Vodafone Business has revealed a concerning report about UK small and medium-sized enterprises (SMEs). These businesses are reportedly losing a staggering £3.4 billion annually due to cybercrime. Their report, “Securing Success: The Role of Cybersecurity in SME Growth”, outlines the financial impact and cybersecurity lapses plaguing these businesses.
The research indicates that the average cyberattack costs a small firm £3,398, escalating to £5,001 for firms with 50+ employees. Alarmingly, 32% of SMEs have no cybersecurity measures, and over half the staff have never undergone formal cybersecurity training.
The threat landscape is worsening: 35% of SMEs reported cyber incidents in 2024. Vodafone notes that common threats such as phishing, ransomware, and Distributed Denial of Service attacks present severe challenges. This situation is exacerbated by the constrained budgets of these businesses, with 38% spending under £100 annually on cybersecurity.
Nick Gliddon, CEO of Vodafone Business UK, emphasized the urgency of addressing this issue. “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,” said Gliddon.
Mitigating these challenges demands strategic solutions. To aid SMEs, Vodafone offers a free one-month trial of CybSafe, an AI-driven platform that provides cybersecurity education.
Moreover, policy recommendations aim to enhance protections: increasing funding for the Cyber Local initiative, broadening awareness of Cyber Essentials, and improving tax incentives for cybersecurity investments. Encouraging public-private partnerships is also suggested to leverage the expertise of larger organizations for smaller firms.
Ibrahim Dogus, Co-Chair of SME4Labour, highlighted the importance of this report, stating, “Cybersecurity must be treated as a business-critical decision. Protecting SMEs means protecting jobs, innovation, and the UK’s economic future.”
