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Top 5 AI Cyber Security Threats SMBs Need to Worry About

Summary:

Artificial intelligence (AI) is a powerful tool for business. You’re probably using AI every day without even realizing it. It’s now a key component of chatbots, analytics and marketing. Although AI can improve efficiency and reduce costs, it also introduces new cyber threats. AI cyber security threats are gaining enough momentum that they can’t be ignored.

SMBs are a prime target because they often lack the expertise for advanced cyber defense systems. Before using AI tools, you need to understand how these new technologies can now be weaponized against your company. We’ll explain the top five AI cyber threats to SMBs, and what you can do to protect your network, systems, data and clients.

What Are AI Cyber Security Threats to Small and Midsized Businesses?

AI cyber threats are digital risks that arise from the use or misuse of artificial intelligence. Attackers are using AI to automate and enhance cyberattacks, while businesses are adopting AI-driven systems that can unintentionally create new vulnerabilities. These threats can lead to data theft, privacy breaches, financial loss and even reputational damage. Because many SMBs work in the cloud, they’re more vulnerable to AI-generated phishing scams and automated data-capturing tools. That means they’re more exposed to an attack than ever before. By understanding these risks, you can build smarter defenses and create a comprehensive AI use plan that helps your team stay compliant and secure.

Q: What are AI cyber threats, and why are they dangerous for SMBs?

A: AI cyber security attacks arise from the misuse or exploitation of artificial intelligence. Attackers now use AI to automate hacking, create realistic phishing scams and find systemic vulnerabilities even faster than they could before. SMBs are especially vulnerable because they often lack advanced defense systems and AI-specific security policies.

How Can Deepfakes Be Used Against Your Business?

These realistic but fake audio, video or image files generated through AI are often associated with celebrities or politics, but they’re increasingly used to scam businesses and must be part of your small business cyber security defense strategy.

Case Study – Deepfake

The VP of accounting for a small professional services company arrives at her office and goes through her email and voicemails. Halfway through, she listens to a voice message from her CEO … or so she thinks. The voice on the recording sounds just like him, and he asks her to wire money to an account and provides the account information. He also asks her to forward the company’s latest financial projections. Unbeknownst to her, she’s about to become the victim of a deepfake attack. After completing the requested actions, she goes about her business day, only to discover, hours later, that she’s been scammed by a deepfake. This wasn’t a movie plot. This was a devastating AI-driven cyberattack using deepfake technology.

Deepfakes are getting so good that they can impersonate almost anyone. They can also spread false information about your company and trick your trusted employees into sharing private data. The best defense against any AI threat is security awareness of attack techniques. Train your staff to always verify requests through secure channels and never rely solely on voice or video confirmation. Regular cyber security awareness training should be a key part of your artificial intelligence use policy.

Q: How can deepfakes be used to target small businesses?

A: Deepfakes use AI to create fake but convincing audio, video or images that can impersonate executives or employees. Cybercriminals use them to trick staff into transferring money or sharing confidential data. To prevent deepfake scams, employees should verify all unusual requests through secure channels and follow the company’s AI policy.

Do You Need to Worry About AI-Driven Phishing Attacks?

Phishing has been around for a long time, but AI makes it even fishier. Cybercriminals now use AI tools to write perfect, tailored communications that look real and don't have any spelling or grammar mistakes. These AI emails are tough to sniff out, and even experienced users can easily fall for them.

An AI-driven cyberattack using advanced phishing might involve:

When you click on these links, they can install different kinds of malware, steal your credentials or give attackers direct access to your computers. To lower these risks, use multifactor authentication (MFA) on your accounts and show your employees how to spot warning signs that aren't always clear. As part of your overall cyber risk management plan, your AI use policy should also limit what information can be communicated through email or other public AI tools. This will help keep sensitive data from getting out.

Q: Why are AI-driven phishing attacks more effective than traditional ones?

A: AI-generated phishing emails are highly personalized, grammatically correct and nearly identical to legitimate messages. They can trick even experienced employees into clicking malicious links or downloading malware. Using multifactor authentication and training employees to spot subtle red flags are key defenses against these AI-powered scams.

How Do AI Privacy Risks Threaten Your Clients’ Data?

AI privacy risks are among the most serious challenges facing SMBs. When you use AI tools for anything from analytics to marketing or client support, you’re often feeding those systems sensitive data. That data can include personal details, purchase histories or internal communications.

The problem is that many AI systems store or reuse this data to train their models. If not managed correctly, it can lead to:

Even a small leak can damage trust and lead to legal trouble. To mitigate AI security risks, review every tool’s data handling policy before adoption. Avoid entering private or financial details into public AI platforms, and maintain internal data encryption and access controls. Your AI user policy should clearly define how AI tools can be used, what data they can access and who’s responsible for monitoring compliance.

Q: What are AI privacy risks, and how can they affect your clients?

A: AI business privacy risks occur when sensitive client or business data is mishandled by AI tools. Many systems collect or reuse data to train models, which can lead to leaks or legal violations. To reduce these risks, SMBs should review each tool’s data policies, restrict what information is entered into public AI systems and define strict data rules in their AI use policy.

Can AI Be Used to Launch Cyberattacks Against You?

Unfortunately, yes. One of the scariest AI business risks is how hackers use AI to make their attacks faster, smarter and harder to detect. AI-created cyberattacks can target networks, generate malicious code or learn from security patterns to find vulnerabilities automatically.

For example, AI can:

It's hard to see these kinds of AI attacks until it's too late, and off the shelf or free security technologies might not be able to stop them. Think about getting AI-based threat detection systems that look for strange trends in activity to make your security stronger. Software with live security operations center (SOC) monitoring that has every alert evaluated by an expert to avoid false alarms. Your AI policy should also have rules for frequent software updates, network monitoring and how to handle problems. With such an approach, your team will know exactly what to do if an attack happens.

Why Are AI Risks Growing for SMBs?

AI business risks are growing quickly because small businesses are using new technologies without fully knowing how these could affect their security. A lot of small and midsized businesses use AI-powered technologies for things like marketing, HR, accounting and even cyber security. But not many of them have professionals who know how to make such products work together.

Problems can arise from overreliance on AI automation without human oversight, unclear or incomplete policies about data use and a lack of policies governing the use of AI. When gaps exist, you’re not just exposing your company; you’re also putting your clients’ data and trust at risk. A managed security service provider (MSSP) can help ensure you’re using AI safely and help manage AI risks by developing a comprehensive AI use policy that covers training, data handling and vendor selection.

Key topics to address in your AI user’s policy include:

This proactive approach helps you stay compliant and resilient in an increasingly AI-driven landscape.

How Can You Protect Your Business From AI-Related Threats?

The good news is that while AI attacks are hard to thwart, they’re not unstoppable. With a savvy mix of policies, technology and awareness, you can cut your exposure.

Here’s how to begin:

Q: How can SMBs protect themselves from growing AI business risks?

A: To stay secure, SMBs should develop a comprehensive AI use policy that outlines how AI tools are used, who monitors them and how data is protected. Regular employee training, AI-based threat detection, data encryption and security audits can help prevent AI cyberattacks and demonstrate a strong commitment to client data protection.

Are You Ready to Defend Against AI Cyber Security Threats?

AI can help you or hurt you, so as you embrace these tools to streamline operations, always keep AI cyber threats top of mind. Make your firm safer and more trustworthy by learning about the risks of AI cyberattacks, dealing with AI privacy issues and handling AI business risks in a responsible way. If you have a clear AI user policy, your staff will use the technology in a safer and wiser way, and that sort of proactive approach is the only way to stay ahead in a world where AI can outsmart regular security solutions.

Start educating yourself and your staff about AI threats with employee security awareness training. Reach out to us to schedule training and a network security assessment in the greater New York City area or contact a local IT security expert to help you defend against AI cyberattacks. It’s far less expensive and time consuming to avoid a cyberattack or data breach than to recover from one.