Small businesses that use numerous applications and fail to update software leave their operations vulnerable and wide open to cyberattacks. Jake Moore, The Global Cybersecurity Advisor for ESET, shares how you can keep your business safe from threats.

The Australian Cyber Security Centre’s Annual Cyber Threat Report 2023–2024 indicates that small businesses experienced an average financial loss of $49,600 per cyber crime incident—an 8 per cent increase from the previous year. Similarly, Verizon’s 2024 Data Breach Investigations Report highlights that unpatched vulnerabilities contributed significantly to data breaches, underlining the dangers of outdated systems.

Most small business owners lack the time or expertise to conduct a comprehensive cyber risk assessment, often operating with a mix of outdated and modern technology. This highlights the need for robust cybersecurity measures to protect against evolving threats.

Outdated software doesn’t just affect individual systems; it can jeopardise an entire organisation, leading to data breaches, ransomware attacks, and reputational damage.

Understanding how cyber criminals exploit these vulnerabilities is the first step towards protecting your business.

Here are five ways hackers exploit unpatched systems

Here are five key ways hackers exploit outdated software, along with strategies to mitigate these risks.

1. Exploiting unpatched vulnerabilities

Hackers frequently target known vulnerabilities in outdated software to gain access to systems. While software developers release updates to address these vulnerabilities, delays in applying them can leave businesses exposed. High-profile attacks, such as the 2017 WannaCry ransomware incident, demonstrate the severe consequences of unpatched systems.

The fix: Automate updates using patch management tools to ensure critical patches are installed promptly. These tools can identify outdated software and prioritise updates that address major security risks. Regular scans help prevent overlooked vulnerabilities from becoming entry points for attackers.

2. Targeting legacy systems

Legacy systems, often critical to operations, are particularly vulnerable to cyber attacks. These older systems typically lack modern security features and may no longer receive updates from developers, making them a prime target for hackers. A breach in a legacy system can disrupt operations and compromise sensitive data.

The fix: If replacing legacy systems isn’t immediately possible, isolate them from the wider network using segmentation to limit potential damage. Virtual patching, which blocks known vulnerabilities without modifying the system itself, can provide interim protection. Developing a phased plan to transition to modern solutions is crucial for long-term security.

3. Delivering ransomware via outdated software

Ransomware attacks often exploit outdated systems to infiltrate networks and encrypt critical data. These attacks can result in significant financial losses, operational downtime, and reputational damage, as businesses may be forced to pay ransoms to regain access to their systems.

The fix: Implement endpoint security tools to detect and block ransomware attacks at their source. Regularly back up critical data and store these backups securely—either offline or in a cloud environment—to enable swift recovery without paying a ransom.

4. Exploiting outdated applications to strengthen phishing campaigns

Outdated applications, such as email clients, can leave small businesses more susceptible to phishing attacks. Cyber criminals exploit these vulnerabilities to bypass spam filters, making their phishing emails appear legitimate and increasing the likelihood that employees will inadvertently grant access to malicious actors.

The fix: Conduct regular staff training to help employees recognise phishing attempts and avoid clicking on suspicious links. Advanced email filtering solutions can block malicious emails before they reach inboxes, while multi-factor authentication adds an extra layer of security in case credentials are compromised.

5. Undermining compliance and regulatory requirements

Outdated software can also result in non-compliance with data protection regulations, such as GDPR, HIPAA, or CCPA. Non-compliance can expose businesses to fines, legal repercussions, and reputational damage. Cybercriminals are well aware of these gaps and often target businesses that lack the resources to maintain compliance.

The fix: Regularly audit your systems to ensure compliance with relevant regulations. Managed service providers (MSPs) can help monitor and maintain compliance, ensuring updates are applied promptly and vulnerabilities are addressed. Maintaining detailed records of updates and audit schedules demonstrates accountability and readiness during regulatory reviews.

Setting priorities is essential

Reducing risks from outdated software requires a proactive approach to cybersecurity. Leadership plays a crucial role in prioritising updates, allocating resources, and fostering a culture of security awareness and education across the organisation.

Modern tools, such as AI-powered endpoint protection and cloud-based patch management, enable businesses to stay ahead of threats by streamlining updates and monitoring for vulnerabilities.

By prioritising regular software maintenance and adopting advanced technologies, businesses can protect their assets, maintain customer trust, and reduce the likelihood of a costly breach. Investing in cyber security is not just about risk management—it’s about ensuring the long-term success and resilience of your business.

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