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The findings highlight a growing need for improved cybersecurity solutions and stronger government support
Small and medium-sized companies (SMEs) across the UK are collectively losing £3.4 billion a year to cybercrime, according to new research from Vodafone Business.
The report, Securing Success: The Role of Cybersecurity in SME Growth, reveals that the average cost of a cyberattack is £3,398 for small firms and rises to £5,001 for businesses with 50 or more employees. Despite these risks, 32% of SMEs still operate without any cybersecurity protection, and 52% of SME staff have never received formal cybersecurity training.
The frequency of cyberattacks is also increasing, with 35% of SMEs reporting incidents in 2024. Common threats include phishing (affecting 70% of businesses), ransomware (23%), and distributed denial of service (DDoS) attacks (20%). Many SMEs struggle to defend against these risks due to limited budgets and resources. 38% spend less than £100 a year on cybersecurity.
“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. 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,” said Nick Gliddon, CEO of Vodafone Business UK in a press release.
To support UK SMEs in building cyber resilience, Vodafone is offering a complimentary one-month trial of CybSafe, an AI-powered human risk management platform that provides cybersecurity education and behavioural training for up to 100 users.
The company has also issued some of policy recommendations aimed at government and industry stakeholders:
– Increase funding for the government’s Cyber Local initiative, which currently offers limited geographic coverage and insufficient support for SMEs.
– Raise awareness of the Cyber Essentials certification programme, which remains unknown to many SMEs despite being updated in 2022.
– Reform tax incentives to support cybersecurity investment by including software under capital allowances and expanding access to R&D tax credits.
– Encourage public-private partnerships, enabling smaller firms to benefit from the cybersecurity expertise of larger organisations.
Ibrahim Dogus, Co-Chair of SME4Labour, added that the report should act as a wake-up call: “Cybersecurity must be treated as a business-critical decision. Protecting SMEs means protecting jobs, innovation, and the UK’s economic future.”
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