable MFA on every system — it blocks 99.9% of password attacks.
✅ Use Dark Web Monitoring to alert you if staff credentials leak online.
3️⃣ The “Forgotten Laptop” Breach
An employee’s laptop was stolen from their car. It had no encryption or login timeout, and it contained client data. Within days, clients started receiving spam and scam messages.
How it happened:
No device encryption.
No mobile device management.
How to prevent it:
✅ Encrypt all laptops with BitLocker or Intune policies.
✅ Use Datto Endpoint Backup to ensure sensitive files are always recoverable.
✅ Set automatic lockout and remote wipe capabilities.
4️⃣ The Outdated Server
A small manufacturing company was hit by ransomware after leaving an old Windows Server 2012 system online. Microsoft had stopped security updates months earlier, but no one noticed.
How it happened:
Out-of-date operating system.
No patch management or vulnerability scanning.
How to prevent it:
✅ Keep systems updated automatically with Datto RMM patching.
✅ Replace unsupported software before it becomes a risk.
✅ Run regular security audits to catch forgotten devices.
5️⃣ The Insider Mistake
A new admin accidentally shared the company’s entire OneDrive folder with “Anyone with the link.” Sensitive client files became public in Google search results.
How it happened:
No data-sharing restrictions or supervision.
How to prevent it:
✅ Apply data loss prevention (DLP) rules in Microsoft 365.
✅ Use audit logs to track who shared what.
✅ Provide short “digital hygiene” training for new staff.
🧠 Lessons Learned
Most cyber incidents are preventable with:
Regular software updates
Multi-Factor Authentication
Proper backups and monitoring
Staff awareness training
Cybersecurity isn’t just for big companies — it’s essential protection for every small business that relies on email, cloud storage, or online payments.
🔐 How NEON Helps Protect Local Businesses
At NEON, we provide fully managed IT security — including:
Datto RMM monitoring and patching
K365 user protection with phishing simulations
Endpoint Backup and ransomware recovery
Dark web scanning and compliance support
If you’d like a free security review or to find out whether your business passwords have appeared on the dark web, get in touch with us today.