Cyber Security for Small Businesses UK
Technology is advancing rapidly, leading to an increase in online threats. It's not just large businesses that are targeted; many small businesses are often seen as easier prey. This guide aims to help small businesses in the UK equip themselves with the knowledge and tools necessary to minimise the likelihood of falling victim to a cyber attack.
What is Cyber Security?
Cyber security involves protecting your digital devices and assets from theft, damage, and unauthorised access. It encompasses various elements, including devices, networks, data security, and awareness of phishing attacks.
Why Cyber Security is Important
Online threats are on the rise. According to GOV.UK, in the first half of 2025, four in ten UK businesses experienced a breach or attack in the previous 12 months. The good news is that many small business owners are taking steps to improve their cyber hygiene by acquiring the necessary knowledge.
The repercussions of a cyber attack can lead to financial loss, data breaches, damage to reputation, and legal penalties.
Common Cyber Threats
While some cyber attacks are well known, many can be very convincing. Here are some of the most common types of attacks:
Phishing
Phishing is the most common type of cyber attack and employs various strategies to infiltrate systems for data and financial gain. Email phishing scams may appear legitimate, often disguised to trick recipients into believing they are from a reputable company urging them to click a link.
Typically, scammers use scare tactics with phrases like "your account will be suspended" or "you have been charged £x amount." Any emails demanding urgent action should be carefully reviewed before clicking any links. A simple way to verify the legitimacy of an email is to check the sender's address or contact the company directly (using contact details from their official website, not from the email).
Scammers may also pose as managers or directors, urging employees to purchase gift cards or similar items—this is almost always a scam.
Malware/ Ransomware & Viruses
These threats can be extremely dangerous, as they can lock down your computer systems. They are often disguised within files downloaded from the internet and can infect computers and servers. It's crucial to take extra precautions when downloading files and ensure they come from a legitimate source.
Ransomware is particularly distressing because it exploits panic over data loss and operational halts, demanding payment to unlock systems. However, paying may only lead to further demands in the future.
Utilising firewalls and robust cyber security software can significantly reduce the chances of these attacks occurring.
Types of Cyber Security To Protect Your Small Business
Whilst this might all sound a little frightening, there are plenty of precautions businesses can take to protect themselves.
Network Security
Most businesses operate on a network of connected devices and computers that share data, information, and internet access. Protecting this network is crucial because company files and customer data are at risk. Basic cyber security measures such as firewalls, antivirus software, encryption tools, and VPNs are essential for securing your network. Think of it as locking your digital door and activating an alarm so that only authorised users can access your company's network.
Application Security
If you use any sales platforms, point-of-sale (POS) systems, or applications that store and process customer data, it's vital to ensure the application remains secure. This acts as a front door to sensitive data, so implement strong password management and use authentication apps.
Information Security
Protecting sensitive data is critical. This could entail securely storing physical documents and shredding them when no longer needed. Ensure all digital data is backed up and only accessible to necessary personnel.
Cyber Security Tips for Small Businesses
There are many basic actions that can effectively protect your business without incurring significant costs. Fancy cyber security systems aren't necessary. Here are some of our top tips:
Strong unique passwords - Set robust and unique passwords that are not reused across different accounts or software. This effectively locks the digital front door of your business.
Regular software updates - Software updates often contain security patches that address vulnerabilities. While they can be inconvenient, they should never be postponed.
Antivirus software - Investing in good antivirus software can provide essential protection and is relatively inexpensive. For businesses that deal in large amounts of data, stronger security may be required and may benefit from a leased line.
Data control - Limit access to customer and business data. Only essential personnel should have access to specific areas of the digital business.
Secure Wifi - Ensure that your Wi-Fi is secure, as it can be a gateway for unauthorised access to your network. If you are a small business looking to offer Wi-Fi services to customers, consider selecting a business broadband package that includes secure guest Wi-Fi options.
Regular data back up - Backing up your business data regularly should be standard practice. This ensures that if you lose access to your data, you can easily recover it from a backup.
Employee training - Providing knowledge to your employees can mitigate most potential threats. Your onboarding process should cover password security, proper use of IT equipment, awareness of company procedures, and identifying phishing scams. A valuable resource for training is the Cyber Essentials Certification.
Responding to a Cyber Attack
Avoiding a cyber attack is not always possible, as scammers frequently evolve their tactics to gain access to data they can exploit for financial gain. Small businesses are often targeted because they are perceived as easier targets.
In the event of a breach, here is practical advice to respond and limit damage:
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Detect - The first step is to identify where the breach has occurred and what information may have been compromised.
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Isolate - Once you've detected the breach, work to isolate it from other parts of the business. Focus on reinforcing the security of your other digital assets.
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Remove malware - Eliminate any malware or collaborate with a reputable expert to find and remove the threat.
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Data backup - Once all systems are secure, restore everything from your most recent backup.
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Notify the ICO - You are legally required to notify the Information Commissioner's Office (ICO) under the Data Protection Act 2018. Failing to do so may result in hefty fines.
ICO Data Breach Assessment Checklist
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Is it a personal data breach? - This includes data such as names, addresses, financial information, health information, and email addresses.
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Could this breach harm someone? - If the breach could potentially lead to fraud, financial loss, loss of confidentiality, or emotional distress, it should be reported.
If the breach involves any of the types of information mentioned, it is likely that you will need to report it to the ICO. Make sure to document what happened, the timeline, the data involved, the actions taken to secure the breach, and how the breach affects both the business and individuals.
Who Are The ICO?
The Information Commissioner’s Office (ICO) is an independent authority responsible for enforcing information rights and data protection. Under UK GDPR law, businesses must report breaches within 72 hours of becoming aware of them. This law aims to protect individuals and enhance overall data security, with substantial fines imposed on businesses that fail to comply.
Do I Need To Report Every Breach To The ICO?
If the data breach you’ve identified has remained within your internal systems and poses no risk to individuals, there is no obligation to report it. However, it may be prudent to document the incident internally and implement security improvements.