SMBs are increasingly targeted by cybercriminals, with the 2025 Annual Threat Report highlighting a shift in attack vectors. Identity has replaced IP addresses as the main focus of threats. Over the last 18 months, credential abuse has been tied to 90% of confirmed web application breaches. Compromised credentials are the quickest way for hackers to access sensitive data and cloud resources. A staggering 88% of breaches affecting SMBs involve ransomware or data extortion, according to the Verizon 2025 Data Breach Investigations Report. Business email compromise (BEC) is a major threat, with the FBI reporting over 21,000 complaints in 2023, leading to losses exceeding $2.9 billion. This type of fraud is now nearly as prevalent as ransomware for organizations with fewer than 1,000 employees. Ransomware-as-a-Service (RaaS) has made these attacks more accessible, with platforms like LockBit and BlackCat enabling lesser-skilled criminals to deploy sophisticated attacks. Recent advisories from CISA pointed out vulnerabilities in exposed RDP and unpatched VPNs that attackers exploit, particularly in sectors like healthcare. Credential stuffing and MFA fatigue are also significant concerns. As organizations adopt cloud solutions, the reuse of passwords has become a major vulnerability. CISA warns that methods like MFA bombing and SMS interception can effectively bypass weak authentication factors. The Verizon report attributes over 60% of web application breaches to stolen credentials or brute-force attacks, suggesting that investing in passwordless authentication methods, such as FIDO/WebAuthn, is a more effective strategy than exploring post-quantum solutions.