Cyber threats for small business are increasing at an exponential rate with almost 43% of all the cyberattacks are now targeting SMEs. May business owner thinks that “security through obscurity” means that their team is small and less valuable for the cyber criminals. However, that is not the case, with the help of Generative AI and new Malware models, attacking hundreds of small businesses is not a big deal, they can do it in one go. Today we are going to discuss top 6 Cyber Security Threats in 2026 that can harm your business and how you can protect your business from them.
The World Economic Forum estimates that cybercrime could cost organizations up to £27 billion annually by 2026, underscoring the growing financial pressure on companies of all sizes.
Most of the time small businesses does not have a proper cyber security team or enterprise grade defense that makes them vulnerable to insider threats in cyber security. Following are the top cyber security threats and solutions that you need to know.
Phishing and social engineering has been one of the most common threats in cyber security. This attack has been proven to be effective on small businesses; it also has multiple variants as well such as spear-phishing and BEC (Business Email Compromise). According to a data, around 80% increase has been seen in phishing attacks since 2020. Most hackers use this insider threats in cyber security because it is effective, low cost and low effort thing.
Business email compromise (BEC) poses a significant threat to small and medium-sized businesses. In these attacks, cybercriminals gain access to email accounts, typically through stolen credentials and use them to send fake invoices or payment requests to employees or trusted partners. Because these emails appear to originate from legitimate internal contacts, they are highly convincing and often result in financial losses that are difficult to recover.
There isn’t any hard and fast rule to block threats in cyber security completely but we can follow some strategies to avoid phishing. Multifactor Authentication (MFA) is used by most of the small businesses to create a shield against a phishing. On top, email security filters block malicious messages before they reach inboxes, while security awareness training enables employees to identify threats that slip through. Combined, these measures significantly reduce the success rate of phishing attacks.
Ransomware for SMBs has seen an exponential growth. Ransomware demands surged by 140% in 2024, particularly impacting the manufacturing and healthcare sectors. On top, most of the novice cybercriminals are taking Ransomware as a service from experienced hackers and using it as a threat in cyber security against small businesses. Once the system is hacked, these intruders encrypt the entire data, steal sensitive information and sell the data, if the ransom is not paid on time.
Endpoint detection and response (EDR) provide a solid foundation, but combining it with managed detection and response (MDR) or extended detection and response (XDR) introduces the human expertise required to rapidly contain ransomware threats. Equally critical are secure, offline backups, which allow organizations to recover operations without paying attackers.
Business email compromise (BEC) has emerged as one of the most expensive cyber threats facing small businesses. Unlike traditional phishing campaigns that target large audiences, BEC attacks are highly targeted. Cybercriminals pose as executives, suppliers, or trusted partners to deceive employees into transferring funds or disclosing sensitive information. Because these emails often lack malicious links or attachments, they can easily evade standard technical security controls.
Multi-factor authentication (MFA) reduces the risk of account compromise by preventing attackers from accessing email accounts, even if credentials are stolen. Email security solutions can identify and flag suspicious senders, while security awareness training teaches employees how to verify unusual or high-risk requests. When combined, these safeguards significantly lower the chances of a successful BEC attack.
As small businesses continue adopting cloud-based services, configuration errors have become one of the primary causes of data breaches. Minor missteps—such as improperly configured permissions or publicly exposed cloud storage—can leave sensitive information open to unauthorized access. Research suggests that human error accounts for approximately 95% of cloud security incidents.
To minimize cloud misconfiguration risks, small businesses should implement strong access controls and follow the principle of least privilege when assigning permissions. Regular security audits and automated configuration monitoring tools can help identify and correct errors before they are exploited. Enabling logging and alerts provides visibility into suspicious activity, while employee training ensures teams understand secure cloud setup practices. Together, these measures significantly reduce the likelihood of cloud-related data breaches.
Not all cyber threats originate outside an organisation—many arise from within. Insider threats involve individuals inside the business, such as employees or contractors, and can be either malicious or unintentional. Malicious insider incidents may include disgruntled staff stealing sensitive data or deliberately damaging systems, while unintentional threats often occur when employees accidentally expose information or fall victim to scams that grant attackers internal access. Small businesses, in particular, tend to operate on trust with lean teams, which can sometimes result in weaker internal controls. However, research shows that insiders contribute to approximately 19% of data breaches through misuse or human error.
For instance, an employee with access to customer records and financial data may leave the organization and take that information to a competitor or sell it for personal gain. In another case, an office administrator might receive a phishing email disguised as an internal IT request and unknowingly install malware, allowing attackers to breach the network from the inside. Because insiders already have legitimate access, their actions—whether intentional or accidental are often more difficult to detect using technology alone.
To mitigate insider threats, small businesses should enforce role-based access controls to ensure employees only have access to the data necessary for their jobs. Regular access reviews and prompt revocation of permissions when roles change or employees leave are essential. Security awareness training helps employees recognize phishing attempts and risky behaviors; while monitoring and logging user activity can detect unusual actions early. Additionally, establishing clear security policies and fostering a culture of accountability reduces both malicious intent and accidental data exposure.
The rapid growth of Internet of Things (IoT) devices in small business environments, such as smart thermostats, surveillance cameras, and industrial monitoring sensors has significantly increased IoT security vulnerabilities. Studies reveal that 67% of small businesses have encountered security incidents related to IoT devices, yet only 23% have implemented comprehensive IoT security policies. Cybercriminals often take advantage of weak or default passwords, outdated firmware, and poorly secured network connections to compromise these connected devices.
To reduce IoT security vulnerabilities, businesses should begin by replacing default credentials with strong, unique passwords for every IoT device. Regular firmware updates and patch management are essential to eliminate known security flaws. Network segmentation should be used to isolate IoT devices from critical business systems, limiting the potential impact of a breach. Maintaining an up-to-date inventory of connected devices and establishing formal IoT security policies further strengthen protection and reduce the risk of unauthorized access.
There are a range of threats that small businesses are facing and there is no fixed solution for every one of them. However, the best way to avoid AI-driven cyber-attacks is to have a solid security layers like Endpoint security, email filtering, secure backups, and continuous training of your team.
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