We’ve posted a few pieces recently on why setting a realistic budget for cyber security is so important and we thought we’d follow that up with some real-life examples.
Small and medium-sized enterprises (SMEs) are increasingly being targeted by cybercriminals in 2025 and are facing a range of sophisticated threats that exploit limited resources and evolving technologies. Here’s a quick look at some of the most pressing cybersecurity incidents and trends that have affected SMEs so far this year:
Major Cybersecurity Incidents Impacting SMEs
- Co-op Supermarket Chain Cyberattack (UK)
A “highly sophisticated” cyberattack disrupted Co-op’s IT systems, leading to customer data theft, contactless payment failures, and empty shelves in Scottish stores. The breach also affected other major retailers like Marks & Spencer and Harrods, with investigations pointing towards hacker groups such as Scattered Spider and Lapsus$.
- Lockbit Ransomware Group Breach
The notorious ransomware gang Lockbit was itself hacked, resulting in leaked communications that revealed aggressive targeting of small businesses for extortion. This breach has temporarily disrupted Lockbits operations and exposed their tactics.
- Berkeley Research Group (BRG) Data Breach
A cyberattack on BRG compromised sensitive data related to Catholic Church sex-abuse cases. The attacker used impersonation tactics via Microsoft Teams to deploy Chaos ransomware, leading to concerns over the exposure of victims’ identities.
Emerging Cyber Threat Trends for SMEs
- AI-Powered Phishing and Deepfake Attacks
Cybercriminals are leveraging AI to craft convincing phishing emails and deepfake audio impersonations of executives, deceiving employees into authorising fraudulent transactions.
- Ransomware-as-a-Service (RaaS)
The availability of RaaS platforms has lowered the barrier for launching ransomware attacks, making SMEs prime targets due to their valuable data and often limited security infrastructure.
- Supply Chain Vulnerabilities
Attackers exploit weaknesses in third-party vendors to infiltrate SMEs’ systems, as seen in incidents involving compromised software packages on platforms like NPM.
- Business Email Compromise (BEC)
Scammers use AI to mimic emails from corporate partners and managers, leading to fraudulent financial transactions. In Australia, BEC attacks have increased by 7% year-on-year, with SMEs being particularly vulnerable.
Proactive Measures for SMEs
To mitigate these threats, SMEs should consider the following actions:
- Implement Multi-Factor Authentication (MFA)
Enhance account security by requiring multiple verification methods.
- Regular Employee Training
Your staff are your first line of defence and need to be educated on recognising phishing attempts and social engineering tactics.
- Secure Supply Chains
Vet third-party vendors for cybersecurity compliance and monitor for unusual activities. Are you in a supply chain for a major company? Are you facilitating a back door into their systems?
- Invest in AI powered security tools
Utilise advanced solutions capable of detecting and responding to sophisticated threats. H2 has a couple of suggestion here that are affordable to SMEs.
- Protective Monitoring
How do you know that your expensive solutions are protecting you? Do you know if you’ve suffered a stealth attack where the attacker has built a back door into your systems? Do you know if you’re hard-earned cash is being siphoned off? How vulnerable are you to an attack? A monitoring solution for SMEs is now available at an affordable price.
- Data Loss Prevention
Are you sure you know exactly where all your data is? Are you sure that documents attached to emails aren’t still sitting on your email server? Do you know if other documents have been downloaded from your cloud storage whilst your staff work from home, and then uploaded but a copy is still sitting on their laptop? Data proliferation over time is almost a given. Can you encrypt your sensitive data so that even if it’s stolen, it’s useless to the thief? An affordable solution now exists.
- Develop an Incident response and business continuity plan
No matter how well you protect yourself, you still need to prepare for potential breaches with a clear strategy to minimise impact and recover operations swiftly.
