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SMEs face larger cyber breach and ransomware risk than big firms
Verizon data shows SMEs saw four times more confirmed breaches than large organizations in 2024, and ransomware appeared in 88% of those SME incidents versus 39% at larger firms.
Insurance Business reports that many small business owners underestimate their cyber risk, a belief that can lead to reduced uptake of cyber insurance and greater financial exposure. The outlet cites Verizon's 2025 Data Breach Investigations Report, saying SMBs experienced four times more confirmed breaches than large organizations in 2024.
CRC Group's Christiaan Durdaller, national cyber and technology practice director, argues the targeting misconception is costly. He said SMEs are often easier targets because their defenses are thinner, and that ransomware-as-a-service and high-volume campaigns have made attacks on smaller companies more economical for criminals.
GlobalData is cited for the insurance gap, with only 16.8% of global SMEs holding a standalone cyber policy in 2025. The piece adds that ransomware showed up in 88% of confirmed breaches involving SMEs in 2024, compared with 39% for large organizations, and that Verizon found small businesses received one malicious email in every 323 delivered.
Durdaller also points to barriers beyond price, describing a trust and literacy gap around cyber coverage. He says many owners are unfamiliar with cyber insurance, and when policies are dense with technical language and exclusions, they tend to be set aside, while regulatory pressure has increased but has not fully reached typical small businesses.