In the world of cybersecurity, perception lags behind reality. Many small and mid-sized defense contractors still believe they fly under the radar. The 2025 Verizon Data Breach Investigations Report (DBIR) puts that myth to rest.

Small businesses are now ground zero in the modern threat landscape. According to this year’s DBIR, a staggering 88% of ransomware-related breaches in small and mid-sized organizations occurred in firms just like ours, agile, specialized, and critical to the national security supply chain. The threat environment has evolved. So must our posture.

The Emerging Threat Reality for GovCon SMBs

Attackers have shifted tactics. They're not just chasing large budgets anymore, they're exploiting what they see as weak links in the DoD's digital armor. The report outlines three urgent findings for small defense contractors:

• Ransomware is relentless. It was present in 44% of all breaches last year. The average ransom paid may be down, but that’s no comfort when operational downtime or exfiltrated CUI is at stake.
• Edge devices are the new frontline. Exploited vulnerabilities jumped 34% year-over-year, with VPNs and internet-exposed infrastructure accounting for 22% of initial access vectors. Zero-day exploits aren't theoretical, they're tactical.
• Credential misuse remains the #1 attack vector, and BYOD policies are fueling it. Infostealer malware found that 46% of corporate credentials were compromised on non-managed personal devices.

What This Means for the Defense Industrial Base

The data is telling us something loud and clear: You’re not too small to matter. You’re just small enough to be vulnerable. In the eyes of a nation-state adversary or a ransomware syndicate, a 100-person defense firm supporting a critical cyber mission is not a soft target, it’s a strategic one.

How Small Contractors Can (and Must) Fight Back

At Adapt Forward, we’ve distilled this year’s DBIR findings into five actionable imperatives:

1. Harden your edge. Patch internet-facing infrastructure with urgency. Assume anything exposed is already being scanned for known exploits.
2. ZeroTrust isn’t a buzzword, it’s a baseline. Segment your networks, reduce lateral movement, and enforce role-based access controls.
3. Modernize MFA. SMS is obsolete. Use phishing-resistant MFA across all privileged access points, especially in hybrid environments.
4. Lock down BYOD. Endpoint control is non-negotiable. If you can’t manage the device, it shouldn’t touch your data.
5. Scrutinize third-party risk. 30% of breaches stemmed from vendor environments. If your supplier doesn’t enforce MFA, their compromise could become your headline.

A Final Word

The 2025 DBIR is more than a report card, it’s a wake-upcall. Small defense contractors are now high-value targets in an increasingly automated and AI-assisted threat landscape. The adversaries are agile. Their tactics are evolving. And so must we.

We at Adapt Forward believe cybersecurity is not just compliance, it’s combat readiness. Let’s treat it that way.