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<\/figure>\n<\/div>\n\n\nCybercrime is no longer something that only keeps big businesses up at night. In 2025, over 40% of businesses in the UK experienced a cybersecurity breach or attack<\/a>. <\/p>\n\n\n\n When large (250+ employees) and medium-sized businesses (50 to 249 employees) only make up\u00a0around 46,000 of our\u00a05.7 million\u00a0<\/strong>businesses in this country<\/a>,\u00a0it\u2019s\u00a0clear\u00a0that smaller outfits are shouldering more than their fair share of cybercrime\u2019s impact.\u00a0<\/p>\n\n\n\n But why are small businesses being targeted at all? Surely cybercriminals would focus on bigger companies? <\/p>\n\n\n\n They do. In their droves. 74% of large businesses reported being hit by a cyber-attack in 2025. That\u2019s a lot more than the average of 40% we cited above. <\/p>\n\n\n\n But, there are only around 8,000 large businesses in the UK. And they have stronger cybersecurity, more expertise, and the money needed to properly defend themselves against cybercriminals. <\/p>\n\n\n\n So, why go after small businesses? Simple.\u00a0It\u2019s\u00a0easy. The rewards are a drop in the ocean compared to larger businesses, but attacks can often be carried out\u00a0en\u00a0masse and quickly,\u00a0using\u00a0techniques like\u00a0phishing\u00a0and\u00a0social engineering.\u00a0<\/p>\n\n\n\n The rise of AI-assisted hacking is only going to\u00a0put\u00a0more\u00a0pressure on smaller businesses. The\u00a0National\u00a0Cybersecurity\u00a0Centre (NCSC) have already warned that by 2027<\/a>, AI will \u201calmost certainly continue to make elements of cyber intrusion operations more effective and efficient.\u201d\u00a0<\/p>\n\n\n\n Makes for grim reading, right? That\u2019s why it pays to be prepared. In this article, we\u2019re not going to sugarcoat anything. We\u2019re going to lay out the cybersecurity risks small businesses face<\/a> in plain English. <\/p>\n\n\n\n After that, we\u2019ll cover what you can do to limit them. As well as how insurance can play a big part in protecting the long-term success of your business.<\/p>\n\n\n\n <\/p>\n\n\n\n There\u2019s a Hollywood perception of hacking \u2013 you know the one. A person in a hoody, their face shrouded in darkness, glaring at an enormous monitor, green text cascading down the screen as their fingers frantically dance across the keyboard. <\/p>\n\n\n\n Yeah\u2026 it\u2019s not really like that. Nowadays, \u2018hacking\u2019 is more focused on everyday tasks we all do. Checking and replying to emails and texts, sending and receiving packages, paying for stuff online, commuting, etc. <\/p>\n\n\n\n Hackers aren\u2019t getting access to small business\u2019 systems by \u2018hacking the mainframe\u2019 or \u2018brute forcing the firewall\u2019. <\/p>\n\n\n\n They\u2019re doing it by using something called social engineering<\/a>. They\u2019re techniques designed to psychologically manipulate you into doing something for them. <\/p>\n\n\n\n Normally, this takes the form of a fake email, text, phone call, or social media message. With the end goal of inadvertently sending them money, handing over client data, giving them access to your systems, or otherwise compromising your security. <\/p>\n\n\n\n Let\u2019s dive deeper into their techniques, so you know more about the risks you face.<\/p>\n\n\n\n <\/p>\n\n\n\n Phishing<\/a> is the most\u00a0common form\u00a0of cyber-attack and one of the biggest cybersecurity risks for small businesses. Of the businesses that experienced an attack in 2025,\u00a085% were instances of phishing<\/a>.\u00a0<\/p>\n\n\n\n In its simplest form, phishing is when a cybercriminal sends you a deceptive email, text, or social media message designed to make you click a link, open an attachment, provide log in details, or approve a payment. <\/p>\n\n\n\n For example, let\u2019s say you use Microsoft 365. One day, you get an email from \u2018Microsoft\u2019 saying your account is about to be suspended because of a failed payment. The email looks authentic on the surface and includes a link to log in to your account. <\/p>\n\n\n\n You click the link and enter your log in details into what looks like the Microsoft 365 homepage. Bam, the phishing email has worked. <\/p>\n\n\n\n The cybercriminal has carefully crafted an email to look exactly like those you would receive from Microsoft. They\u2019ve then done the same with the website. If you\u2019re not paying careful attention, it\u2019s easy to miss the signs: <\/p>\n\n\n\n This example could take the form of an email from HMRC, a text from a supplier, or a social media message from a friend. <\/p>\n\n\n\n They all have the same goal in mind: to get something from you. <\/p>\n\n\n\n It pays to be aware of the tactics used in phishing, so you can avoid falling victim to it. The NCSC have put together a great phishing guide for businesses<\/a> which goes into detail on what you can do to both prevent an attack and protect your systems.<\/p>\n\n\n\n <\/p>\n\n\n\n BEC is a type of fraud designed to impersonate someone you trust. Cybercriminals will either use an email address that\u2019s very similar to the trusted person (eg joe.bloggs@company.com instead of joebloggs@company.com) or hack into that person\u2019s email directly and send fake emails. <\/p>\n\n\n\n Often, they\u2019re trying to trick you into sending money or sharing sensitive information about your business. <\/p>\n\n\n\n For example, you might have a trusted supplier you\u2019ve worked with for many years. One day, you get an email from them asking for any future invoices to be paid to a new bank account. Seems like a reasonable request, right? <\/p>\n\n\n\n If you don\u2019t double check before making the change, you could inadvertently send money to the cybercriminal instead of your supplier. Even worse, your supplier still needs paying so it\u2019s a double whammy. <\/p>\n\n\n\n Double-checking the sender\u2019s email address, carefully considering the language used, or making a phone call to the person before doing what they ask are all potential ways of avoiding the scam. <\/p>\n\n\n\n Northern Ireland’s cyber security centre<\/a> has more information that\u2019s well worth a read.<\/p>\n\n\n\n <\/p>\n\n\n\n Ransomware is a more specialised form of cybercrime, but it still affects well over 10,000 businesses a year in the UK<\/a>. <\/p>\n\n\n\n It\u2019s a type of malware that blocks access to your computer or data, usually by encrypting your files and demanding a ransom payment to decrypt them. <\/p>\n\n\n\n Malware is a wider term that encompasses all kinds of malicious software. As well as ransomware, there are types of malware that can take control of devices, steal log in credentials, and much more. <\/p>\n\n\n\n A common way of falling victim to ransomware is through phishing emails, often in the form of an infected attachment. Once you open it, it gets to work on your computer and encrypts your data, preventing you from accessing it until you pay a ransom, restore your data from a backup, or wipe any infected devices and start over. <\/p>\n\n\n\n Unfortunately, the only way to deal with ransomware is to not fall victim to it in the first place. <\/p>\n\n\n\n We keep mentioning them, but the NCSC have put together a huge variety of resources on ransomware<\/a>. From how to detect it to how to deal with it if you do find yourself with an infected system. You can also have a read of our ransomware insurance guide<\/a> for more info on protecting yourself.<\/p>\n\n\n\n <\/p>\n\n\n\n Do you use the same password for all your accounts? If so, you\u2019re a dream come true for a cybercriminal. <\/p>\n\n\n\n All they need to do is breach one of your accounts and they\u2019ve got themselves access to every account that shares a password with it. <\/p>\n\n\n\n Having strong, unique passwords for every different account is one of the easiest ways to stop a breach becoming more serious. It\u2019s a lot easier to recover access to one account without having to worry about what could be happening across the rest. <\/p>\n\n\n\n Worried about remembering and managing all those unique passwords? You need a password manager, like 1Password<\/a>, Bitwarden<\/a>, Dashlane<\/a>, etc. <\/p>\n\n\n\n Password managers do several things: <\/p>\n\n\n\n <\/p>\n\n\n\n MFA is a sign-in method for your online accounts which requires two separate proofs of identity before you can log in, not just a password. <\/p>\n\n\n\n So, you\u2019ll enter your password correctly and, before you\u2019re logged in, you\u2019ll also have to provide something else. This could be: <\/p>\n\n\n\n MFA is good for account security because even if your password is stolen, a cybercriminal still can\u2019t access your account because there\u2019s another layer of security. <\/p>\n\n\n\n It\u2019s a no-brainer when it comes to cybersecurity and you should have it active across any accounts that allow it. <\/p>\n\n\n\n Check out the NCSC\u2019s guide on MFA<\/a> for more info. It includes the best kinds of authentication to use as well as guidance on how and when to use it.<\/p>\n\n\n\n <\/p>\n\n\n\n We\u2019ve talked about a lot of digital problems, so let\u2019s cover more of an analog one. <\/p>\n\n\n\n Cybercriminals thrive on locating lost devices, especially corporate devices that hold a wealth of useful data. They might purchase these illicitly or steal them, before extracting the data and either selling it, ransoming it, or using it to access a business\u2019 systems. <\/p>\n\n\n\n We\u2019re all human. One of your team members is bound to accidentally lose one of their work devices at some point. <\/p>\n\n\n\n There are ways you can lock down devices to make them tougher to access, though. <\/p>\n\n\n\n Here are a few tips: <\/p>\n\n\n\n These are some good starting points for making sure your business\u2019 data is safe if any devices go missing. <\/p>\n\n\n\n The NCSC\u2019s \u2018cybersecurity for small businesses\u2019 guide<\/a> has more info on how to protect your devices.<\/p>\n\n\n\n <\/p>\n\n\n\n We\u2019ve talked about the kinds of cybersecurity risks a small business could face, but how might they impact you in real terms? <\/p>\n\n\n\n The first, and most apparent, is operational disruption. After a cyber-attack, you may not have access to your systems. This means you might not be able to access your files, emails, and tools. <\/p>\n\n\n\n Your website might be down too. If you rely on it for sales, you could see a big hit to your bottom line in the short term. <\/p>\n\n\n\n In 2025, the UK government estimated the average cost of a breach was around \u00a31,600<\/a>. That includes micro-businesses and sole traders, though. The more reliant you are on your systems and the internet, and the less prepared you are, the more serious and costly a breach can be. <\/p>\n\n\n\n Outside of operational disruption, you have the clean-up costs of a cyber-attack. Restoring systems, replacing hardware, improving your security so it doesn\u2019t happen again. All these things come at a cost, and they\u2019re mandatory if you want to get back up and running. <\/p>\n\n\n\n You also have the \u2018softer\u2019 outcomes of a cyber-attack. Reputational damage, loss of customers, bad publicity. Depending on the severity of the attack, this damage alone could set you back considerably. <\/p>\n\n\n\n You\u2019ll also need to notify the Information Commissioner\u2019s Office (ICO)<\/a> when you\u2019re breached, if personal data is involved. You have to inform the ICO within 72 hours of such a breach and you may need to inform everyone affected. That\u2019s more time and money spent on recovering. <\/p>\n\n\n\n There are more costs involved if you\u2019re a smaller outfit too. Paying for emergency IT support is costly, but often necessary, and any disruption in cashflow can be a problem if your margins are tighter. <\/p>\n\n\n\n <\/p>\n\n\n\n Even with all the tips we\u2019ve shared, and following the NCSC\u2019s advice to the letter, you can still be on the receiving end of a cyber-attack. And fail to contain it. <\/p>\n\n\n\n Cybercriminals are evolving all the time. The techniques and technology they use are evolving along with them, allowing them to find ways past even the tightest cybersecurity measures. <\/p>\n\n\n\n When you\u2019re breached, having cyber insurance<\/a> can take a lot of stress out of the situation. It provides you with access to IT experts who will work to stop the attack and restore your systems. It also sends in legal experts to advise you on your next steps, including ICO notification. <\/p>\n\n\n\n Cyber insurance will even pay for PR experts to help you communicate with your customers and defend your reputation. <\/p>\n\n\n\n You can even add on cover that\u2019ll pay for any lost income you\u2019ve experienced while you\u2019ve been getting back on your feet. As well as protection for financial cybercrime \u2013 the most common type of cybercrime. <\/p>\n\n\n\n Taking positive action and implementing some of the advice we\u2019ve spoken about in this article, alongside the NCSC\u2019s guidance, will put you on the right path. Couple that with cyber insurance and you\u2019re in the best place to avoid the growing risk of cybercrime. <\/p>\n\n\n\n Have\u00a0any more questions about cyber insurance? Or are you ready to speak to an insurance broker? Give us a call on 0345 222 5391<\/strong> to speak to one of our knowledgeable insurance advisers.<\/p>\n\n\n\n <\/p>\n\n\n\n Image used under license from iStock.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Cybercrime is no longer something that only keeps big businesses up at night. In 2025, over 40% of businesses in the UK experienced a cybersecurity breach or attack. When large (250+ employees) and medium-sized businesses (50 to 249 employees) only make … Continue reading What cybersecurity risks small businesses actually face<\/strong><\/h2>\n\n\n\n
Phishing<\/strong><\/h3>\n\n\n\n
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Business email compromise (BEC)<\/strong><\/h3>\n\n\n\n
Ransomware or malware<\/strong><\/h3>\n\n\n\n
Weak passwords<\/strong><\/h3>\n\n\n\n
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No multi-factor authentication (MFA)<\/strong><\/h3>\n\n\n\n
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Lost or stolen devices<\/strong><\/h3>\n\n\n\n
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The impact of a cyber-attack on a small business<\/strong><\/h2>\n\n\n\n
How cyber insurance helps<\/strong><\/h2>\n\n\n\n
Cybersecurity checklist for small businesses<\/strong><\/h2>\n\n\n
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