According to the latest UK government report, the cost of data breaches for SMEs has reached a record high in 2025, averaging £75,000 per incident. Rising regulatory fines, reputational damage, and customer loss are the primary factors driving these escalating costs.
This increase is largely attributed to stricter enforcement of GDPR regulations and the growing complexity of cyber attacks. Cybercriminals are becoming adept at exploiting vulnerabilities in SMEs, knowing that smaller businesses often have fewer resources for cybersecurity.
SMEs are advised to reinforce data protection measures, such as data encryption, strong access controls, and comprehensive staff training. Implementing certification schemes like Cyber Essentials provides robust frameworks to significantly reduce breach risks. Furthermore, SMEs should proactively engage in cyber risk assessments, identifying potential vulnerabilities and addressing them before exploitation.
Regularly updating cyber incident response plans, ensuring clear communication with stakeholders, and investing in cyber insurance can also help SMEs mitigate financial and operational impacts following a breach.
Read the full UK government's cybersecurity breaches survey.
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