NFU Mutual: Businesses and retailers urged to step up cyber security with one in three SMEs hit by digital crime

Small Businesses Face Growing Cyber Threat as Attacks Surge, NFU Mutual Warns

Cyberattacks are escalating across industries, with small businesses increasingly in the crosshairs, according to new research from commercial insurer NFU Mutual. Released during Cybersecurity Awareness Month, the findings highlight the vulnerability of microbusinesses and sole traders, many of which lack adequate protection despite rising threats.

The study reveals that one-third of small businesses have experienced cybercrime, with half of those incidents occurring in the past 12 months. Alarmingly, 17% of respondents identified cyberattacks as one of their biggest current challenges, while the same proportion view them as a top threat over the next five years. Yet, more than one in seven small businesses admit to taking no specific measures to defend against online criminals.

The retail sector is particularly hard-hit, with 63% of surveyed retailers reporting past cyber incidents and 16% targeted in the last year alone. Customer fraud (33%) tops the list of threats, followed by phishing scams (28%), data breaches (21%), and malware (17%).

James Trevis, NFU Mutual’s cyber specialist, emphasized that small businesses often reliant on digital tools but lacking robust defenses are prime targets. While risks cannot be eliminated, he noted that basic security measures, such as two-factor authentication, software updates, and employee training, can significantly reduce exposure.

The findings underscore the urgent need for small businesses to prioritize cybersecurity, as attacks continue to rise in frequency and sophistication.

Source: https://identityweek.net/businesses-and-retailers-urged-to-step-up-cyber-security-with-one-in-three-smes-hit-by-digital-crime/

NFU Mutual cybersecurity rating report: https://www.rankiteo.com/company/nfu-mutual

"id": "NFU1776040120",
"linkid": "nfu-mutual",
"type": "Cyber Attack",
"date": "10/2025",
"severity": "60",
"impact": "2",
"explanation": "Attack limited on finance or reputation"

{'affected_entities': [{'industry': ['retail'],
                        'size': ['microbusinesses', 'sole traders'],
                        'type': 'small businesses'}],
 'description': 'Cyberattacks are escalating across industries, with small '
                "businesses increasingly targeted. NFU Mutual's research "
                'highlights the vulnerability of microbusinesses and sole '
                'traders, many of which lack adequate protection despite '
                'rising threats. One-third of small businesses have '
                'experienced cybercrime, with half of those incidents '
                'occurring in the past 12 months.',
 'lessons_learned': 'Small businesses often lack robust defenses despite being '
                    'prime targets. Basic security measures like two-factor '
                    'authentication, software updates, and employee training '
                    'can significantly reduce exposure.',
 'recommendations': ['Implement two-factor authentication',
                     'Regular software updates',
                     'Employee training'],
 'references': [{'source': 'NFU Mutual Research'}],
 'title': 'Small Businesses Face Growing Cyber Threat as Attacks Surge',
 'type': ['phishing scams', 'data breaches', 'malware', 'customer fraud']}