SMEs must do more to combat the growing threat of cyber attacks

We are calling on all SMEs to take simple steps to boost their cyber security and protect the personal information they hold, amid the growing threat of cyber attacks.  

Our own trend data reveals more organisations than ever are experiencing cyber security breaches that put people’s personal information at risk. Over 3,000 cyber breaches were reported to us in 2023, with the finance (22%), retail (18%) and education (11%) sectors reporting the most incidents. 

In a new report published today, we have analysed the data breach reports it received and shared lessons that can be learnt from common security mistakes.

In one example, a hacker was able to penetrate a retailer’s defences and install malware on its payment terminals – and therefore could harvest customers’ card details when they paid. On another occasion, a simple phishing email to a construction company compromised the personal information of over 100,000 people.  

The “Learning from the mistakes of others” report has practical advice to help organisations, including SMEs, to understand common security failures and take simple steps to improve their own security, preventing future data breaches before they can happen. 

Stephen Bonner, our Deputy Commissioner – Regulatory Supervision, said:

“People need to feel confident that organisations are doing as much as they possibly can to keep their personal information secure. While cyber attacks are growing more sophisticated, we find that many organisations are not responding accordingly and are still neglecting the very foundations of cyber security.

"As the data protection regulator, we want to support and empower organisations to get this right. If you do experience a cyber attack, we always encourage transparency as your mistakes could help another organisation to avoid a similar breach.”   

The report focuses on five leading causes of cyber security breaches: 

• Phishing – where scam messages trick the user and persuade people to share passwords or accidentally download malware.
• Brute force attacks - where criminals use trial and error to guess username and password combinations, or encryption keys.
• Denial of service – where criminals aim to stop the normal functioning of a website or computer network by overloading it. 
• Errors – where security settings are misconfigured, including being poorly implemented, not maintained and or left on default settings.  
• Supply chain attacks - where products, services, or technology you use are compromised and then used to infiltrate your own systems.

For each cause, the report explains how these attacks take place, some key considerations to mitigate the risk and likely future developments. It also includes case studies from our regulatory activities. 

Both we and the National Cyber Security Centre (NCSC) provide a wealth of further resources to support organisations to improve their security

Eleanor Fairford, NCSC Deputy Director for Incident Management, said:

“As more organisations report cyber incidents, it is ever-more crucial to have strong online defences to reduce the risk of falling victim and to protect personal information. 

The NCSC is committed to helping organisations raise their cyber resilience and we urge leaders to make use of the wide range of practical guidance and free services available on the NCSC website. If the worst should happen, we encourage reporting incidents to the authorities to access expert support and help break the cycle of crime.” 

If an organisation experiences a data breach as a result of a cyber attack, they should report it to us within 72 hours of becoming aware of it. 

Our web hub for small organisations also has lots of data protection advice aimed specifically at SMEs. It includes short video guides, practical checklists, and tools to help small businesses, including practical ways to keep IT systems secure.