"To work as intended, most of these devices include embedded sensors making it very easy to track their movements and monitor interactions with them and can be dragged into botnets or hijacked by cyber-attackers," it added.

Quoting telecom equipment maker Ericsson, McAfee -- a wholly owned Intel subsidiary -- said there will be 50 billion IP-connected devices by 2020, up from 1 billion in 2012.

Indian SMBs largely represent knowledge based businesses like chartered accountants, law firms. They are likely to have money moving around through (wire transfers, vendor payments, and customer payments) and their knowledge intensive nature, makes them potentially vulnerable to cyber threats.

Many smaller businesses often lack budget and expertise, and typically have liberal, rarely enforced policies for use of personal devices, in-office Wi-Fi access, installation of unauthorised apps, thereby exposing itself to huge threats.

"Next year, we will see SMBs get more mainstream in their adoption of comprehensive security," McAfee said.

Read more: Mindtree Wins Two Top Awards At SAP TechEd Las Vegas and Indian Tech Firms Have $18 Bn Business Opportunity Using IoT: Cisco