Cyberattacks are a business problem, not just an IT issue. If you’re a small or medium-sized business (SME), the question is not if but when you will be attacked.
This guide provides a clear, non-technical action plan in plain language for UK business owners. It explains the threats you face and offers a structured defence plan to protect your operations, reputation, and future.
Understanding the Risk for UK SMEs
Hackers go where it’s easiest to steal. And for them, that’s usually a small business.
The Scale of the Threat
This threat isn’t just a theory.
The 2024 UK Cyber Security Breaches Survey revealed a worrying statistic.
42% of micro and small businesses reported a cyberattack in the last 12 months. This is because, in cyber criminals’ eyes, SMEs are considered “low-hanging fruit”.
They’re targeted for having less robust security and fewer resources to protect themselves.
The True Cost of a Breach
The initial cost is only the beginning. The real and long-term damage is much more destructive, and includes:
- Operational Disruption: Your business operations can come to a standstill, resulting in lost revenue and missed deadlines.
- Reputational Damage: When you lose customer data, you break your customer’s trust. 43% of attacked businesses confirm they lose customers as a direct result.
- Supply Chain Disruption: An attack on you can be used as a launchpad to your larger clients and business partners, wrecking your entire commercial supply chain.
Common Cybersecurity Threats
The most successful cyberattacks don’t involve fancy hacking. They involve the manipulation of people. Recognising these tactics is the first step in your defence strategy.
Phishing and Business Email Compromise (BEC)
Phishing accounts for 84% of all breaches.
The attacker poses as a trusted source – a supplier, a bank, even HMRC – to trick the victim into giving up their credentials.
And many modern phishing attempts don’t include links at all, which helps them slip past technical filters.
The most effective defence is procedural.
Implement a mandatory policy: require a phone call to a known number to verify any unusual financial request.
You can learn more with these 8 Ways to Keep Your Email Secure.
Ransomware Attacks
Ransomware is malware that locks up your critical files by encrypting them. Once that happens, you can’t access the data.
Criminals then demand payment for a decryption key. Increasingly, they use “double extortion” tactics – stealing your data first, then threatening to leak it unless you pay.
The National Cyber Security Centre (NCSC) advises against paying. It’s unlikely your data will be returned, and handing over money only funds and fuels further criminal activity.
You can read more about it in our article, Ransomware: The Threat Is Very Real.
A Practical Defence Plan
Adequate security is a continuous process that involves technology, procedures, and personnel. This framework is based on best practices in the UK.
Layer 1: Essential Technology Controls
This core set of tools establishes a baseline of security:
- Multi-Factor Authentication (MFA): MFA is the single most effective control you can put in place to help protect your data. MFA works by adding a second layer of authentication for a far stronger block. This helps to stop around 99.9% of account takeover attempts – even if a password is stolen.
- Robust Data Backups: The strongest defence against ransomware. A strong backup-and-restore plan is one defence that always pays off. The 3-2-1 rule is a simple way to do it: keep three copies of your data, use two different types of media, and store one copy safely off-site.
- System Health: Apply software updates and patches as soon as they’re released. This helps to close vulnerabilities. Every device should also run a firewall and an up-to-date antivirus.
- Access Control: Use a strong password policy (the NCSC recommends “three random words”) and apply the Principle of Least Privilege. That means giving employees access only to the data they need for their role. For more, explore the benefits of a password manager.
Layer 2: Robust Processes and Compliance
Guidance is for SMEs in the UK.
- UK GDPR and Data Protection: If you process personal information, the law requires you to protect it and have a mechanism in place to report a data breach to the ICO within 72 hours.
- Incident Response (IR) Plan: Presume a breach will occur. A documented IR plan sets out clearly what to do and allows you to respond quickly to reduce the damage.
- Cyber Insurance: In addition to having a documented IR plan, you may also want a financial safety net in the form of cyber insurance. It can help cover costs related to business interruption and crisis management.
Layer 3: Employee Training and Awareness
Your employees are central. They’re both your first and last line of defence.
- Ongoing Staff Training: Security awareness isn’t a one-time exercise. It has to be continuous. And it needs to adapt as new threats appear.
- A “No-Blame” Reporting Culture: Employees should feel safe reporting incidents or mistakes the moment they happen – without fear of reprisal. The sooner an attack is reported, the easier it is to contain.
Making Key Security Decisions
Managing and maintaining these layers can seem daunting. It’s all about making the right strategic choices.
Cloud vs. On-Premises Security
For most SMEs, using “Cloud First” services such as Microsoft 365 is safer than trying to manage on-premises servers and security.
That’s not a free pass, though.
The data you store in the cloud is still vulnerable to ransomware that can encrypt it, so you still need an independent, separate backup system.
In the cloud, you should still enable MFA and conditional access policies to help protect your accounts.
Working with a Managed Service Provider (MSP)
Modern cybersecurity is out of reach for most SMEs. That’s in terms of time, budget, and internal expertise. A working partnership with a Managed Service Provider (MSP) is a simple solution.
An MSP like Microbyte acts as your outsourced IT and cybersecurity department.
We provide round-the-clock monitoring, expert guidance, and the tools needed to manage a layered defence.
The goal is simple. We want to shift your cybersecurity from a constant battle to a proactive investment in business resilience.
Next Steps for Your Business
A layered approach to security is the most effective way to manage your cyber defence. As a starting point, you may want to refer to the following resources:
- Cyber Essentials Checklist: Download the Cyber Essentials Guide for an overview of the UK government’s baseline advice.
- Cyber Security for Small Business: Read our Cyber Security for Small Business article to discover the types of services and protections you can access.
Connect with Microbyte to learn more about your current position and identify areas where you may be vulnerable. We can also provide an easy-to-follow action plan.
