India’s Rising Cyber Threats: How MSMEs Can Defend Against Growing Attacks

Introduction

In recent years, India has seen a dramatic increase in cyberattacks, with the average website experiencing 6.9 million unwanted requests annually, according to Indusface. Alarmingly, this is 26% higher than the global average, making Indian businesses, particularly Micro, Small, and Medium Enterprises (MSMEs), highly vulnerable. Denial-of-Service (DoS) attacks are also disproportionately affecting Indian companies compared to global counterparts.

For MSMEs, which form the backbone of India’s economy, these attacks pose a severe threat. Unlike large corporations, MSMEs often lack robust cybersecurity infrastructure, making them prime targets for cybercriminals. The impact of such attacks extends beyond financial loss—operational disruptions, reputational damage, and legal consequences can cripple a business overnight.

This article will provide a comprehensive analysis of the cybersecurity challenges faced by Indian MSMEs, the types of attacks they encounter, the business impact, and practical mitigation strategies to enhance security posture.

1. The Rising Cybersecurity Threat for Indian MSMEs

1.1. Why Are Indian MSMEs a Prime Target?

MSMEs in India are particularly vulnerable to cyberattacks due to several factors:

Limited Cybersecurity Awareness – Many MSMEs operate with a lack of knowledge regarding cyber threats and best practices.
Insufficient Security Budgets – Unlike large enterprises, MSMEs often underinvest in cybersecurity due to budget constraints.
High Digital Adoption – The push towards digital transformation post-pandemic has increased their attack surface.
Weak IT Infrastructure – Many MSMEs rely on outdated software, lack firewalls, or use unpatched systems.
Reliance on Third-Party Services – Many businesses use cloud services, outsourced IT, and vendor solutions, which, if compromised, can be a weak link.

1.2. Statistical Overview of Cyber Threats in India

The Indian Computer Emergency Response Team (CERT-IN) reported over 13.9 lakh cybersecurity incidents in 2022, showing an exponential rise in attacks.
26% more cyberattacks occur per Indian website than the global average, making India one of the most targeted nations.
Ransomware attacks in India increased by 53% in 2023, with MSMEs being a major victim group.
Denial-of-Service (DoS) and Distributed Denial-of-Service (DDoS) attacks against Indian businesses are significantly higher than global trends.

These statistics highlight the urgent need for MSMEs to prioritise cybersecurity and build resilience against growing threats.

2. Types of Cyberattacks Plaguing Indian MSMEs

2.1. Denial-of-Service (DoS) and Distributed Denial-of-Service (DDoS) Attacks

A DoS attack overwhelms a business’s servers with excessive traffic, causing slowdowns or complete shutdowns. In a DDoS attack, multiple compromised systems (botnets) flood a target with traffic.

Impact on MSMEs:
- Website downtime leads to loss of customers and sales.
- Increased server costs due to bandwidth consumption.
- Possible data loss or corruption.
Example: In 2023, an e-commerce MSME in Bengaluru faced a DDoS attack that rendered their website offline for two days, causing a revenue loss of nearly ₹25 lakh.

2.2. Ransomware Attacks

Ransomware is malware that encrypts business data and demands a ransom for its release.

Impact on MSMEs:
- Data loss if backups are not available.
- Financial losses due to ransom payments and operational downtime.
- Legal issues if customer data is leaked.
Example: In 2022, a small finance company in Chennai had its customer records locked by ransomware, with hackers demanding ₹50 lakh for decryption. The company had no backup, leading to huge financial and reputational losses.

2.3. Phishing and Business Email Compromise (BEC)

Phishing attacks trick employees into revealing sensitive information via fraudulent emails or messages. BEC involves impersonation to manipulate financial transactions.

Impact on MSMEs:
- Financial fraud through fake invoices and fund transfers.
- Credential theft, allowing hackers to access internal systems.
- Supply chain attacks through compromised vendor communications.
Example: A Delhi-based MSME lost ₹10 lakh when an attacker impersonated their supplier and redirected payments to a fraudulent bank account.

2.4. Insider Threats and Employee Negligence

Many security breaches occur due to disgruntled employees or unintentional negligence.

Impact on MSMEs:
- Leaked trade secrets and customer data.
- Unauthorised access leading to system compromise.
- Legal repercussions under data protection laws.
Example: An MSME in Pune suffered a data breach when a former employee sold client information to competitors.

3. Business Impact: Why Cybersecurity Matters for MSMEs

3.1. Financial Repercussions

Cyberattacks lead to:

Direct financial loss due to fraud, ransom payments, and theft.
Indirect costs from downtime, recovery, and regulatory fines.
Loss of investor confidence, affecting growth opportunities.

3.2. Reputation Damage

A data breach or cyberattack erodes customer trust, leading to loss of business. Negative publicity can significantly impact brand credibility.

3.3. Regulatory and Legal Consequences

With stricter data protection laws, such as the Digital Personal Data Protection Act (DPDP) 2023, MSMEs can face penalties if customer data is compromised.

Case Study 1: How a Manufacturing MSME in Gujarat Lost ₹30 Lakh to a Ransomware Attack

In early 2023, a mid-sized manufacturing company in Gujarat suffered a ransomware attack that encrypted all its production and customer data. The attackers demanded ₹30 lakh in Bitcoin for decryption.

Weakness: The company had no cybersecurity framework and relied on a single local server without backups.
Impact: Production halted for five days, leading to order delays, financial loss, and reputational damage.
Resolution: They refused to pay the ransom and sought cybersecurity experts to recover some data. However, critical files were lost forever.
Lesson Learned: The company now invests in regular data backups and endpoint protection.

Case Study 2: Delhi-Based E-Commerce MSME Hit by a DDoS Attack During Festive Sales

A Delhi-based online retailer saw an unexpected traffic surge in October 2023, just before Diwali. Initially presumed to be genuine users, the massive traffic turned out to be a DDoS attack, slowing the website significantly.

Weakness: Their hosting provider had no anti-DDoS protection.
Impact: The website remained inaccessible for two days, leading to an estimated revenue loss of ₹20 lakh.
Resolution: They switched to a hosting provider with built-in DDoS protection and adopted CDN-based traffic filtering.
Lesson Learned: Investing in cloud security and DDoS mitigation tools is crucial for e-commerce MSMEs.

Let’s delve into some real-world examples that have shaken the nation:

The AIIMS Delhi Ransomware Siege (2023): Imagine a major hospital crippled by a ransomware attack. That’s exactly what happened at AIIMS Delhi. Patient data was compromised, and essential services were disrupted, highlighting the vulnerability of our healthcare systems.
The Data Breach Epidemic: From online grocery platforms like Bigbasket to educational platforms like Unacademy and even airlines like Air India, massive data breaches have exposed the personal information of millions. This erosion of trust is a serious consequence of inadequate cybersecurity practices.
Attacks on Critical Infrastructure: The digital battlefield extends beyond personal data. Attacks on power grids in Telangana and Andhra Pradesh demonstrate the potential for widespread disruption and chaos. These incidents serve as a chilling reminder of the fragility of our essential services.
Financial Fraud’s Digital Surge: With the rise of digital payments, financial fraud has become a rampant issue. The Cosmos Bank cyber attack, where hackers siphoned off millions, showcased the sophistication of modern cybercriminals.
The Ever-Present Threat of Ransomware: Like the global Wannacry attack that hit India hard, Ransomware is a constant threat. This type of cyber attack can paralyze entire organizations, and demands payment to restore systems.

4. Mitigation Strategies: Securing MSMEs Against Cyber Threats

4.1. Implement a Cybersecurity Framework

Adopt best practices such as ISO 27001 or NIST Cybersecurity Framework.
Regularly audit and update security protocols.

4.2. Invest in Cybersecurity Solutions

Deploy firewalls, endpoint security, and intrusion detection systems.
Use multi-factor authentication (MFA) for access control.
Encrypt sensitive data and secure backups.

4.3. Employee Training and Awareness

Conduct cybersecurity awareness programmes.
Simulate phishing attack exercises to educate employees.

4.4. Adopt a Zero-Trust Security Model

Restrict access based on the principle of least privilege.
Monitor and log all user activities.

4.5. Incident Response and Recovery Plan

Establish a cyber incident response team.
Maintain regular data backups to mitigate ransomware attacks.
Have a business continuity plan in place.

4.6. Vulnerability Assessment and Penetration Testing

Implement a thorough Vulnerability Assessment (VA) throughout the organisation.
Ensure a standard Vulnerability Management (VM) is monitored by C-Level Executives.
Have a solid continuous Penetration Testing (PT) before the product launches and after the launch.

How ‘Secure CEO as a Service’ by Krishna Gupta Comes to the Rescue for MSMEs in Securing Their Risks

In today’s fast-evolving digital landscape, MSMEs are facing an ever-growing number of cyber risks. From data breaches to ransomware attacks, the threats are becoming increasingly complex and damaging. With limited resources, many businesses find it difficult to implement comprehensive security measures. This is where “Secure CEO as a Service” by Krishna Gupta steps in, offering a game-changing solution for MSMEs to effectively manage their cybersecurity risks without the need for an expensive in-house team.

The Need for Securing Risks in MSMEs

For most MSMEs, cybersecurity isn’t just about defending against external threats—it’s also about mitigating risks that could jeopardise their business continuity. With cybercrime on the rise, protecting customer data, intellectual property, and operational integrity has never been more critical. A data breach or cyber attack could result in significant financial loss, damaged reputation, and even legal consequences. Unfortunately, without expert guidance, many MSMEs are ill-equipped to handle such risks, which is why “Secure CEO as a Service” is so crucial.

How ‘Secure CEO as a Service’ Helps MSMEs Secure Their Risks

Expert-Led Risk Assessment and Security Strategy Development
- Risk Assessment: Krishna Gupta, with over 22+ years of cybersecurity expertise, conducts thorough risk assessments for MSMEs. This allows businesses to identify their specific vulnerabilities and evaluate the risks they face in the digital world.
- Tailored Cybersecurity Strategy: Based on the risk assessment, a customised security plan is created to mitigate risks effectively. Whether it’s protecting customer data, securing financial transactions, or preventing website downtime, the security plan is tailored to the unique needs of the business.
Proactive Threat Detection and Mitigation
- Real-Time Monitoring: Cyber threats often don’t give any warning before they strike. “Secure CEO as a Service” offers 24/7 monitoring to detect unusual activity across your network, systems, and website, ensuring prompt action before an attack escalates.
- Incident Response: In the event of a cyber attack, immediate response is critical. The service ensures that attackers are thwarted as soon as they attempt to breach the system, preventing data loss or operational disruptions.
Incident Recovery and Business Continuity Planning
- Ransomware Recovery: If an MSME falls victim to a ransomware attack, “Secure CEO as a Service” provides swift recovery solutions, ensuring that systems are restored with minimal downtime. This service allows businesses to focus on continuity rather than scrambling to fix issues.
- Business Continuity Plans (BCP): “Secure CEO as a Service” helps MSMEs prepare for worst-case scenarios with BCPs, ensuring that even in the event of a significant breach or attack, the business can quickly return to operational normalcy.
Ongoing Training and Awareness
- Employee Cybersecurity Training: One of the biggest threats to businesses today is human error—employees falling for phishing scams or weak passwords. With “Secure CEO as a Service”, businesses receive tailored training to help employees identify cyber threats and implement safe online practices.
- Continuous Learning: The landscape of cyber threats is always evolving. Krishna Gupta ensures that businesses remain up-to-date on the latest trends in cybersecurity, empowering them to adapt their security measures in line with emerging threats.
Cost-Effective Security Solutions for MSMEs
- Affordable Access to Top-Tier Expertise: Many MSMEs cannot afford a full-time CISO or dedicated IT security team. “Secure CEO as a Service” offers an affordable and flexible alternative, providing access to expert cybersecurity leadership on demand, as and when needed. This allows MSMEs to stay protected without breaking the bank.
Compliance with Regulations and Standards
- As cybersecurity regulations become more stringent, “Secure CEO as a Service” ensures that MSMEs comply with the latest laws and industry standards (e.g., GDPR, PCI DSS). This helps avoid potential legal liabilities and penalties while also building trust with customers and stakeholders.

The Result: A Holistic Approach to Securing MSME Risks

By partnering with “Secure CEO as a Service”, MSMEs can transform their approach to cybersecurity. Instead of reacting to threats after the damage is done, businesses can actively prevent, detect, and mitigate risks. Krishna Gupta’s expertise enables MSMEs to implement a multi-layered security strategy, protecting both their assets and reputation while keeping operations running smoothly.

With rising cyber threats targeting Indian businesses, MSMEs must take a proactive approach to cyber risk management. With “Secure CEO as a Service”, MSMEs now have the opportunity to defend themselves against evolving risks, secure their data, and maintain customer trust—all without the need for a full-time security team.

OMVAPT and FixARisk: Proactive and Dynamic Solutions to Secure Your Business

In addition to “Secure CEO as a Service” by Krishna Gupta, OMVAPT and FixARisk offer cutting-edge solutions that enable MSMEs to stay ahead of cyber threats and ensure robust protection of their digital assets.

OMVAPT: Proactively Discovering Security Risks Before Adversaries Can

OMVAPT provides continuous Vulnerability Assessment and Penetration Testing (VAPT) as a Service, helping businesses identify potential security risks before malicious actors can exploit them. The approach is proactive and ongoing, ensuring that vulnerabilities are discovered, assessed, and mitigated on a continuous basis.

Key Benefits of OMVAPT:

Constant Vigilance: OMVAPT offers continuous monitoring of networks and systems, identifying vulnerabilities and weak spots before they can be exploited by attackers.
Comprehensive Risk Assessment: Through regular VAPT, OMVAPT provides businesses with an in-depth understanding of their digital security posture, enabling informed decision-making on where to focus their cybersecurity efforts.
Tailored Remediation Plans: OMVAPT doesn’t just identify risks—it also provides actionable plans to resolve vulnerabilities, ensuring businesses can address security gaps without delay.
Real-Time Threat Intelligence: OMVAPT equips MSMEs with real-time insights into emerging threats, allowing them to stay one step ahead of adversaries and ensure business continuity.

With OMVAPT’s VAPT as a Service, MSMEs gain access to the same level of sophisticated cybersecurity testing used by large enterprises, but at a cost-effective and scalable model tailored to the needs of smaller businesses. This ensures that security becomes an ongoing, integral part of business operations—rather than a reactive measure after an attack.

FixARisk: Fixing Security Vulnerabilities On-the-Go with Crowd-Sourced Expertise

Once vulnerabilities have been identified, FixARisk steps in to provide an innovative solution for addressing security gaps. By leveraging crowd-sourced expertise, FixARisk allows businesses to quickly fix vulnerabilities on-the-go, tapping into a vast pool of security professionals who collaborate to provide real-time fixes and updates.

Key Benefits of FixARisk:

Instant Remediation: FixARisk provides on-the-go fixes, enabling MSMEs to address vulnerabilities immediately, without having to wait for lengthy remediation processes.
Crowd-Sourced Expertise: With a global community of cybersecurity professionals, FixARisk taps into a wealth of knowledge to offer the most effective and innovative solutions to security challenges.
Cost-Effective Solutions: FixARisk offers affordable vulnerability fixes, allowing MSMEs to quickly resolve issues without the need for in-house resources or costly external consultants.
Continuous Updates: As new vulnerabilities and threats emerge, FixARisk ensures that businesses stay protected by providing continuous updates and proactive solutions.

Together, OMVAPT and FixARisk Offer a Complete Cybersecurity Ecosystem for MSMEs

The combination of OMVAPT’s proactive VAPT service and FixARisk’s crowd-sourced remediation creates a dynamic cybersecurity ecosystem for MSMEs. By identifying vulnerabilities before attackers can exploit them and fixing them quickly with expert help, MSMEs can protect their assets, customer data, and digital operations in real-time.

This holistic approach to cybersecurity ensures that MSMEs are not only securing their business against current threats but are also building a resilient cybersecurity framework that can adapt to the evolving landscape of cyber risks. Whether it’s discovering risks with OMVAPT or fixing them instantly with FixARisk, businesses are always a step ahead of adversaries.

Securing Your Business in an Evolving Threat Landscape

The growing volume and sophistication of cyber threats make it essential for MSMEs to implement a proactive and dynamic cybersecurity strategy. By partnering with OMVAPT, FixARisk, and “Secure CEO as a Service”, MSMEs can ensure that they are not just responding to threats, but actively working to prevent them and secure their digital future.

These solutions offer cost-effective, scalable, and cutting-edge cybersecurity strategies that empower MSMEs to defend their operations, protect sensitive data, and maintain business continuity without the burden of large-scale infrastructure investments. Now more than ever, MSMEs need to take cybersecurity seriously, and with the right partners, they can thrive in the face of rising digital threats.

Final Thoughts

The rising cyber threats in India, with 26% more attacks than the global average, pose a significant challenge for MSMEs. As cybercriminals become more sophisticated, it is imperative for MSMEs to adopt proactive security measures. Investing in cyber resilience not only protects business assets but also enhances customer trust, regulatory compliance, and long-term sustainability.

By implementing robust cybersecurity strategies, Indian MSMEs can thrive in the digital economy while mitigating the risks of cyberattacks. Cybersecurity is no longer an option—it is a business necessity.

The rising number of attacks on Indian businesses is a wake-up call.
MSMEs must proactively strengthen cybersecurity to ensure business continuity.
Simple yet effective security measures can prevent major financial and reputational losses.