What Microsoft 365 Isn’t Telling Small Businesses
If you’re a small business using Microsoft 365, chances are you feel pretty secure. After all, it’s Microsoft. It’s in the cloud. It’s built for business, right?
Sure. But here’s the thing: just because it’s Microsoft doesn’t mean you’re fully protected. In fact, that false sense of security is exactly what cybercriminals are counting on.
Microsoft 365 offers a powerful suite of business tools from email and Teams to file storage and collaboration. But it’s not bulletproof. In fact, there are critical vulnerabilities in how Microsoft 365 is used (and misused) that leave many small and midsize businesses wide open to attack.
As a security integrator who works closely with clients across Southern California, including Ventura and Santa Barbara counties, we see it all the time. So let’s break down where the real risks lie — and what you can do to protect your business.
The Most Common Microsoft 365 Cybersecurity Risks
1. Phishing Attacks
Microsoft 365 is a magnet for phishing emails. Why? Because hackers know most users log in through Outlook every day. And they’re getting better… spoofed logos, lookalike domains and urgent “click here” messages are designed to trip you up.
One click. That’s all it takes.
2. Malware via Email, OneDrive, or Teams
The beauty of Microsoft 365 is how easily it integrates everything. The problem? That same convenience can be used to spread malicious files across your entire network. A bad link in Teams or a shared file in OneDrive can launch a full-blown malware infection.
3. Data Breaches from Over-Sharing
Have you ever accidentally shared a sensitive file with the wrong person? Or worse, set a folder to “public” without realizing it? Microsoft 365 makes it easy to collaborate, but if access isn’t locked down, private data can leak fast.
4. Account Takeovers
If a cybercriminal gets access to one user’s account, they can send internal phishing messages, view sensitive files and move laterally through your business. This isn’t theory — it happens every day.
5. Overpermissioning & Copilot Risks
One growing concern: users have too much access. With new AI tools like Microsoft Copilot entering the mix, there’s real concern that AI-generated content might accidentally reveal confidential data, especially if permissions aren’t strictly managed.
6. Weak Passwords & MFA Gaps
If you’re not enforcing strong passwords and multi-factor authentication (MFA) for every user, you’re rolling the dice. It’s the #1 way accounts get compromised — and it’s often overlooked.
7. Data Loss Prevention (DLP) Gaps
Most small businesses don’t realize that DLP isn’t set up by default. If you’re not actively configuring policies to prevent sensitive info from being emailed, uploaded, or shared, you’re at serious risk of data exposure.
8. Lack of Monitoring and Audit Trails
If no one is watching the logs, who’s going to know when something goes wrong? Microsoft 365 provides robust activity logs, but they’re only helpful if someone’s reviewing them.
What You Can Do About It
Here’s the good news: Microsoft gives you the tools you just have to use them. Here’s how to strengthen your M365 environment without needing a huge IT team:
✅ Hire PSLA to Help Your Team Tackle These Basic Requirements & More
Not only can PSLA help you cover the fundamentals but we also automate your cyber security necessities, so you don’t have to spend hours on monitoring logs and updating policies.
OR take the DIY route if you have the time, bandwidth and staffing for it:
✅ Train Your People
Phishing and social engineering are the top attack methods. Regular, easy-to-understand cybersecurity awareness training can reduce click rates and build a culture of caution.
✅ Enforce Strong Passwords + MFA
Use unique passwords and turn on MFA for everyone. Not some people everyone.
✅ Turn On DLP (Data Loss Prevention)
DLP policies help prevent employees from sending sensitive data outside your organization. Set them up for documents, emails and chat.
✅ Use Advanced Threat Protection
Safe Links. Safe Attachments. ATP is your frontline defense against known threats and weaponized files. Make sure it’s turned on and configured correctly.
✅ Monitor All Communication Channels
Email isn’t the only risk! Keep an eye on Teams, SharePoint and OneDrive activity. A compromised internal message can spread fast.
✅ Review User Permissions Often
Limit access to what people actually need. Admin accounts should be tightly controlled and AI tools like Copilot need guardrails.
✅ Stay Updated
Microsoft issues patches regularly. Don’t wait! Apply updates and security fixes as soon as possible.
✅ Audit Logs Regularly
Even if you don’t have a full-time IT team, review your activity logs daily or use a managed security provider like PSLA to help spot anomalies.
Does That List Look a Little Overwhelming and You Need Some Help? That’s What We’re Here For
Most small businesses don’t have the resources to hire full-time cybersecurity experts, the time to tackle lists like the one above or maybe you are just looking for some supplemental help to go beyond what Microsoft can offer.
That’s why we built Cyber Covenant! It is an affordable, all-in-one cybersecurity program tailored for real-world businesses. We help you manage Microsoft 365 security, implement monitoring tools, train your team and stay compliant without the overwhelm.
We’re not just watching dashboards — we’re watching your back.
