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Many small businesses have been hit with viruses affecting their money and dealing with big lawsuits. Many firms have been breached so far, being sued over the information that was leaked out.

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New mutating viruses, like Locky and CryptoLocker, are quickly popping up. And many are infecting small businesses, which are now big targets for hackers.

Undercapitalized and outgunned small businesses are still the weak links in cybersecurity, even though they may have valuable data. Their percentage of IT budget directed to security has been increasing from 4.9 percent in 2010 to 7.9 percent last year, according to Ponemon Institute's annual IT security Tracking study. But spending still lags behind big companies.

Meanwhile, hackers are inventing increasingly sophisticated malware.

Fred Tanneau | AFP | Getty Images

"Small businesses don't believe they're targeted by bad guys," said Larry Ponemon, chairman of the research think tank. "But small businesses are now targets, since big companies have the resources for security."

Small businesses can also offer entry to bigger ones, where there's lots of data to steal. In 2013, Target's data was famously breached. But few people know that the company's vast database was actually hacked through its HVAC vendor. That attack ended up costing Target $39 million in settlements and affecting 40 million customers.

These days, malicious programs are spreading even faster than before. The FBI warns that malware attacks are on the rise. And there are now many mutations of these destructive ransomware viruses, which can infiltrate computers.

Ransomware attacks computer systems through malicious links or websites and then encrypts their files. Pop-up messages appear asking the business to pay a ransom in hundreds or thousands of dollars for systems to be restored. Lately, ransom is asked to be paid in bitcoin, which can't be tracked, adds an FBI advisory.

One ransomware variety, called CryptoLocker, spreads a virus when a malicious email attachment is clicked. Banking data is then stolen and files encrypted so they can't be used.

"Ransomware is brutally malicious and bad for small businesses," said Michael Kaiser, executive director of the National Cyber Security Alliance. "It's also quite effective, since they have data, too, and can be used as stepping stones to bigger businesses."

The upshot is that more big companies are holding small vendors accountable for data breaches, said Ponemon.

These breaches can be devastating, he added. Small business may have access to huge amounts of data, such as email marketing services. So after a breach, small business can find themselves out of business and dealing with big law suits, Ponemon said.

The upshot is that small businesses need tight cybersecurity to protect their lifeblood.

"Small businesses are now targets, since big companies have the resources for security." -Larry Ponemon, Chairman, Ponemon Institute

And they shouldn't count on law enforcement to help, said Kaiser. The crimes occur remotely and don't have fingerprints, he noted. So it's hard to track down the bad guys. "So focus on what you can control," he said, "and how you would respond and recover."

The best defense starts with a basic security audit of key assets. Take a step back, Kaiser advised, and know what you need to protect. "Small businesses get overwhelmed by risk," he said. "But what are they at risk for?"

The objective is coming up with a risk-management approach to protect data, he said. That may mean targeting new disruptive technologies like the Internet of Things, such as a video camera that's web connected, which can be a weak link. Or protecting smartphones used for business, which are also targets for a malware that locks them down and then demands ransom, said the FBI.

"The Internet of Things is happening so quickly," said Ponemon. "If you don't control access to one part, you can corrupt the whole chain." Wi-fi networks also need to be secure.

Do a risk audit

Regularly backing up data and storing it in a secure cloud is another good defense. "It can mitigate the attack," said David Burg, PricewaterhouseCoopers cybersecurity leader. "In a highly connected world, it's especially important." If the system is infected, it can be restored.

Kaiser advised using multifactor authentication, since it's stronger than just passwords. Devices can also be encrypted for extra protection.

Security leaks are most apt to happen in the cloud, added Ponemon. So experts advise finding a reputable cloud service that's secure and can hold system information.

"Read the reviews," said Kaiser. "And do your homework, such as finding out how the cloud services are maintained. Outsourcing can save money over time."

Ultimately, malware attacks may begin with simple employee error, such as clicking on a malicious link. So Ponemon suggests that small businesses create a culture of security. That means training employees on how not to share passwords or open suspicious emails.

"Good protection starts at the computer," he said.

- By Constance Gustke, special to CNBC.com

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Warning: These cyberattacks could put you out of business

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New mutating viruses, like Locky and CryptoLocker, are quickly popping up. And many are infecting small businesses, which are now big targets for hackers. Undercapitalized and outgunned small businesses are still the weak links in cybersecurity, even though they may have valuable data.

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One hacking of Ashley Madison website, which is a dating website for married people, revealed member's personal information and posted it on another website for anyone else to view.

An employee from Sony was fired as a result of a computer hacking which led to many employees' emails and other personal information being leaked.

Target had a hacking incident which exposed many customers emails and other personal information for public view.

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These Were The Biggest Victims of Recent Hacks

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These are the biggest data breaches that have occurred just in the last 2 years.

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Just as the video we watched in class, someone could easily just lose their wallet on the bus and someone else could steal their credit card and instantly start making purchases on the victim's account.

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How to protect youself from identity theft

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How to protect youself from identity theft

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1. Protect your computer and smartphone with strong, up-to-date security software.
2. Learn to spot spam and scams.
3. Use strong passwords.
4. Freeze your credit.
5. Only use reputable websites when making purchases.

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A couple of businesses in the UK has been hit with a mysterious Peter Pan virus. The virus exposed many of the employees' emails to the public view.

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Networks of universities in former Iron Curtain countries are frequently used to spread viruses and malicious spam.

The message tricks unsuspecting users into downloading a clutch of sophisticated viruses that capture highly sensitive personal and commercial information.

Victims of the attack have noted the authentic feel of the email and in some cases have claimed that last four digits of a credit card quoted in the fraudulent messages match their own.

It is further enhanced as the email is based on a real event - the Bournemouth Pavilion Theatre is holding its Peter Pan pantomime from 6 December to 4 January.

Experts warned, however, that the email appears to be a sophisticated phishing attack aimed at getting recipients to click on the attachment as they attempt to investigate tickets they have not purchased.

Small and medium-sized businesses seem to be the primary targets of the email.

The hackers appear to have sought to mimic communications about office Christmas celebrations and school outing which are typically planned some months in advance.

The email contains an attachment which appears to be printable tickets for three adults and six children but is in fact malicious software.

A screenshot of the spam email sent to hundreds of unsuspecting users TELEGRAPH

If downloaded the virus is programmed to steal Facebook passwords, hijack the user's email accounts and spread itself to other machines using the victim's internet connection.

Worryingly for affected users, customers whose internet connections are taken over in this way risk being disconnected by their internet providers.

Online virus experts Comodosay that the detection rate for this latest forgery is just 3/55 meaning that even users with the latest anti-virus filters could be at risk.

Meanwhile experts have warned of a perfect storm of viruses emanating from the former Soviet Union.

"You see a lot of attacks coming out of Russia and the old Soviet Republics, out of Eastern Europe, partly because they have a great educational system, turning out a lot of smart people who know all about computers, but not that many employment opportunities for them," said Andrew Conway, systems analyst at Cloudmark internet security.

"They don't have the high-tech sector. A lot of these people are turning to computer crime because that's just a way to use their expertise."

Mr Conway warned that the battle to defeat hackers will be a long one.

"The internet needs to be rebuilt from the ground-up with security in mind," he said.

"The internet was built on a basis of trust and that paradigm has long since broken down. It's the dirty secret of the computer security business that the attackers are winning.

"If someone is sufficiently determined to break into your system, if you're a sufficiently high value target, then they will be able to get in."

BH Live, the Bournemouth entertainment company in whose name the spam messages were sent, has come under fire for failing to help worried recipients.

"It was worrying for us as we are local to the area so lots of our staff will have used BHLive," said one affected business.

"I tried to phone and e-mail BH Live to confirm only to find their 'phone queue' is full, and the e-mail address on their actual website came back as 'undeliverable'," said another.

A statement issued on the website of the Bournemouth Pavilion said: "Emails have been sent to a number of recipients purporting to be from BH Live."

Bournemouth Pavilion's warning to customers after the attacks in its name TELEGRAPH

"Initial investigations suggest that emails did not originate from BH Live's systems or network. Please do not open any attachment or click any links.

"We will post updates via our website and social media. We apologise for any inconvenience."

Tickets are still available for December performances of Peter Pan.

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'Undetectable' Peter Pan computer virus threatens UK businesses

# data[].attributes.attachment_link.description
Networks of universities in former Iron Curtain countries are frequently used to spread viruses and malicious spam. The message tricks unsuspecting users into downloading a clutch of sophisticated viruses that capture highly sensitive personal and commercial information.