Are Small and Medium-Sized Businesses Ready For Any Cyber Threats 2026 May Bring?

Cyber risk is a concern for businesses of all sizes, not just large enterprises. Small and medium-sized businesses in the UK continue to upgrade their digital operations, adopt cloud tools and support hybrid working. This means threats can evolve rapidly, disrupting productivity and leading to significant financial costs. Understanding these risks is essential for any business owner or IT leader.

As we head into 2026, below we break down the top 10 cyber threats facing UK SMEs, with practical steps you can take to stay protected.

1.      Phishing and Social Engineering Attacks

Phishing remains the most common way attackers infiltrate business systems. These attacks are increasingly sophisticated and are designed to look genuine and trusted, making it harder for employees to spot.

How to protect:

·         Provide regular employee cyber awareness training.

·         Enforce Multi-Factor Authentication (MFA) on all accounts.

·         Deploy email filtering and anti-phishing tools. Wavetree implements solutions like Barracuda to reduce phishing emails for our customers.

2.      Ransomware and Extortion

Ransomware attacks continue to be a major threat. Attackers encrypt company data and demand payment, sometimes paired with extortion. This is when you are threatened to leak stolen data.

How to protect:

·         Maintain regular, tested backups stored offline or in secure cloud storage

·         Use endpoint protection with behavioural threat detection. Wavetree offers Datto SIRIS for advanced detection and backup.

·         Restrict admin privileges.

3.      Supply Chain Vulnerability

Small and medium-sized businesses increasingly depend on third-party software, suppliers, and partners. A breach in one link of the supply chain can compromise your systems even if your internal security is strong.

How to protect:

·         Conduct vendor security assessments. Wavetree performs monthly security checks for customers. 

·         Monitor access rights and APIs.

·         Implement Zero Trust principles.

4.      Cloud Misconfigurations

As more SMEs move to cloud services (Microsoft 365, AWS, Google Cloud), misconfigurations like overly permissive access settings are a top cause of data exposure.

 How to protect:

·         Schedule regular cloud configuration reviews.

·         Apply least privilege access policies.

·         Use Cloud Security Posture Management (CSPM). Wavetree can set up Microsoft Defender for Cloud to prevent data leaks.

 5.      Credential stuffing and Brute Force Attempts

Attackers use bots to automate login attempts using stolen credentials. If employees reuse passwords across accounts, this risk multiplies.

               How to protect:

·         Enforce strong password policies.

·         Implement MFA. Wavetree guides customers through MFA setup for maximum protection. 

·         Detect and block repeated failed login attempts.

  6.      Human Error

Not all cyber threats come from outside. Employees can accidentally create vulnerabilities through the misuse of data, unsafe behaviour, or poor security habits.

How to protect:

·         Establish clear employee security policies.

·         Monitor and log unusual behaviours.

·         Provide regular refresher training. Wavetree offers phishing simulations and training to reduce mistakes.

7.      Remote Work Security Gaps

 With hybrid working the norm, more devices connect to business networks, and not all receive adequate security updates. Printers, webcams and personal devices become entry points.

 How to protect:

·         Network segmentation

·         Secure VPNs for remote access.

·         Authorise only approved devices. Wavetree performs monthly patch testing and reviews unusual activity with businesses.

8.      AI-Assisted Attack Tools

 While AI offers powerful productivity tools, attackers are increasingly using AI to craft more credible phishing emails, generate malware, and automate attacks.

 How to protect:

 ·         Keep up to date with threat intelligence

·         Deploy AI-powered defence tools. Wavetree uses Datto SIRIS for advanced protection and backups.

·         Educate staff on AI phishing variations.

 9.      Data Theft and Privacy Non-Compliance

 With GDPR and other data protection laws, a data breach isn’t just a security issue, it’s a regulatory one. Failing to protect customer and employee data can result in fines and loss of client trust.

 How to protect:

·         Data minimisation and encryption.

·         Maintain clear privacy policies. Wavetree is ISO 27001 and Cyber Essentials certified for data protection.

·         Regular compliance audits.

10.  Lack of Incident Response Preparedness

Many SMEs only realise they lack a proper response plan when an attack happens. Without a plan, recovery can be chaotic, expensive and damaging to reputation.

How to protect:

·         Develop and test Incident Response Plan (IRP).

·         Define roles, communication paths, and backups.

·         Conduct regular exercises. Wavetree’s technical consultants provide roadmaps for effective response planning.

Cyber Security Isn’t Optional, It’s a Business Priority.

Cyber threats will continue to evolve in 2026, but so do tools and strategies to defend against them. For UK SMEs, the key lies in preparedness, awareness, and layered security.

With the right IT support, businesses can confidently navigate the threat landscape and focus on growth without unnecessary risk.

Speak to Wavetree today to secure your business for 2026 and beyond.