According to a study by Vodafone Business, an average cyber incident costs a small business £3,398. For companies with 50 or more employees, that figure rises to £5,001, showcasing the increased risk faced by growing firms.
In 2024 alone, more than a third (35%) of UK SMEs experienced a cyberattack. Of those targeted, 28% faced between one and five incidents, while 6% reported up to 10 attacks in a single year.
However, the report also claims limited budgets, lack of in-house cybersecurity training and prioritising other tasks also add to SMEs vulnerability.
This comes as 52% of SME employees revealed they have never received cybersecurity training, alongside 32% of companies having zero cybersecurity protections at all.
Meanwhile, some 38% spend less than £100 a year on cybersecurity, the data added.
Vodafone Business UK CEO, Nick Gliddon, said: “SMEs are the backbone of our economy, yet they are losing a staggering £3.4billion 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. Investing in robust cybersecurity is no longer optional - it is a business imperative for protecting sensitive data, maintaining customer trust, and ensuring long-term resilience.
“At Vodafone Business, we understand the critical role SMEs play in driving innovation and growth, and we are committed to equipping them with the right tools and expertise to stay protected. However, SMEs cannot tackle this challenge alone.”
He added: “Greater collaboration between businesses, industry leaders, and government authorities is essential to providing these businesses with the resources, education, and support they need to strengthen their cyber defences. By working together, we can create a safer, more secure digital environment that empowers SMEs to grow with confidence in an increasingly connected world."
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