Common Cybersecurity Challenges for Startups (And How to Fix Them)

Startups don’t ignore security on purpose—it just doesn’t scream urgent when there are customers to win, products to ship, and investors to impress. So, passwords get shared over Slack, ex-employees still have access to company files, and everyone assumes “we’re too small for hackers to care.”

Then reality hits. A single phishing email drains the bank account. A stolen laptop leaks customer data. A compliance audit turns into a disaster. That’s how 60% of startups end up shutting down after a cyberattack—not because they didn’t try hard enough, but because they didn’t lock things down before it was too late.

Let’s try and look for the good news here. Fixing these security gaps doesn’t have to be complicated or expensive. With the right tools and a few smart policies, you can keep your startup safe without slowing things down. We’re breaking down five major security risks and how to get ahead of them—starting with centralized access control. Let’s get into it.

Challenge #1: Lack of Centralized Access Control

Let’s paint you a picture. You hire a freelancer, give them admin access, they finish the project, and… six months later, they still have access to your company’s Slack, email, and customer database. Oops. Now multiply that by every contractor, former employee, and “temporary” account you’ve ever created. That’s a ticking time bomb.

Why It’s a Problem

• No one’s keeping track—Logins get handed out like free samples at Costco, but nobody remembers to revoke them.
• Passwords get recycled—Your team’s using the same weak password for everything. If one account gets hacked, the whole system’s up for grabs.
• IT team? What IT team?—The closest thing you have to an IT department is that one developer who also fixes the office Wi-Fi.

How to Fix It

No need for a 100-page security manual—just put some guardrails in place:

• SSO (single sign-on)—One login for everything, so nobody’s juggling 12 different passwords.
• MFA (multi-factor authentication)—Even if someone’s password leaks, they still need a second verification step to get in.
• RBAC (role-based access control)—Lock down access based on job roles, so your intern isn’t snooping through payroll data.
• A cloud directory that does the heavy lifting—JumpCloud lets you manage users, devices, and permissions from one place, without the usual IT headaches.

Tighten up access now, and you won’t wake up one day wondering why a former intern still has admin rights to your company’s database.

Challenge #2: Shadow IT & Unsecured Personal Devices

Ever see a team member hop on a Zoom call from a coffee shop, logging in from a personal laptop that’s one spilled latte away from disaster? Or worse—someone saving customer data to their personal Google Drive because “it’s easier”? Yeah, that’s shadow IT, and it’s a hacker’s playground.

Why It’s a Problem

• BYOD (bring your own disaster device)—Employees work from whatever device they want, with zero security controls.
• Ghost apps everywhere—Your team’s signing up for SaaS tools without telling IT. Sensitive data is floating around in random accounts with no oversight.
• Lost or stolen devices—A laptop left in an Uber shouldn’t mean company secrets are now up for grabs.

How to Fix It

This isn’t a lecture on locking everything down like Fort Knox—it’s about smart security:

• Enforce a BYOD policy—If employees use personal devices, they need encryption, automatic updates, and remote wipe capabilities.
• Device trust policies—Only let secure, IT-approved devices access your business apps. No exceptions.
• Device management that works remotely—JumpCloud lets you secure Windows, macOS, and Linux devices, no matter where employees work.

Because “I lost my laptop” shouldn’t turn into “we lost everything.”

Challenge #3: No Backup or Disaster Recovery Plan

Most startups don’t think about backups until they’re frantically Googling “how to recover deleted data” at 2 a.m. If you’re not backing up everything, ransomware, accidental deletions, or just a bad server day can wipe out years of work.

Why It’s a Problem

• One attack = game over—Ransomware locks you out of your own data and demands a payout. If you don’t have backups, you’re toast.
• Compliance nightmares—Regulations like GDPR and HIPAA require secure backups. Startups skipping this step could face big fines.
• Accidents happen—A simple “Oops, I deleted the wrong file” shouldn’t be a death sentence for your company.

How to Fix It

No complicated backup strategies. Just set it and forget it:

• Automated, encrypted backups—Everything should back up regularly, without manual effort.
• Immutable backups—Lock backups so ransomware can’t delete or change them.
• Disaster recovery drills—Test restoring your data before an actual emergency hits.

Don’t falsely believe the notion that backups are just about saving files. Why? Because they’re more about saving your business.

Challenge #4: Unprotected Cloud & SaaS Applications

Startups run on SaaS. Slack, Notion, Google Drive, GitHub—you name it, someone on your team probably signed up for it. The problem is that no one’s keeping track of who has access, where sensitive data lives, or whether any of these accounts are secured.

Why It’s a Problem

• Ex-employees still have access—If you don’t have a strict offboarding process, ex-team members might still have access to critical company data.
• Misconfigurations are everywhere—Cloud security isn’t “set it and forget it.” If you’re not checking settings, you’re leaving the door wide open.
• Weak passwords are a hacker’s dream—Without SSO or MFA, stolen credentials can give attackers a VIP pass into your systems.

How to Fix It

Lock it down before something bad happens:

• SSO stops password chaos—A single, secure login for every tool means fewer passwords floating around.
• Audit user access regularly—Cut off former employees and limit who gets admin privileges.
• Use cloud security posture management (CSPM)—Automated tools check your AWS, Google Cloud, and Azure settings for security gaps.

Because a “Who still has access to our billing system?” moment should never be how you discover a security risk.

Challenge #5: Weak Security Awareness Among Employees

You can have the best security tools in the world, but if your employees click on phishing emails like they’re scratch-off lottery tickets, you’re still in trouble. Attackers don’t need to hack your systems if they can just trick someone into handing over access.

Why It’s a Problem

• Hackers target people, not just systems—Most breaches start with phishing emails, not technical exploits.
• No security training = big risks—If your team can’t spot scams, they will fall for them.
• One mistake can open the floodgates—A single click can lead to stolen data, malware, or total account takeovers.

How to Fix It

Security should be second nature—not an afterthought:

• Train employees to recognize scams—If an email seems fishy, it probably is.
• Make password managers a requirement—No more weak passwords or writing them down in Notion.
• Test your team with phishing simulations—A little practice now saves a lot of headaches later.

Security is everyone’s problem. And the better your team is at spotting threats, the less likely you are to end up in the headlines for the wrong reasons.

How JumpCloud Helps Startups Stay Secure

Startups move fast and their security should keep up without slowing anyone down. That’s where JumpCloud comes in. Instead of juggling a dozen different security tools (and hoping nothing slips through the cracks), startups get an all-in-one solution for identity, access, and device security.

With SSO, MFA, and device management baked in, your team can lock down access, enforce security policies, and protect every user, app, and device—without hiring a full IT team. No more guessing who has access to what. No more leaving security on the back burner.

The best part? You can try it for free. Get 30 days of JumpCloud and see how easy securing your startup can be. Start your free trial today.