UK’s small and medium-sized businesses (SMEs) lose around $4.3 billion (£3.4 billion) annually due to a lack of cybersecurity for SME solutions, highlighting growing financial and business risks from frequent and sophisticated cyberattacks, according to a new Vodafone Business report.
Cybersecurity for SME is a critical issue, with reputational damage, system downtime, and data breaches adding to their financial burden.
Vodafone UK’s report shows 35% of SMEs experienced at least one cyberattack in 2024, with more than 28% faced one and five attempts, and 6% faced up to 10 attacks in that same year.
Cost of Cyber-Attacks on SMEs
Key obstacles to these vulnerabilities include limited budgets, lack of in-house expertise, and competing priorities, preventing SMEs from adopting strong cybersecurity protocols. SME cybersecurity concern grows as cybercrime continues to target these businesses with greater frequency.
Over half – almost 52% – of UK SME employees have not received any cybersecurity SME training, and nearly a third – almost 32% – of SMEs have no defense systems in place at all.
Nick Gliddon, CEO of Vodafone Business UK, indicates that the investment in cybersecurity solutions for SMEs is a business necessity, saying, “SMEs are the backbone of our economy, yet they are losing a staggering £3.4 billion annually due to inadequate cybersecurity. In today’s rapidly-evolving digital landscape, cyber threats are becoming more sophisticated, and SMEs are increasingly in the crosshairs of cybercriminals.”
Cybersecurity SME requirements are brought into focus by survey results, highlighting surprising statistics:
- 38% of SMEs allocate less than $125 (£100) per annum for cybersecurity.
- 64% of SMEs have employees who work off-site, and 60% allow employees to use personal information technology devices in the workplace, leaving them susceptible to cyber assault.
- Cybercriminals have attacked one out of every five remote workers (19%).
These weaknesses are further combined by the increasing number of remote workers and a lack of comprehensive cybersecurity solutions. Vodafone’s report echoes the need for improved cybersecurity solutions for SMEs, including government-backed initiatives to empower businesses to fight back against these threats.
The report also sets out several key cyber-attacks threatening SMEs, including phishing (70% of organizations), ransomware (23%), and Distributed Denial of Service (DDoS) attacks (20%) that disrupt business processes and play with confidential data.
Vodafone Business also offers a series of policy suggestions in support of aiding SMEs in cybersecurity:
- The wider rollout of the government’s Cyber Local scheme as a way to offer bespoke guidance to SMEs.
- Maintaining heightened awareness campaigns such as the Cyber Essentials initiative to enhance SMEs’ consciousness on cybersecurity.
- Introducing tax relief to incentivize companies to invest in cybersecurity, simplifying access to tax relief for enablement tools and software.
- Encourage public-private collaboration to aid SMEs in giving top priority to cybersecurity.
Cybersecurity is Critical for SMEs
Cybersecurity for SME is business-critical, with most struggling to recover from major cyber-attacks. According to techUK, 28% of SMEs said one cyberattack could shut them down, highlighting the urgent need for fortifying cybersecurity solutions for SMEs.
Greater cooperation among industry leaders, government, and business to provide SMEs with support is needed. With rising cyberattacks and the costs becoming expensive, SME cybersecurity is important to help preserve financial stability and speed economic growth.
Inside Telecom provides you with an extensive list of content covering all aspects of the tech industry. Keep an eye on our Cybersecurity sections to stay informed and up-to-date with our daily articles.