Why SMEs are at risk to cyberattacks and how to prevent them.

It’s national SME day on Friday AND cybersecurity month here at Fitzrovia IT so isn't it just the perfect time to highlight why SMEs are facing a growing wave of attacks! Once upon a time, SMEs were once considered too small to interest hackers. But that’s changed, and it’s still changing. You’re no longer too small, in fact it's possible its the reason you’re now the prime target.

According to a cyber security breach survey done in the past year by Gov.uk that 50% of small businesses and 70% of medium businesses in the UK experienced some form of cyberattack in the last year. If it wasn’t already clear how vulnerable SMEs are to cyberattacks, a study by Vodafone Business reveals that poor cybersecurity is costing UK SMEs a staggering £3.4 billion every year. In 2024 alone, more than a third (35%) of UK SMEs experienced a cyberattack. Of those targeted, 28% faced between one and five incidents, while 6% reported up to 10 attacks in a single year.

In this article, we’ll look at why cybercriminals are increasingly targeting SMEs, the specific threats they face, and the one solution to prevent it all.

Why SMEs Are a Prime Target

Limited Security Budgets

Unlike larger organisations that can invest heavily into experienced cybersecurity teams, many SMEs aren't able to allocate resources towards security. This leads to:

• Outdated security infrastructure that hackers can exploit known vulnerabilities into.
• Insufficient employee training because without regular cyber security training, employees may accidentally become entry points for attacks.
• Absence of dedicated IT team with cybersecurity experts.

A survey done by Markel UK to understand the cyberscape for SMEs revealed that 69% of UK SMEs lack a formal cybersecurity policy, and 43% do not provide cybersecurity training to their employees. That’s not down to neglect, it's because many SMEs simply don’t have the resources to put these protections in place.

Outdated Systems and Lack of Expertise

Many SMEs continue to rely on legacy systems that are no longer supported nor updated. Cybercriminals exploit known vulnerabilities in outdated software to gain access to sensitive business data.

Without in-house cybersecurity, SMEs fail to recognise risks and make them easy targets for attackers.

Evolving Attack Strategies

Cybercriminals are constantly evolving as employees opt to work remotely. While phishing, social engineering, and malware remain common, new tactics are emerging all the time. Tools like ransomware-as-a-service (RaaS) are making it easier than ever for less experienced hackers to launch sophisticated attacks.

As threats become more sophisticated, cybercriminals are also using AI to create highly personalised, deceptive attacks, which are becoming alarmingly realistic and increasingly (& sadly) effective at tricking employees. In response, businesses need to increase cybersecurity investments and prioritise education and upskilling to stay ahead.

Common Cyber Threats Facing SMEs

Cybercriminals often target small businesses because they may have fewer defences. Here are the key threats you need to know about:

Phishing Attacks

Phishing is the most common cyber threat for SMEs. Attackers pretend to be trusted organisations to trick staff into:

• Clicking malicious links
• Entering passwords on fake websites
• Downloading malware

Ransomware

Ransomware attacks have risen by 70% in the UK this year. Criminals lock your data and demand payment to unlock it, stopping your business from running.

Insider Threats

These come from within the business, either by accident or on purpose. Insider Threats include when staff may:

• Share sensitive info by mistake
• Be tricked by scams
• Leak data for money

Supply Chain Attacks

Hackers may target smaller suppliers to gain access to larger companies. Weak security in an SME can impact your entire network.

The Impact of a Cyberattack

Cyberattacks can seriously damage your business whether its financially, legally, and reputationally.

Financial Loss

The average cost of a cyberattack for a UK business in 2024 is £10,830. Costs can include:

• Fines for data breaches
• Lost sales during downtime
• Legal fees and compensation

The harsh reality is that some SMEs never recover financially from being hit by a cyberattack.

Reputation Damage

A data breach can destroy customer trust.

• 60% of consumers would stop using a business after a breach
• Negative press can make it hard to win new clients

Business Disruption

Cyberattacks can shut down your operations. You may face:

• Delays in service or sales
• Lost business data
• Long recovery times without a plan

Legal Trouble

Failing to protect customer data can lead to huge fines. Under GDPR, penalties can reach £17.5 million or 4% of global turnover.

How SMEs Can Protect Themselves

At Fitzrovia IT, we are the best option for SMEs who don’t have the budget or the the internal IT team to protect themselves around the clock. We make your business’s security our priority and offer the kind of constant, expert-led protection that small businesses often struggle to access on their own. 

At Fitzrovia IT, we specialise in helping SMEs build strong, reliable cybersecurity foundations. As a Cyber Essentials Certification Body and Assessor, we’re trusted to both implement and evaluate security controls across industries. We hold multiple ISO certifications, including ISO 27001 for information security. We offer many cybersecurity services from security architecture and device management to penetration testing and vulnerability management. These proactive solutions identify and resolve weaknesses before they become threats, so your business stays protected. Our expert incident response planning ensures you’re never left in the dark if an attack occurs, and we keep you fully compliant with changing laws and regulations.

We also partner with industry leaders to offer cutting-edge protection. Our collaboration with KnowBe4 brings tailored staff training, simulated phishing campaigns, and real-time tools like PhishER and SecurityCoach to keep your team alert and responsive. For secure communication, we work with Egress to protect sensitive data in motion which ensures emails and files are shared safely and accurately.

Fitzrovia IT brings everything together: certifications, cutting-edge tools, personal support, and deep expertise and the best part is they are all tailored specifically for SMEs. For small businesses that want to be protected without the cost or complexity of building their own in-house IT team, there’s no better or more complete solution.

Let us handle your cybersecurity, so you can focus on growing your business. Get in touch today.