Cyber threats are growing, and endpoint devices are prime targets. Here’s what you need to know:
- Key Risks: Endpoint malware, phishing, unpatched vulnerabilities, ransomware, and insider threats.
- Statistics: 70% of breaches originate from endpoints; phishing is linked to 90% of breaches; ransomware costs reached $42 billion in 2024.
- Challenges: Remote work, BYOD policies, and increasing device numbers expand vulnerabilities.
- Solutions: Multi-layered defenses, AI-powered tools, employee training, and fractional CTO services for tailored guidance.
Takeaway: SMBs, in particular, must invest in modern tools and expert leadership to protect data, reduce costs, and maintain trust.
Endpoint Security Best Practices to Protect Corporate Data
Phishing and Credential Theft
As the number of devices connecting to networks grows, phishing has become one of the primary ways attackers infiltrate systems. In fact, phishing is linked to over 90% of data breaches. This type of attack uses sophisticated social engineering techniques to trick individuals into sharing sensitive credentials, opening the door for network intrusions. Since the launch of ChatGPT, phishing attacks have skyrocketed by an astounding 4,151%.
Attackers are capitalizing on user behavior to identify the easiest data targets. They’ve evolved far beyond the basic email scams of the past, employing multi-faceted attacks that hit endpoints through various channels simultaneously.
Common Phishing Methods and Risks
Phishing comes in many forms, but email phishing, spear phishing (targeting specific individuals), and whaling (focusing on high-level executives) are some of the most common methods. These attacks often use messages that appear legitimate, tricking recipients into handing over sensitive information.
Business Email Compromise (BEC) has emerged as a particularly damaging threat, especially for small and medium-sized businesses. In 2024, 64% of businesses reported experiencing BEC attacks, with the average financial loss per incident hitting $150,000. One notable example is the 2014 Scoular case, where a fraudulent email, allegedly from the CEO, led to a $17.2 million wire transfer to an offshore account before the fraud was detected.
But phishing isn’t limited to email anymore. Attackers are diversifying their methods:
- Voice phishing (vishing): Threat actors impersonate officials or executives over the phone, with 30% of organizations reporting such incidents.
- SMS phishing (smishing): Text messages containing malicious links are used to lure victims.
- QR code phishing (quishing): This tactic, which involves fake QR codes redirecting users to fraudulent login pages, has seen a 25% year-over-year increase.
Phishing attacks have also expanded to platforms like Slack, Teams, and social media. Around 40% of phishing campaigns now bypass traditional email channels, targeting users where they may be less vigilant.
The focus on stealing credentials has become especially intense. Approximately 80% of phishing campaigns now aim to capture login details, particularly for cloud-based services. The dark web currently hosts over 15 billion stolen credentials, highlighting just how valuable this data has become.
Artificial intelligence has made these attacks even more dangerous. AI enables attackers to craft more convincing phishing emails, deepfake voice calls, and other impersonation techniques that can evade traditional detection systems.
"In the near future, AI will power significantly more phishing attacks – everything from text-based impersonations to deepfake communications will become cheaper, more convincing, and more popular with threat actors." – Mika Aalto, Co-Founder and CEO, Hoxhunt
Given the variety and sophistication of phishing methods, combating these threats requires a layered defense strategy.
How to Prevent Phishing Attacks
Protecting against phishing involves a multi-layered defense strategy that combines advanced technology with human training. The goal is to address both technical vulnerabilities and the human errors that phishing exploits.
Email filtering systems are a critical first step, but they must be paired with strict verification protocols for financial transactions and sensitive data requests. Tools like domain-based message authentication and encryption can help prevent email spoofing and verify legitimate senders.
Multi-factor authentication (MFA) is another essential safeguard. With credential phishing now surpassing ransomware as the most common method of breaching networks, MFA acts as a safety net when passwords are compromised.
Employee education is equally important. Training programs should cover all potential attack vectors, including the risks of QR code phishing. Employees should be encouraged to avoid scanning QR codes from unverified sources. As phishing attacks increasingly target mobile devices, having robust mobile security policies is also crucial.
Phishing simulations are an effective way to prepare employees for real-world attacks. These exercises should cover various channels, including voice calls, text messages, and social media. Realistic scenarios that mirror current attack trends help employees recognize and respond to threats more effectively.
Verification protocols should become standard practice for handling sensitive requests. For example, employees should confirm the identity of senders through separate communication channels before acting on urgent financial or credential-related requests. This simple step could have prevented the $17.2 million loss in the Scoular case and many similar incidents.
Organizations must also establish clear mobile security policies, such as restricting downloads from unverified sources. Since around 80% of phishing websites now use HTTPS, employees can no longer rely solely on security indicators to identify legitimate sites.
AI has made phishing attacks more sophisticated, but it can also be a powerful tool for defense. Properly implemented, AI can help automate threat detection and provide insights that reduce phishing risks.
"AI is fueling a new era of social engineering tactics, but it can also be the white hat that helps us fight back. This report illustrates how AI-driven insights and automation can directly correlate higher employee engagement to reduced phishing risk." – Pyry Åvist, Co-Founder and CTO, Hoxhunt
The sharp rise in credential phishing – up 703% in the second half of 2024 – shows that traditional security measures are no longer enough. Organizations need a comprehensive approach that tackles both the human and technical aspects of phishing to protect their networks and data effectively.
Unpatched Vulnerabilities and Zero-Day Exploits
Unpatched vulnerabilities are a serious concern in the current endpoint security landscape. These flaws in software or operating systems, when left unresolved, create entry points for attackers – especially on endpoints like laptops, smartphones, and servers. In fact, IDC reports that more than 70% of successful breaches now originate at endpoints, with outdated systems being a primary target.
It’s important to distinguish between unpatched vulnerabilities – known flaws for which patches are available – and zero-day exploits, which exploit previously unknown vulnerabilities.
While phishing relies on social engineering, unpatched vulnerabilities and zero-day exploits strike at the heart of system integrity, collectively expanding the threat landscape.
The financial stakes are high. In 2023, the average cost of a data breach climbed to $9.48 million, with many of these attacks stemming from endpoint vulnerabilities. This creates significant risks for businesses of all sizes, but small and medium-sized enterprises (SMBs) are particularly vulnerable due to limited security resources.
Vulnerability Management Challenges
SMBs face unique hurdles in keeping up with patching. Managing numerous endpoints across distributed teams makes it tough to monitor and secure every connected device. With the number of devices per user increasing, attackers have more opportunities to exploit systems that haven’t been updated.
Many SMBs operate with limited IT staff, often relying on a single IT professional or outsourced support. This makes it difficult to maintain real-time oversight of all endpoints. To make matters worse, modern IT environments are increasingly complex, involving multiple operating systems, applications, and devices from different vendors. Remote work and Bring Your Own Device (BYOD) policies further complicate the management of assets and the deployment of patches.
Operational disruptions are another concern. SMBs often delay patching out of fear that updates could interrupt critical workflows, unintentionally leaving systems exposed for longer periods. Without tools to maintain a complete inventory of assets, organizations risk overlooking devices or shadow IT systems, often discovering them only after a breach.
Risk Reduction Methods
To tackle these challenges, businesses need a structured and automated approach to patching and monitoring. Addressing unpatched vulnerabilities effectively requires blending automation with rapid response strategies and continuous monitoring. Automated patch management tools simplify the process by scheduling, deploying, and verifying patches through centralized dashboards. This reduces human error and ensures that critical updates are prioritized.
Rapid patching protocols are also essential. Clear responsibilities, timelines, and post-deployment verification steps help ensure patches are applied effectively. Risk-based prioritization – focusing on factors like exploit availability, business impact, and asset importance – can help SMBs allocate resources to the most urgent vulnerabilities.
Endpoint Detection and Response (EDR) platforms add another layer of protection by providing real-time monitoring, threat detection, and automated responses. These tools can isolate compromised endpoints and enable fast remediation, even before patches are available. Regular vulnerability scans are equally critical, helping organizations quickly identify unpatched systems and make informed decisions.
For zero-day vulnerabilities, where no patches exist, behavioral detection and threat intelligence are key. Educating employees – especially in remote or BYOD setups – is just as important. Workers need to understand the risks of outdated software and the importance of timely updates.
SMBs can also benefit from external expertise. Partnering with a fractional CTO through CTOx, for example, can help design and implement tailored vulnerability management strategies that align with their specific needs and resources.
Ransomware and Malware Threats
Ransomware and malware represent some of the most pressing challenges to endpoint security today. These malicious programs are designed to encrypt, steal, or destroy data, often bringing business operations to a grinding halt. The financial toll is staggering – global ransomware losses hit $42 billion in 2024, with the average ransom demand soaring to $2.73 million.
Cybercriminals have become more advanced, employing increasingly sophisticated methods. For example, 93% of ransomware incidents involve Windows-based executables, and organizations targeted by these attacks face an average recovery time of 24 days. This shifting landscape underscores the need for defenses that can keep up with these evolving threats.
Ransomware Types and Business Impact
Ransomware attacks are tailored to inflict maximum damage and extract significant financial gain. One particularly damaging type is multi-extortion ransomware, which not only encrypts files but also steals sensitive data, threatening to release it publicly unless a ransom is paid. Another stealthy variant, fileless malware, operates within legitimate applications already installed on the system, targeting user credentials and bypassing traditional antivirus solutions. Adding to the problem, the rise of Ransomware as a Service (RaaS) has enabled less experienced cybercriminals to launch sophisticated attacks, increasing the overall volume of incidents.
Real-world cases highlight the severity of these threats. In 2023, DragonForce targeted the Ohio Lottery, compromising the data of around 500,000 individuals, including employees and customers. In 2024, a ransomware attack on a supplier for the NHS, attributed to the Qilin group, tragically contributed to a patient’s death and caused "low harm" to 170 others. During Q2 2025, industries such as healthcare, technology, legal, finance, and services were heavily targeted, with the United States being the primary focus of these attacks.
These examples illustrate the devastating consequences of ransomware, making it clear why businesses need to prioritize robust and strategic defenses.
Protection Methods
Defending against ransomware and malware requires a multi-layered approach that goes beyond traditional antivirus tools. Endpoint Detection and Response (EDR) systems are essential, offering real-time monitoring and automated responses to isolate compromised endpoints before malware can spread. Many organizations also use Network Detection and Response (NDR) and Security Information and Event Management (SIEM) systems alongside EDR to gain comprehensive visibility and control across their networks.
Advanced threats like fileless malware demand proactive measures like behavioral analysis and threat hunting, as these methods can identify attacks that signature-based tools might miss. Multi-Factor Authentication (MFA), particularly phishing-resistant MFA for administrators, is another critical safeguard against credential theft. Network segmentation can further contain malware by isolating different areas of the network, preventing infections from spreading to critical systems.
Backup and recovery planning remains a cornerstone of ransomware defense. Having offline, encrypted backups that are regularly tested ensures that data remains accessible even if primary systems are compromised. Additionally, implementing Identity and Access Management (IAM) programs with a least-privilege approach can minimize the damage if endpoints are breached.
Employee training plays a vital role in preventing ransomware attacks. Security Awareness Training helps staff recognize phishing and social engineering tactics often used as entry points for these threats. For smaller businesses with limited resources, collaborating with experienced technology leaders, such as fractional CTOs through services like CTOx, can provide tailored guidance to design effective security strategies that align with operational needs and budgets.
Regular vulnerability assessments and prompt patching are essential to eliminate exploitable weaknesses. Organizations should also focus on hardening endpoints and restricting access to critical systems, such as virtualization management platforms. Finally, developing and frequently testing incident response plans ensures a swift and coordinated reaction when an attack occurs, reducing downtime and limiting damage.
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Insider Threats and Data Loss
While external cyberattacks often grab headlines, internal vulnerabilities pose equally serious risks to endpoint security. In fact, insider threats are among the most costly and challenging risks organizations face today. In 2024, the average cost of an insider threat incident reached $4.99 million per breach. Even worse, these breaches take an average of 81 days to detect, giving malicious actors ample time to cause significant harm.
Insider threats account for a staggering 60% of data breaches, and the number of such incidents has surged by 47% since 2018. With this increase, the financial toll has also grown – costs have risen by 31% during the same period. On average, organizations now spend $17.4 million annually managing insider threat incidents.
"Insider threat is the potential for an insider to use their authorized access or understanding of an organization to harm that organization."
- Cybersecurity and Infrastructure Security Agency (CISA)
Types of Insider Threats
Insider threats typically fall into two main categories, each presenting its own challenges:
- Malicious insiders: These are employees who intentionally misuse their access for personal gain, revenge, or financial benefit. Their actions often involve data theft, credential abuse, or deliberate tampering with systems.
- Negligent insiders: These threats stem from employees who unintentionally compromise security due to human error. Examples include mishandling sensitive data, using weak passwords, or falling for social engineering scams. While negligent insiders account for 75% of insider-related incidents, malicious insiders tend to cause higher costs per case.
Recent cases highlight the severity of insider threats. In 2023, two former Tesla employees leaked sensitive personal data affecting over 75,000 individuals. In another instance, employee negligence at MedStar Health in 2024 allowed an external attacker to expose the personal information of more than 183,000 patients. The tech sector has also seen its share of incidents: a Yahoo research scientist downloaded proprietary data after accepting a job offer from a competitor in 2022, and a former Proofpoint employee stole sales data before joining a rival company in 2021. Perhaps most notably, a former AWS engineer exploited insider knowledge in 2019 to access Capital One servers, exposing sensitive data for 100 million individuals.
Warning signs often precede insider threats. Behavioral red flags include negative attitudes toward colleagues, frequent policy violations, or discussions of leaving the company. On the digital side, unusual data downloads, accessing information outside of job responsibilities, or irregular data access patterns can signal trouble.
How to Address Insider Threats
Effectively addressing insider threats requires a mix of technology, processes, and employee awareness. Tools like User Behavior Analytics (UEBA) play a key role by identifying unusual behavior that may indicate malicious or negligent activity.
Continuous, real-time monitoring combined with session recording and regular audits can help organizations track and remove unnecessary access rights. Following the principle of least privilege is critical: employees should only have access to the resources necessary for their job – and nothing more. Strong access controls, thorough background checks, and secure off-boarding processes further strengthen defenses.
Employee training programs are equally important. By educating staff on the risks of insider threats and encouraging them to report suspicious behavior, organizations can create a proactive security culture.
For smaller businesses that lack dedicated security teams, partnering with experienced technology leaders through CTOx can offer valuable support. Fractional CTOs can help design monitoring systems, implement access controls, and develop policies tailored to an organization’s specific risks and needs. These insider threat strategies work hand-in-hand with broader endpoint security measures, creating a comprehensive defense across all areas of the organization.
Technology Leadership for Endpoint Protection
With the rise of increasingly sophisticated cyber threats, protecting endpoint devices demands strategic leadership that aligns security investments with broader business objectives. Endpoint devices are often the first line of attack, fueling a market that surged from $11 billion in 2022 to a projected $36.5 billion by 2033. This growth comes even as many companies are tightening their IT budgets. Without a clear strategy, businesses risk making fragmented and underfunded security decisions, leaving critical vulnerabilities exposed. This is where fractional CTO services step in, offering the strategic oversight needed to strengthen endpoint defenses – without the expense of a full-time executive.
Custom Security Plans
Fractional CTOs bring a tailored approach to endpoint protection. They evaluate your organization’s unique risk profile and create security strategies that fit both your operational needs and budget. Instead of relying on one-size-fits-all solutions, they focus on crafting plans that address your specific vulnerabilities.
These professionals, who typically charge between $10,000 and $25,000 per month, deliver cost-effective strategies that prioritize prevention. This proactive mindset can save businesses significant costs down the line. For instance, fixing a bug early in development might cost around $100, but that same issue could escalate to $1,500 during quality assurance testing or even $10,000 if discovered in production.
"A fractional CTO helps your team manage vendor relationships by negotiating contracts and ensuring that your company receives optimal value from the services and technology that it invests in." – BD Emerson
For businesses seeking flexibility, services like CTOx offer various engagement models. The CTOx Engaged plan, at $7,000 per month, provides weekly strategic guidance. The CTOx Half-Day Consult, priced at $5,000 per month, includes focused four-hour sessions with actionable takeaways. For lighter involvement, the CTOx Advisor plan, at $3,000 per month, offers sprint planning and ongoing advisory support.
Continuous Monitoring and Improvement
Creating a security plan is only the beginning. To stay ahead of evolving threats, continuous monitoring and regular updates are essential. Endpoint security is not a “set it and forget it” task – it requires constant vigilance and adaptation. Fractional CTOs shine in this area, ensuring that your defenses evolve alongside your business and the threat landscape.
Proper configuration and real-time monitoring are critical. As Amy Cohagan, Senior Incident Response Analyst at Coalition, highlights:
"In many cases, we’ve seen that our clients have endpoint detection and response (EDR) deployed but not configured properly, and those tools can fail. When you have a real-time team supporting your endpoint detection tools, it can reduce the impact a cyber incident has on your organization."
Fractional CTOs work closely with existing security teams or CISOs to refine incident response plans, ensuring your organization is prepared for breaches. They also advocate for security awareness training, which has been shown to reduce cyber risks by 60% within a year.
The improvement process doesn’t stop there. Regular audits, assessments of new threats, and evaluations of emerging technologies are all part of the equation. With digital transformation spending expected to reach $2.5 trillion in 2024 and surpass $3.9 trillion by 2027, fractional CTOs ensure that new technologies align with security policies while avoiding new vulnerabilities.
To fully benefit from fractional CTO services, businesses should establish clear communication channels, define measurable security goals, and schedule periodic reviews to track progress and adjust strategies as needed. This collaborative approach leverages the fractional CTO’s broad expertise to address complex challenges while maintaining the flexibility to scale their involvement as your needs evolve.
The result? A security strategy that grows with your business while staying ahead of emerging threats. By focusing on proactive measures rather than reacting to problems after they occur, fractional CTOs help minimize disruptions and keep your operations running smoothly.
Key Takeaways for SMBs
Small and medium-sized businesses (SMBs) are grappling with major endpoint security challenges. In 2023 alone, 73% of SMBs reported breaches, with average financial losses climbing to $25,000 per incident. These numbers highlight the pressing need for businesses to adopt proactive strategies to safeguard their endpoints. The good news? These challenges are manageable with the right tools, planning, and leadership.
The foundation of effective endpoint protection lies in proactive planning, not scrambling to react after an incident. SMBs that prioritize strategic technology leadership and adopt automated security solutions can significantly reduce their risk exposure while keeping operations running smoothly. Combining modern Endpoint Detection and Response (EDR) tools with expert guidance creates a scalable and reliable defense system that grows alongside the business.
Next Steps for Businesses
To stay ahead of cyber threats, SMBs should consider deploying AI-powered, automated EDR solutions. These tools are particularly effective during off-hours, providing protection even with limited staff availability. When evaluating security tools, businesses should focus on how well they integrate with existing systems, such as firewalls and Security Information and Event Management (SIEM) platforms, to build a seamless and comprehensive defense. While pricing is a factor, prioritizing integration and adaptability will deliver better results in the long run.
Ease of use is another critical consideration. Solutions with intuitive interfaces can enhance team efficiency and reduce the learning curve. For example, an Operations Manager at Proton Dealership IT shared this feedback about using SentinelOne:
"The detection rate for SentinelOne has been excellent, and we have been able to resolve many potential threats with zero client impact. The ability to deploy via our RMM allows us to quickly secure new clients and provides peace of mind."
For SMBs without dedicated security teams, Managed Detection and Response (MDR) services offer a practical alternative. These services provide round-the-clock monitoring and response, ensuring that threats are addressed promptly – even outside regular business hours. Beyond selecting the right tools, having strategic guidance is essential to maximize the return on these investments.
How Fractional CTOs Help
As mentioned earlier, aligning security investments with clear business objectives is critical. Fractional CTOs specialize in this alignment, helping SMBs develop tailored cybersecurity strategies that fit their budgets while ensuring compliance with industry regulations. While hiring a full-time CTO can cost over $150,000 annually, fractional CTOs offer more affordable options, with flexible retainers ranging from $2,000 to $10,000 per month.
These professionals bring an outsider’s perspective to identify inefficiencies and recommend targeted solutions that deliver maximum returns on security investments. Their value goes beyond addressing immediate threats. As The CTO Club explains:
"Fractional CTOs are a secret weapon for startups and SMEs aiming to disrupt traditional markets. By leveraging their extensive experience, strategic vision, and ability to implement cutting-edge technologies on a flexible basis, these professionals enable smaller companies to punch well above their weight."
For businesses earning at least $1 million annually, CTOx offers structured engagement plans designed to meet varying needs. For example:
- The CTOx Engaged plan ($7,000/month) includes weekly strategic guidance.
- The CTOx Half-Day Consult ($5,000/month) provides focused four-hour sessions with actionable deliverables.
- The CTOx Advisor plan ($3,000/month) offers ongoing support, including sprint planning and unlimited email consultations.
FAQs
What are the most effective ways to prevent phishing attacks?
Preventing phishing attacks hinges on two key elements: employee awareness and strong technical measures. One of the most effective steps is conducting regular training sessions to teach employees how to spot phishing attempts. This includes recognizing red flags like suspicious emails, fraudulent login pages, or unusual requests. Informed employees act as a critical barrier against these threats.
On the technical side, deploying advanced email filtering tools can stop malicious messages before they even reach an inbox. These tools are designed to catch harmful attachments, detect suspicious links, and flag unusual sender behaviors. When you combine ongoing employee education with effective technical defenses, the chances of falling victim to phishing attacks drop significantly.
How can small and medium-sized businesses protect against unpatched vulnerabilities and zero-day exploits with limited resources?
Small and medium-sized businesses can protect themselves from unpatched vulnerabilities and zero-day exploits by using effective endpoint protection tools like antivirus software and intrusion detection systems. These tools are designed to detect and stop malicious activities before they cause significant harm.
Another critical step is to establish a reliable patch management process. Make it a priority to update all software and systems as soon as patches are released. This approach minimizes the window of opportunity for attackers to exploit vulnerabilities. Pairing regular updates with proactive system monitoring can go a long way in reducing risks, even for businesses operating on tight budgets.
By concentrating on these practical measures, businesses can boost their security without stretching their financial or operational resources too thin.
How do fractional CTOs improve endpoint security, and how is their role different from a full-time CTO?
Fractional CTOs play a crucial role in improving endpoint security, offering expert leadership tailored to a company’s unique needs. Their primary focus is on aligning security strategies with business objectives, implementing strong security frameworks, and addressing risks before they become major issues. This makes them an excellent choice for small to mid-sized businesses aiming to bolster their cybersecurity without the expense of hiring a full-time executive.
Unlike traditional CTOs, fractional CTOs work on a part-time basis, giving businesses access to high-level technology expertise without the cost of a permanent hire. Their strategic methods provide scalable and focused solutions that adapt as the company grows, delivering both cost savings and expert advice to tackle critical security concerns.
