A guide to cybersecurity for UK businesses: Protecting your business in a digital age

Introduction to cyber security for business 

Cyber threats are constantly evolving, and SMBs are often prime targets due to perceived vulnerabilities. Implementing robust cyber security measures can protect your business from data breaches, financial loss, and reputational damage.  To effectively secure your business, it is important to understand the common threats, such as phishing attacks, ransomware, and malware. These can compromise sensitive information and disrupt operations. Educate your employees about these threats and the importance of strong, unique passwords and regular software updates.  Investment in reliable security solutions, such as firewalls, antivirus software, and encryption tools, is fundamental. Regularly back up your data to ensure you can recover quickly in case of an attack and implement regular security audits to identify and address potential vulnerabilities for additional protection.  Developing an incident response is also wise. This plan should outline steps to take in the event of a cyberattack, including how to communicate with stakeholders and restore affected systems.  Remember, cyber security is not a one-time effort but an ongoing process. Stay informed about the latest threats and best practices to keep your business secure. Prioritising cyber security will help safeguard your assets and maintain the trust of customers and employees. 

Type of cyber threats 

Cyberattacks can significantly impact business operations, finances, and reputation, and prior knowledge of prevailing threats is crucial to implement effective security measures: 

• Phishing attacks are the most common threat, where cybercriminals use deceptive emails or messages to trick employees into revealing sensitive information or downloading malicious software. These attacks can lead to data breaches and financial loss. 

• Ransomware is another major threat. This type of malware encrypts a victim’s data, rendering it inaccessible until a ransom is paid. Ransomware attacks can be devastating, causing significant downtime and financial damage. 

• Malware and viruses are also prevalent. These malicious programs can infiltrate systems, steal data, and disrupt operations. Malware can be introduced through various means, including infected email attachments, compromised websites, and unsecured networks. 

• Weak passwords and poor password management practices make SMBs vulnerable to cyberattacks. Cybercriminals can easily exploit weak passwords to gain unauthorised access to systems and data. 

• Unsecured networks pose another risk. Many SMBs may not have the resources to implement robust network security measures, making them easy targets for cybercriminals. Unsecured Wi-Fi networks, in particular, can be exploited to intercept data and launch attacks. 

• Denial of Service (DoS) attacks and Distributed Denial of Service (DDoS) attacks are also significant threats. These attacks overwhelm a business’s online services with traffic, causing them to become slow or completely unavailable. This can disrupt operations and lead to financial losses. 

• Insider threats should not be overlooked. Employees, whether malicious or negligent, can present significant risks to cyber security. Insider threats can lead to data breaches, theft of intellectual property, and other security incidents. 

Small business owners should also consider user-related security issues created by human error. The majority of data breaches (90%1) are the result of human error and 36% of these involve phishing that target human weakness. With personalised Human Risk Management (HRM) training – provided by reputable Managed Service Providers (MSPs) – can raise awareness and transform staff into the first line of defence. 

The cost of cyberattacks to business 

According to the 2023/24 government’s cyber security breaches survey, the average cost of the most disruptive cyber security breach for UK businesses was approximately £1,205. However, this figure can escalate dramatically for medium-sized businesses, reaching around £10,830.  The financial burden of cyberattacks on SMEs includes direct costs such as ransom payments, legal fees, and IT recovery expenses. Indirect costs, such as lost business opportunities, reputational damage, and the time spent managing the aftermath, further exacerbate the impact. For instance, a single cyberattack can cost an SME over £6,000 on average. In some cases, the cost to remedy an attack can be as high as £21,000.  Phishing remains the most common type of cyberattack, affecting 84% of businesses. Other prevalent methods include impersonation attacks and malware infections. These attacks not only disrupt operations but also erode customer trust and confidence, which can be particularly damaging for SMEs that rely heavily on their reputation and customer relationships.  The frequency of cyberattacks is also alarming. SMEs in the UK face up to 65,000 attacks daily, with about half of these businesses experiencing a surge in breaches in recent years. This surge is partly due to the increasing sophistication of cybercriminals, but also the growing digital footprint of businesses. 

Cyber security key terms 

Familiarisation with frequently used cyber security terms allow business owners and their employees to make informed decisions when choosing secure protocols, and boost confidence in their ability to detect breaches before they become a major problem.  While there is widespread awareness of the daily threats to SMEs, many businesses may be unfamiliar with other essential terms  

• Advanced persistent threat (APT) is a prolonged and targeted cyberattack designed to gain network access, and often used to steal sensitive information. 

• Antivirus software is used to detect, prevent, and remove malware infections on computers and other devices. 

• Attack vector refers to the collection of vulnerable points by which an attacker can gain entry to the target system.  

• Authentication is the process of verifying user identity to ensure it is genuine or valid, using either by a PIN/password, retina scan, or biometric scan – or a combination of these.  

• Botnet is a network of compromised computers used to carry out cyberattacks on other systems. 

• Endpoint Detection and Response (EDR), also known as endpoint threat detection and response (ETDR). EDR platforms (software and network instruments) can detect suspicious activity and protect computer endpoints from potential threats. 

• A firewall security system safeguards against attacks by monitoring and filtering the flow of network traffic, in accordance with an organisation’s security policies. 

• Identity and Access Management (IAM) can either grant or deny access to a certain system. This is a framework of business strategies, procedures, and technologies that dictate the management of electronic or digital identities.  

• Intrusion Prevention System (IPS) is a network security system created to control and prevent network penetration by malicious actors. 

• Man in the Middle Attack (MITM) is where an adversary hacks the communication between two parties without their knowledge – and can result in the sensitive data theft. 

• Spoofing, where someone or something pretends to be something else to gain a victim’s trust and network access to steal data or spread malware.  

• Spyware is a type of malware that spies on mobile and computer activity. It can access text messages, read file systems, redirect phone calls, access webcams, and even find the target’s geographical location. 

• Trojan horse is a misleading computer program that appears innocent but contains malicious code or program that allows the bad actor to hack a network system via a backdoor

Information security vs cyber security 

SMEs are advised to use a combination of information security and cyber security (that focus on different aspects of data security) to ensure comprehensive protection of business assets. While there is some overlap, the key difference lies in their scope. Information security is broader, covering all types of information, whereas cyber security is a subset focused on digital threats.   Information security encompasses the protection of all forms of data, whether digital or physical. It involves safeguarding information from unauthorised access, disclosure, alteration, and destruction. This includes implementing policies and procedures to ensure data integrity, confidentiality, and availability. Effective information security can help SMEs comply with regulations, such as the General Data Protection Regulation (GDPR), which mandates stringent data protection measures.  On the other hand, cyber security specifically focuses on protecting digital systems and networks from cyber threats. This includes defending against hacking, malware, phishing, and other cyberattacks. The National Cyber Security Centre (NCSC) provides resources like the Small Business Guide to help SMEs implement basic cyber security practices, like using strong passwords, regularly updating software, and training employees to recognise phishing attempts.  Integrating both information and cyber security measures can help protect operations, maintain customer trust, and ensure regulatory compliance. 

Copilot’s role in cyber security 

Microsoft Copilot plays a pivotal role in enhancing cyber security by leveraging AI to provide real-time threat detection and response. SMEs often lack the extensive resources and dedicated IT security teams that larger enterprises have, making them more vulnerable to cyberattacks. Copilot helps bridge this gap by offering advanced security features that are both accessible and effective.  One of the key benefits of Copilot is its ability to automate routine security tasks, such as monitoring network traffic and identifying potential threats. This automation allows SMEs to maintain a robust security posture without the need for extensive in-house expertise. Equally, it can provide actionable insights and recommendations to quickly address vulnerabilities and improve overall security infrastructure.  Copilot can also integrate within existing security tools and systems, creating a cohesive and comprehensive security environment. This integration ensures that all aspects of an SME’s digital infrastructure are protected, from email systems to cloud services. Furthermore, Copilot’s continuous learning capabilities mean it can adapt to new threats as they emerge, providing SMEs with up-to-date protection against the latest cyber risks.   

Cyber security best practice for SME’s 

There are plenty of online resources available to businesses with information about best practice on cyber security, including NCSC Cyber Aware. In addition, the Cyber Essentials UK government-backed scheme – launched in 2014 – establishes a framework of standards to best practice that helps businesses identify vulnerabilities and therefore guard against attacks.  There are two types of Cyber Essentials certification:  

• Cyber Essentials: This is the standard option involving self-assessment to find network weakness to prevent common attacks.  

• Cyber Essentials Plus: This is an enhanced version of the scheme that adds additional technical controls with more rigorous assessment process. 

Certification requires a thorough overview of security procedures. This introspection is essential to find security lapses and areas for improvement, as can save businesses money in long-term. Adherence to cyber security best practice is key to mitigate risks and ensure industry compliance to boost your reputation and build trust.  Role of managed services in cyber security  Managed Service Providers (MSPs) can be a huge asset that can enhance cyber security by providing specialised expertise, continuous monitoring, and cost-effective solutions. With these partnerships, SMEs benefit from advanced security measures and expert guidance, which are critical in today’s digital landscape.  Here are some key benefits: 

• Expertise and resources: Managed Service Providers (MSPs) offer access to a team of cyber security experts who are well-versed in the latest threats and technologies. This expertise is often beyond the reach of SMEs due to budget constraints. MSPs can implement advanced security measures, conduct regular vulnerability assessments, and ensure compliance with industry standards. 

• 24/7 monitoring and threat detection: MSPs provide continuous monitoring of networks and systems, which is essential for early detection and response to cyber threats. This round-the-clock vigilance helps prevent breaches and minimises the impact of any incidents. For SMEs, this means having a dedicated team that can respond to threats in real-time, reducing downtime and potential damage. 

• Cost-effective solutions: Outsourcing cyber security to an MSP can be more cost-effective than maintaining an in-house team. SMEs can benefit from the latest security technologies and services without the need for significant capital investment. This allows them to allocate resources more efficiently and focus on core business activities. 

• Scalability: MSPs can adjust their services according to customer needs and offer scalable solutions to accommodate business expansion. This flexibility ensures that SMEs remain protected as they scale up their operations. 

• Compliance and risk management: MSPs help SMEs navigate complex regulatory requirements and ensure compliance with data protection laws such as GDPR. They provide regular audits and reports, helping businesses manage risks and avoid penalties. 

By leveraging managed services, SMEs can enhance their cyber security posture, protect sensitive data, and ensure business continuity.  

Accreditation for your business 

As cybercrime continues to surge, more and more insurance companies are requesting Cyber Essentials Certification as a mandatory requirement. Similarly, there is greater focus on due diligence among large companies who are insisting that smaller suppliers demonstrate their commitment to cyber security to protect the entire supply chain from potential cyber threats.  The growing importance of data security means that the demand for Cyber Essentials Certification will only increase. Achieving this certification not only helps protect businesses against the majority of cyberattacks but also positions them ahead of the curve when certification becomes a requirement.  Obtaining Cyber Essentials can safeguard operations, build trust with larger partners, and enable SMEs to meet the evolving demands of this digital era.  Extech Cloud can help customers in any sector, including legal, finance, and healthcare industries, achieve a positive outcome with cyber assessments – and assist with insurance and professional body applications.  Investing in robust cyber security can provide peace of mind and significantly reduces the risks from cyberattacks. Nevertheless, SMEs can struggle to keep pace with the evolving threat landscape and compliance regulations, which highlights the need for continuous improvement in cyber resilience strategies and illustrates the value of expert oversight to ensure all bases are covered.