The SMB Paradox: Most Targeted, Least Prepared for Cybersecurity
For years, the prevailing myth among small and midsize businesses (SMBs) was that they were too small to be a target. That myth has been definitively shattered.
The reality is sobering: SMBs now account for a disproportionate share of cyber incidents and data exposure.
In fact, research cited in the Guardz 2025 SMB Cybersecurity Report found that 43% of U.S. SMBs have experienced a cyberattack, including 27% hit within the past year.
While enterprise organizations have fortified their environment with large budgets and dedicated 24/7 security teams, attackers have shifted toward the path of least resistance ‒ the small business.
And this is not confined to one region. Whether you operate in the UK, across Europe, or in North America, data privacy and cybersecurity expectations keep rising, shaped by customer requirements, cyber insurance pressure, and regulatory frameworks such as NIS2 and the UK's Data (Use and Access) Act.
The Growing Gap: Complexity vs. Capability
The vulnerability of the SMB sector isn’t just about a lack of will; it’s a convergence of three specific pressures:
- Aging, siloed technology: Many SMBs rely on disparate security tools. Separate systems that don’t communicate. This creates blind spots where attackers can hide.
- The resource vacuum: With the cybersecurity skills gap at record highs in 2026, SMBs struggle to manage complex security stacks. One reason the gap persists is that many SMBs still run security as a side job. The Guardz research found 52% rely on untrained staff or the business owner to handle critical security functions. (PR Newswire)
- The AI multiplier: AI-driven attacks are no longer theoretical. Automated tools now allow attackers to scan, exploit, and pivot across fragmented defences at machine speed, far faster than manual IT teams can realistically respond. (This trend is also reflected in broader SMB coverage like ITPro’s reporting on the wave of attacks hitting U.S. small businesses).
A Grounded Perspective: What to Prioritise
The goal for an SMB shouldn’t be to buy more tools, but to ensure their tools work as a single, cohesive unit. To reduce risk and strengthen data privacy outcomes, SMBs should prioritise these four foundational pillars:
1. Identity-First Defence
In 2026, attackers don’t break in; they simply log in. Compromised credentials remain the primary entry point for breaches.
The Strategy: Implement Multi-Factor Authentication (MFA) that extends beyond the office to every remote login and cloud application, for example WatchGuard AuthPoint MFA.
The Why: This ensures that even if a password is stolen, for example via an AI-crafted phishing email, the front door remains locked with a second, secure factor.
2. Secure Environments for a Mobile Workforce
Work is no longer a place; it’s an activity. SMBs often leave gaps when employees move between the home office and corporate headquarters.
The Strategy: Secure the edges of your business. This means ensuring endpoint protection and encrypted Internet connectivity are always active, regardless of where the employee is. If you want a concrete example for SMBs to reference, solutions like WatchGuard Endpoint Security or WatchGuard EPDR are designed specifically for this.
The Why: Consistent protection that follows the user, allowing them to work safely anywhere, any time. Closing the gaps created by aging hardware that only protects you when you’re in the office.
3. Cross-Platform Visibility and Automation
Small teams cannot monitor four different dashboards at once. In a modern threat landscape, your network and your devices must share intelligence.
The Strategy: Transition to a unified security approach where your network firewall, endpoint protection, and identity management are managed through one console. This is the operational value behind approaches like WatchGuard's Unified Security Platform.
The Why: Automatically responding to incidents reduces response time and man hours. For example, when a laptop is compromised on a public Wi-Fi network, your system should automatically recognise the threat and quarantine that device before the infection can cause harm.
4. Managed Detection over Manual Monitoring
The most important point: If you don’t have a 24/7 internal security team, don’t pretend to.
The Strategy: Partner with a managed service provider (MSP) that offers MDR (Managed Detection and Response), or adopt an MDR service built for MSP-delivered outcomes. A straightforward example is WatchGuard MDR, and for teams that need coverage across existing security tools, WatchGuard Open MDR expands detection and response without forcing rip-and-replace.
The Why: Modern threats move at machine speed. Seemingly minor, disconnected events may be an early indicator of a coordinated attack. Automated AI tools paired with trained analysts can detect anomalies, such as an employee account logging in from multiple countries, and terminate the session instantly.
Notably, SMBs that operationalise readiness tend to limit impact. The Guardz report found 80% of SMBs with a formal incident response plan were able to avoid major damage during an attack.
What matters most
Cybersecurity is no longer a technical checkbox ‒ it is a core business continuity requirement. By moving away from fragmented technology and toward a unified, automated defence, SMBs can shift from being the most targeted to the most resilient.
The point is simple: stop chasing every new shiny object in tech and start mastering the integrated fundamentals that keep your business and your data safe.