BRIDGING THE CYBERSECURITY GAP: HOW PEOS CAN PROTECT SMBS AND THEIR PEOPLE

Cybersecurity is no longer just a concern for big business or IT departments—it’s become a deeply personal issue that touches the lives of employees everywhere. Small and mid-sized businesses (SMBs) are increasingly finding themselves caught in the crosshairs of cybercriminals, not just because of the data they hold, but also due to the vulnerabilities of their people.

Many SMB employees use the same devices and networks for work and personal tasks. Without the right identity and digital protection in place, a simple phishing email or exposed password can lead to devastating identity theft. When employees are affected, the emotional and financial toll quickly spills into the workplace, affecting performance, morale, and even retention. This is where PEOs have a powerful opportunity—by providing identity protection and cybersecurity as a benefit, they can help safeguard employees in their personal lives, while also creating a more resilient workplace.

THE HIGH COST OF CYBER RISK FOR SMBs

While headlines often highlight the organizational impact of cyberattacks, it’s the personal consequences for individuals that are often most damaging—and most overlooked. For example, 46% of all cyberattacks target businesses with fewer than 1,000 employees. Yet, 47% of businesses with fewer than 50 employees don’t allocate any budget to cybersecurity or identity protection.

What does this mean for employees? It means that when an SMB experiences a breach, it’s often the employee’s sensitive personal information that’s put at risk. And with limited infrastructure to detect or respond to breaches quickly, employees may not find out until the damage is done.

In 2024 alone, the IRS flagged over $16.5 billion in tax refunds for suspected identity fraud—much of it stemming from exposed personal data. For an SMB, one employee’s identity theft can cause weeks of missed work, HR involvement, and distraction. Multiply that across a team, and the organizational ripple effect becomes clear.

THE HUMAN COST OF IDENTITY THEFT

Identity theft is not just an inconvenience—it’s a life-altering experience. In the U.S., one in three consumers has been a victim. And after a data breach, victims are 38 times more likely to experience identity theft.

For employees, the fallout includes hours of phone calls, legal disputes, credit damage, and emotional stress. It often affects their ability to focus, take time off work, or handle financial responsibilities.

SMBs are often unequipped to help manage the recovery process, leaving employees to navigate the chaos alone. This adds strain not just to the individual, but to managers and HR teams. Identity protection as a benefit can significantly reduce this burden by providing employees with expert help and resources before, during, and after an incident.

WHY SMBs ARE ESPECIALLY VULNERABLE

Quite often, an SMB’s risk of cyberattack lies in the everyday digital habits of their workforce. Employees may reuse passwords across work and personal accounts, click on phishing emails, or use unsecured Wi-Fi without thinking twice. And many use a single device for both work and personal life, making their device an easy target for cybercriminals.

What amplifies this risk is a general lack of formal training or awareness programs on cyber hygiene. Without structured guidance, employees are left to their own devices—literally and figuratively. And without identity protection benefits, they have no safety net if (or when) something goes wrong.

Personal cybersecurity might seem like a distant concern to many SMB leaders—but when their employees suffer, so does the business. Lost productivity, personal emergencies, and low morale are just some of the hidden costs that can impact employees, build over time, and cause business disruptions.

PEOs: BRIDGING THE GAP WITH PROACTIVE PROTECTION

This is where PEOs can play a transformative role. By including cybersecurity and identity protection as part of a comprehensive benefits package, PEOs are addressing one of today’s most pressing personal security issues.

For employees, this means peace of mind. For SMBs, it means a more focused, supported, and loyal workforce. PEOs adding identity and digital protection allows them to extend that support into employees’ personal lives in a meaningful, practical way. This positions the PEO not just as a service provider, but as a partner in well-being.

UNIVERSAL PROTECTION FOR A DIVERSE WORKFORCE

Cybercriminals don’t care about demographics – identity theft and other cyberthreats affect employees from all walks of life. In this sense, identity protection is a truly universal benefit.

Remote workers, hourly staff, parents, and recent graduates are all vulnerable in different ways. By offering a benefit that helps protect them outside of work, employers show that they value their people as whole individuals—not just workers. This can improve retention, reduce burnout, and enhance employer branding across the board.

Especially in today’s climate, where employee experience matters more than ever, offering identity protection can make a big difference in attracting and retaining top talent.

PRACTICAL TIPS FOR SAFER ONLINE PRACTICES

While identity protection services are valuable, education is just as important. Here are a few simple practices PEOs can help SMBs promote among their employees:

• Use a password manager to create and store strong, unique passwords
• Enable two-factor authentication (2FA) on email, banking, and key business platforms
• Avoid using public Wi-Fi for checking personal accounts or financial tasks
• Pause and verify emails before clicking links or downloading attachments

By combining education with access to identity protection tools, PEOs empower employees to take charge of their own security.

IDENTITY PROTECTION AND CYBERSECURITY AS A CORE BENEFIT OF THE FUTURE

The line between work life and personal life continues to blur—and so does the responsibility to protect employees in both. While large companies may have the luxury of cybersecurity departments, SMBs often rely on trusted partners to deliver critical services. That’s why PEOs are in a perfect position to lead the way.

By offering identity protection as a core benefit, PEOs help shield employees from the rising tide of digital threats and offer a sense of control in an increasingly unpredictable online world. The result? A more resilient workforce, a more attractive benefits package, and a stronger, more supportive business environment for all.