Top 5 IT Nightmares Every Startup Should Fear (and How to Avoid Them)

Forget spooky legends; the real IT nightmares that keep startup founders awake are cyber threats. The truth is, Small and Midsize Businesses (SMBs) are prime targets for attackers. Criminals know that startups often lack the dedicated IT staff, deep security knowledge, or resources of larger corporations. In fact, 43% of all cyberattacks target small businesses.

Business leaders hear about a dizzying array of software vulnerabilities and misconfigurations. However, there’s a lack of evidence-based strategies for cutting through the noise and focusing on what actually moves the security needle, especially for under-resourced SMBs.

As part of their mission to protect the unprotected, our partners at Coalition share their expert analysis and insights into the ransomware playbook through the Cyber Threat Index 2025. This report provides the necessary focus by examining common attack tactics.

We’ve broken down the 5 biggest IT challenges—or “nightmares”—plaguing growing companies, along with clear, evidence-based strategies to avoid them.

The Nightmare of Stolen Credentials (The Phantom Access)

Imagine an attacker logging into your network one day as a legitimate employee, raising no immediate red flags. How? With a stolen credential. 

This isn’t a complex, nation-state tactic; it’s the single most common method of initial compromise. Compromised credentials are the most common initial access vector in ransomware claims, accounting for 47% of those with a known IAV.

This danger is amplified when targeting critical systems:

• Remote Desktop Protocol (RDP) Panic: Over 5 million systems expose Microsoft Terminal Services (used for RDP) to the internet. An exposed RDP was the initial access vector (IAV) in almost one-fifth (18%) of ransomware claims. Attackers are constantly scanning the internet for these weak points.
• Exposed Login Panels: Most businesses (over 65%) had at least one internet-exposed web login panel at the time of applying for cyber insurance. Coalition detected over 5 million internet-exposed remote management solutions and tens of thousands of exposed login panels across the internet.

The Phantom-Proof Solution

• Mandatory Multi-Factor Authentication (MFA): MFA is non-negotiable, especially for VPN and administrative panels. A misconfigured Citrix panel exploiting the lack of MFA led to a ransomware incident that caused losses of at least $1.6 billion in 2024.
• No Exposed RDP: Do not allow RDP to be accessible over the open internet under any circumstances. Instead, use a secure VPN with MFA.

The Ransomware Attack (The Data Hostage Crisis)

The Scary Scenario

Ransomware is the embodiment of the IT nightmare. For SMBs, ransomware is uniquely devastating, as the cascading impacts disrupt supply chains and undermine societal resilience.

The majority of ransomware claims started with threat actors compromising:

• Perimeter Security Appliances: 58% of claims started by compromising devices like VPNs and firewalls.
• Remote Desktop Software (RDP): 18% of claims started via remote desktop software.

The Phantom-Proof Solution

• Monitor and Patch Perimeter Devices: Your firewalls and VPNs are your first line of defense, making them the primary target. Ensure their firmware is up-to-date.
• Robust Data Backup: An attacker who encrypts your data loses their leverage if you have complete, offline backups. If you need help securing your data and endpoints, our Managed Detection and Response (MDR) service can help.
• Review Vendor Risk: The Change Healthcare incident, which exploited an exposed Citrix login panel without MFA, highlighted how supply-chain incidents can lead to outsized losses. If you handle sensitive data, especially under regulations like HIPAA, ensure your vendors are compliant.

The Plague of Vulnerabilities (The Hole in the Digital Wall)

The Scary Scenario

A software exploit takes advantage of a vulnerability to gain access. Across all ransomware claims, software exploits were the second most frequent IAV, present in 29% of known incidents.

The volume of vulnerabilities is exploding: more than 45,000 vulnerabilities are forecasted to be published in 2025. This rate of nearly 4,000 per month is impossible for a lean startup to manage, leading to notification fatigue.

The Phantom-Proof Solution

• AI-Driven Prioritization: Don’t treat all vulnerabilities equally. Coalition’s AI-driven risk prioritization can address notification fatigue. Coalition sent Zero-Day Alerts for just 0.15% of all vulnerabilities published in the first 10 months of 2024.
• Focus on High-Risk Vulnerabilities: Prioritize vulnerabilities that are:
  1. Discovered as zero days being actively exploited in the wild.
  2. Affect perimeter security appliances that provide access to sensitive systems.
  3. Require no user interaction or authentication to gain remote code execution, elevate privileges, or extract data.
• Action on Zero-Day Alerts (ZDAs): When you receive an alert about a high-risk CVE, patch immediately or use mitigations like putting the system behind a firewall until the patch can be applied.

The Human Factor (The Accidental Open Door)

The Scary Scenario

Even the most secure technology can be undermined by human error. Social engineering, which typically involves email to communicate with victims , was the third most common IAV for ransomware. Attackers manipulate employees into:

• Installing remote access software.
• Clicking malicious links to install malware.
• Phishing them into revealing credentials.

Employees at small businesses experience 350% more social engineering attacks than those at larger enterprises.

The Phantom-Proof Solution

• Security Awareness Training (SAT): The human factor is exploited in social engineering attacks. Boost your employees’ cyber knowledge with engaging, cost-effective courses and interactive exercises to prevent employees from falling for phishing scams.
• Use the Right Tools: Compromised credentials were the most common attack vector. Mandating a secure password manager is key.

The End-of-Life Asset (The Cursed Equipment)

The Scary Scenario

End-of-Life (EOL) assets are systems for which the vendor no longer ships security updates. Operating with EOL systems, typically Windows Web or Email Servers , poses a significant risk because any newly discovered vulnerability can never be patched.

EOL assets represented 5.3% of Coalition’s security findings.

The Phantom-Proof Solution

• Plan for Hardware Lifecycle Management: You must plan for equipment replacement to avoid EOL systems. Read a proper Hardware Lifecycle Management strategy. 
• Smart IT Procurement: If a system cannot be immediately replaced, it must be removed from the open internet. We can help you build an IT Procurement strategy for your growing startup.

Transform Nightmares into Resilience

In the world of startups, security often feels like a resource drain, but it is an essential investment in business resilience. By focusing on the vectors that constitute the majority of the ransomware playbook, your company can build a strong, data-backed security posture.

Key Recommendations:

1. Secure Logins: Enforce MFA on all exposed panels and eliminate RDP access from the open internet.
2. Patch Critical Systems: Focus on high-risk, internet-facing perimeter devices.
3. Educate Employees: Implement Security Awareness Training to counter social engineering.
4. Monitor Constantly: Deploy a solution to continuously monitor your attack surface for exposed logins, services, and vulnerabilities.

If you’re ready to stop worrying about IT nightmares and build a proactive security strategy, Interlaced can help.

Ready to secure your startup? Book a meeting with our experts today.Visit Interlaced to learn more about our services.

ource: All statistics and analysis are courtesy of [Coalition’s Cyber Threat Index 2025].