How can small businesses protect themselves from cybercrime in 2026?

In short: small and medium-sized UK businesses can significantly cut their risk of cybercrime by using strong passwords with multi-factor authentication, keeping software updated, backing up data regularly, securing their network with firewalls and antivirus software, and training staff to spot scams. Phishing remains the most common attack method, and smaller businesses are increasingly being targeted because they often have weaker defences than large enterprises.

We’re constantly hearing about cyberattacks these days. Criminals are getting smarter, faster, and increasingly they’re using AI themselves to make their scams more convincing. Whether you run a five-person office in Leeds or a growing regional business, this is now something every client of ours needs to have on their radar.

Why does cyber security matter for small businesses?

A cyberattack isn’t just an IT problem – it’s a business problem. It can hit your bank balance, your reputation with customers, and in some cases land you in hot water with the regulators.

The Government’s most recent Cyber Security Breaches Survey found that 43% of businesses and 30% of charities had experienced a breach or attack in the past year, and phishing remains by far the most common route in. We’re also seeing more reports of smaller businesses being targeted specifically, because criminals know they’re less likely to have dedicated security teams watching for trouble.

It’s a common myth that being outside a big city means you’re somehow less of a target. In our experience advising businesses across Leeds and the wider Yorkshire area, that’s simply not the case – rural and small-town businesses, charities, and sole traders are all being targeted just as readily.

What are the biggest cybersecurity risks for a business?

• Money. Direct theft, ransom payments, and the cost of getting systems back up and running can add up quickly – and for a small business, that hit can be hard to absorb.
• Trust. Customers who feel their data hasn’t been looked after tend not to come back.
• Compliance. Under GDPR, failing to protect customer data properly can mean fines and legal headaches on top of everything else.
• Downtime. Even a few days of disrupted systems can cause real damage, especially if your business relies on several connected systems to function.
• Your know-how. Trade secrets, client lists, pricing models – anything that gives you an edge can be lost too.

What are the five key steps to protect your business from cybercrime?

We’re not IT specialists, but as your accountants we see the financial fallout when things go wrong – so here’s what we’d encourage every client to check off:

1. Sort your passwords out, and switch on multi-factor authentication. It sounds basic, but weak or reused passwords are still one of the most common ways criminals get in. MFA adds a second check beyond just the password, and it makes a real difference.
2. Keep software up to date. Those update reminders you keep dismissing? They usually contain security fixes. Outdated software is one of the easiest ways in for criminals.
3. Back up your data properly. If ransomware locks you out of your files, a recent backup means you’re not stuck deciding whether to pay up. Keep backups somewhere separate from your main systems, and actually test that you can restore from them.
4. Secure your network. Firewalls, antivirus software, and a bit of regular monitoring of network activity go a long way toward keeping unwanted visitors out.
5. Talk to your team. Most breaches start with a person, not a piece of technology – usually someone clicking a link they shouldn’t have. A bit of regular, practical training goes further than any amount of software.

Frequently asked questions

Are small businesses really at risk, or is it just large companies that get targeted? Small and medium-sized businesses are increasingly targeted precisely because they tend to have weaker defences than large enterprises. This applies just as much to rural and small-town businesses as it does to those in major cities.

What’s the most common way businesses get attacked? Phishing – scam emails or messages designed to trick someone into clicking a malicious link or handing over login details – remains the most frequently reported and most disruptive type of attack.

What happens if customer data is breached under GDPR? Businesses that fail to adequately protect customer data can face regulatory fines and legal consequences under GDPR, on top of the direct costs and reputational damage caused by the breach itself.

Do we need expensive software to stay protected? Not necessarily. Many of the most effective protections – strong passwords, multi-factor authentication, regular software updates, tested backups, and staff awareness training – cost little or nothing to put in place. It’s about consistency, not budget.

The bottom line

None of this needs to be complicated or expensive to get right, but it does need to be done before something goes wrong, not after. If you’d like to talk through how prepared your business is – or just want a second opinion on where the gaps might be and what we’ve already put in place at KN to protect our own business – please get in touch. We’re always happy to help.

Written by: David Stansfield, Audit Director

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