Closing the cyber security gap for SMEs

Barely a week passes without reports of another major cyber attack.

However, smaller firms are increasingly finding themselves in the firing line. In the last year, 42 per cent of small businesses reported suffering a cyber attack or data breach, rising to 67 per cent among medium-sized businesses[1].

Unlike larger corporations, many SMEs are unprepared for the possibility of an attack. Smaller budgets can mean cyber security can often slip down the to-do list, yet the impact can be extremely disruptive, from catastrophic operational issues and tarnished reputations to threatened survival.

A false sense of security

Despite the rising threat, many small and medium-sized enterprises still believe they aren’t at risk from being targeted by cyber criminals. However, this is far from the truth.

Many SMEs remain highly exposed to cyber threats, some lacking even the most basic defences such as multi-factor authentication (MFA) or teaching employees how to spot spam and phishing emails.

In fact, research has revealed that around two million SMEs in the UK (39 per cent of the total number) have not provided any cyber security training to their staff[2].

The financial impact can be significant. Government figures show that the average cost for micro and small businesses to recover from a serious cyber breach now stands at almost £8,000 – and that’s before taking into account the reputational damage and possible loss of customers.

How SMEs are targeted

Businesses are often caught out through simple human error and overlooked weaknesses rather than sophisticated hacking techniques. In fact, insurers report anecdotally that the majority of cyber claims they receive stem from human error.

Phishing remains the most common cyber attack, with 85 per cent of UK businesses targeted by email scams[3].

Fraudsters will send emails that appear to come from trusted sources, tricking employees into sharing information or making payments.

In other cases, a single click on a malicious link or attachment can download malware or ransomware, giving criminals access to sensitive data or locking systems until a ransom is paid.

Criminals send convincing emails that appear to come from trusted sources, tricking employees into sharing credentials or making unauthorised payments.

Business emails being compromised is another growing threat. Attackers gain access to genuine business accounts and use them to send fraudulent invoices or redirect supplier payments. Because these messages originate from legitimate email addresses, they are difficult to spot until the financial damage is done.

Supply chain vulnerabilities are also on the rise. Even if a business maintains a reasonable cyber posture, it can still be compromised through a third-party supplier, IT provider or contractor with weaker defences. Cyber criminals increasingly exploit these indirect routes, using one compromised company as a gateway to others within the same network.

However, with the right measures in place, smaller businesses can close the gap between vulnerability and resilience.

Defend against cyber attacks

Even the best technology is only as effective as the people behind it. Regular training helps employees recognise suspicious activity and know how to respond if something goes wrong.

Awareness alone, however, isn’t enough and technical and procedural safeguards are essential to prevent attacks from succeeding.

Keeping software and operating systems up to date, applying security patches promptly and using reputable antivirus tools all help close off common entry points.

Firewalls and data encryption strengthen protection further, while multi-factor authentication remains one of the simplest and most effective ways to keep systems secure.

Access control is equally important. Businesses should limit administrator rights and ensure employees only have access to the data and systems they need. Meanwhile, regular data backups ensures that critical information can be recovered quickly if systems are breached.

Every business should also have an incident response plan in place. Knowing how to isolate affected systems, who to contact and what steps should be taken can help contain damage and speed up recovery. Additionally, keeping a printed copy of the plan can prove invaluable if digital systems are compromised or unavailable.

The insurance safety net

Cyber insurance is becoming a vital safety net for smaller businesses, helping them recover quickly when an attack strikes. Most policies provide instant access to experts who can offer support throughout.

Working with a specialist broker can provide valuable insight into what cover is right for your business, with cyber security premiums more affordable than you may expect.

Protect your business

Cyber security is now a core part of running a responsible business, as any company that stores or processes personal data must comply with UK data protection law.

Just one single lapse in cyber security can have serious consequences, exposing sensitive information and attracting regulatory attention.

Keeping software up to date, using secure passwords and having clear procedures in place all help ensure compliance and show that a business takes its responsibilities seriously, demonstrating data resilience.

Cyber risk management is an essential part of business continuity planning.

By combining awareness with sound systems and appropriate insurance, firms can stay operational and keep the trust of their customers. Acting early is always less costly than picking up the pieces after an attack.

[1] https://securitybrief.co.uk/story/uk-smes-face-rise-in-cyber-attacks-with-average-cost-gbp-7-960

[2] https://securitybrief.co.uk/story/uk-smes-face-rise-in-cyber-attacks-with-average-cost-gbp-7-960

[3] https://securitybrief.co.uk/story/uk-smes-face-rise-in-cyber-attacks-with-average-cost-gbp-7-960