“Cybercriminals are no longer just targeting big corporations—small and medium-sized enterprises (SMEs) are now in the crosshairs.”
With cyber threats evolving rapidly, SMEs are facing a growing wave of attacks that can cripple their operations, steal sensitive data, and drain their finances. Once considered too small to be of interest to hackers, SMEs are now prime targets due to weaker security measures, outdated systems, and limited cybersecurity awareness. Recent data indicates that 50% of small businesses and 70% of medium-sized businesses in the UK experienced some form of cyberattack in the past year. SMEs assume they are too small to be targeted, but cybercriminals see them as easy prey due to limited cybersecurity budgets, outdated security infrastructure, and a lack of in-house expertise. Unlike large corporations with dedicated IT security teams, SMEs often lack the resources to detect and respond to cyber threats effectively.
In this article, we’ll explore why cybercriminals are shifting their focus to SMEs, the threats they face, and the essential steps businesses must take to stay protected.
Why SMEs Are a Prime Target
1. The “Too Small to Target” Myth
A common misconception among SMEs is that cybercriminals only go after large corporations. However, the reality is quite the opposite—smaller businesses are often the preferred targets because they typically lack the advanced cybersecurity defences of larger enterprises.
22% of UK businesses reported experiencing cybercrime in 2024, with small businesses making up 29% of these incidents.
2. Limited Security Budgets
Unlike large organisations that can invest heavily in cybersecurity, many SMEs struggle to allocate resources towards security. This leads to:
🔹 Outdated security infrastructure: Many SMEs lack the resources to invest in the latest security technologies.
🔹 Insufficient employee training: Without regular cybersecurity training, employees may inadvertently become entry points for attacks.
🔹 Absence of dedicated IT personnel: Limited budgets may prevent SMEs from hiring specialized IT staff to manage security.
A 2024 survey revealed that 69% of UK SMEs lack a formal cybersecurity policy, and 43% do not provide cybersecurity training to their employees.
3. Outdated Systems and Lack of Expertise
Many SMEs continue to rely on legacy systems that are no longer supported or updated. Cybercriminals exploit known vulnerabilities in outdated software to gain access to sensitive business data.
Without in-house cybersecurity expertise, SMEs often fail to recognise risks, making them an easy target for attackers.
Common Cyber Threats Facing SMEs
Cybercriminals use a variety of attack methods to exploit small businesses. Here are some of the most common threats:
1. Phishing Attacks
Phishing remains the most common cyber threat against SMEs. Attackers impersonate trusted organisations and send fraudulent emails to trick employees into:
✔ Clicking on malicious links
✔ Entering login credentials on fake websites
✔ Downloading malware onto company devices
🔹 84% of UK businesses that experienced cyber breaches reported phishing attempts in 2024.
2. Ransomware Attacks
Ransomware is a major threat, with UK ransomware incidents increasing by 70% in 2024. Attackers encrypt critical business data and demand payment for decryption, leaving businesses unable to operate.
3. Insider Threats
Insider threats—whether accidental or malicious—pose a significant risk to SMEs. Employees may:
✔ Accidentally expose sensitive data
✔ Fall victim to social engineering scams
✔ Intentionally leak company information for financial gain
4. Supply Chain Attacks
Many SMEs are part of a larger supply chain. Cybercriminals exploit weak security in small businesses to gain access to their larger clients and partners.
The Impact of a Cyberattack on SMEs
A cyberattack can have severe and long-lasting consequences for an SME.
1. Financial Losses
Cyberattacks cost UK businesses an average of £10,830 per incident in 2024. However, the real cost goes beyond immediate damage—it includes:
✔ Regulatory fines for non-compliance with data protection laws.
✔ Lost revenue from business downtime.
✔ Legal fees if customer data is compromised.
For many SMEs, the cost of recovering from an attack can be crippling. Some businesses never recover and are forced to shut down.
2. Reputational Damage
A cyberattack can erode customer trust and damage a business’s reputation.
✔ 60% of consumers say they would stop doing business with a company that suffered a data breach.
✔ Negative publicity can make it difficult to attract new clients.
3. Operational Disruption
Cyberattacks can halt business operations, causing:
✔ Downtime while IT teams recover lost data.
✔ Disruptions to customer service and sales.
✔ Loss of business-critical data.
Without a solid incident response plan, recovering from an attack can take weeks or even months.
4. Legal and Compliance Risks
Failing to safeguard customer data can result in severe penalties. Under GDPR regulations, businesses can face fines of up to £17.5 million or 4% of their global turnover.
How SMEs Can Protect Themselves
Cybersecurity does not have to be complex or expensive. Here’s how SMEs can reduce their risk and protect their business.
1. Develop a Cybersecurity Policy
A clear cybersecurity policy should outline:
✔ How employees handle sensitive data.
✔ Password and authentication requirements.
✔ Steps to take in case of a security breach.
2. Conduct Regular Employee Training
Employees are the first line of defence. Regular training ensures staff can:
✔ Spot phishing scams and fraudulent emails.
✔ Follow best password practices.
✔ Understand the risks of social engineering attacks.
3. Implement Multi-Factor Authentication (MFA)
MFA adds an extra layer of security by requiring users to verify their identity using:
✔ A password plus a one-time code.
✔ A fingerprint or facial recognition.
Even if hackers steal a password, they won’t be able to access accounts without the second verification step.
4. Regularly Update Software and Systems
✔ Apply security patches and updates as soon as they are available.
✔ Replace outdated hardware with secure alternatives.
✔ Ensure all business devices are protected with firewalls and anti-malware software.
5. Perform Regular Data Backups
✔ Schedule automatic backups of all business-critical data.
✔ Store backups in a secure, offsite location to prevent loss during an attack.
✔ Regularly test backups to ensure data can be restored quickly if needed.
6. Engage with Cybersecurity Experts
If your business lacks in-house cybersecurity expertise, consider working with a cybersecurity provider. They can help:
✔ Identify security vulnerabilities.
✔ Provide ongoing security monitoring.
✔ Develop an incident response plan.
The Role of Government and Industry Regulations
The UK government provides support for SMEs to improve their cybersecurity posture:
🔹 Cyber Essentials Certification – A government-backed scheme that helps businesses implement basic cybersecurity measures.
🔹 GDPR Compliance – Ensures businesses protect customer data or face legal consequences.
By following these frameworks, SMEs can enhance security and avoid costly fines.
SMEs can no longer afford to ignore cybersecurity. Cybercriminals actively target small businesses, but by implementing basic security measures, SMEs can greatly reduce their risk of an attack.
📌 Key Takeaways:
✔ Cybercriminals target SMEs due to weak security.
✔ Phishing, ransomware, and insider threats are major risks.
✔ Training employees, enabling MFA, and keeping systems updated can prevent most attacks.
🚀 Now is the time to act! Secure your business today—before it’s too late.
For practical, hands-on cybersecurity training, contact Cyber Rebels to protect your business from cyber threats.
Director Of Training and Development
Andy Longhurst is a cybersecurity trainer, web designer, and co-founder of Cyber Rebels. With over a decade of experience in digital safety, education, and web technology, Andy delivers hands-on cybersecurity workshops for small businesses, startups, and corporate teams. Drawing on his background as a teacher and IT consultant, he helps organisations navigate real-world threats through practical, jargon-free training. Andy’s work empowers people to protect their digital lives with confidence. When not running training sessions or consulting on security strategy, he’s usually studying the latest cyber threats and tactics—or making another cup of tea.
