How the Channel Can Help Solve the SMB Cyber Security Challenge

In today’s evolving cyber security landscape, small and medium-sized businesses (SMBs) are the most vulnerable segment of the UK’s digital economy. Like larger enterprises, they rely heavily on technology, but unlike their bigger counterparts, they often lack the skills, sophistication, and budgets to properly protect themselves from cyber threats. This is where “the channel” comes into play – a network of partners, including Managed Service Providers (MSPs), resellers, and technology vendors, who work together to deliver tailored cyber security solutions to businesses like yours.

While the collapse of an SMB due to a ransomware attack may not make national headlines like the NHS WannaCry attack, or seem as catastrophic as the prospect of state-sponsored hackers taking down critical infrastructure, SMBs are easier and more frequent targets for cybercriminals seeking quick wins. In fact, 99 per cent of attack attempts in the UK are aimed at SMBs, with attackers demanding ransoms based on the company’s turnover, making them more likely to pay.

SMBs represent the backbone of the UK economy, contributing significant value through their intellectual property, innovation, and customer data. Yet, this wealth of invaluable data makes them prime targets for cyber-attacks. The fact is, UK SMBs are sitting on gold mines of highly valuable information which is extremely vulnerable to theft and exploitation by cybercriminals.

The impact of this vulnerability goes beyond just individual companies. With one in two organisations experiencing a cyber-attack in the last three years, according to research by SoSafe in 2023, and 60 per cent of SMBs that suffer an attack going out of business within six months, the ripple effect on the broader economy is profound. Cybercriminals know this, and they exploit it, particularly with ransomware where almost half of SMBs end up paying the ransom, only to remain vulnerable to further attacks.

For cybercriminals, SMBs are soft targets, and the cumulative damage caused by these attacks isn’t just a business issue – it’s a national concern.

The Problem SMBs Face

The challenges for SMBs go beyond just the increasing volume of cyber-attacks. Here are a few of the key issues they face:

• Limited resources

Many SMBs don’t have the budget to hire dedicated cyber security staff or invest in expensive security tools.

• Lack of expertise

Cyber security is a rapidly evolving field, and SMBs often lack the in-house knowledge to keep up with the latest threats.

• Complex regulatory requirements

From GDPR to industry-specific standards, SMBs are under pressure to comply with a range of regulations, which can be difficult without the right guidance.

• Expanding attack surfaces

The shift to remote work and the use of cloud services have expanded the potential entry points for attackers, making it harder to secure SMB environments.

Without the right support, SMBs are left exposed to ransomware, phishing, data breaches, and other cyber threats. Many businesses only realise the extent of these threats after it’s too late. To tackle these challenges, SMBs need tailored solutions that match their size and resources.

Fortunately, there are simple, effective steps that SMBs can take to protect themselves – cyber security doesn’t have to be overwhelming or costly. According to the Cyber Security Breaches Survey 2024 conducted by the Department of Science, Innovation & Technology, 84 per cent of breaches originate from phishing emails and human error. Even basic security awareness can significantly reduce this risk. By building a culture of cyber security awareness, SMBs can empower employees to recognise and respond to phishing attempts, turning the workforce into a “human firewall” against potential attacks.

For more complex security needs, MSPs offer crucial support, tailoring cybersecurity solutions to meet the specific requirements of businesses as they grow and evolve.

Are MSPs Right for Your Business?

Addressing these challenges requires investing in the right technologies, encouraging a cyber security focused workforce through awareness, and leveraging external expertise when necessary. While MSPs play a crucial role in securing businesses, not every SMB may be ready to invest in these services just yet. SMBs come in different shapes and sizes, and so do their cyber security needs. Here are three categories of SMBs and what they typically require:

• Microbusinesses (0-9 employees)

These very small businesses often operate with limited technical resources and are influenced by consumer tech trends. For them, it’s essential to use products that are secure straight out of the box. Many SMB focused cyber security solutions, including Microsoft 365 Business Premium, offer built-in security features that provide a good foundation without breaking the bank.

• Small businesses (10-99 employees)

These businesses are at a stage where outsourcing to an MSP can be highly beneficial. They probably don’t have the resources to maintain in-house security expertise, but MSPs can provide packaged solutions like email security, backup and recovery, connected secure devices, secure collaboration tools, secure internet, and other key security services. For these businesses, MSPs offer scalable, affordable cyber security options tailored to their needs.

• Medium-sized businesses (100-499 employees)

Larger SMBs often have internal IT teams but need additional cyber security expertise for advanced protection. MSPs can support them by offering specialised services such as advanced threat detection, XDR and/or MDR (Managed/Extended Detection and Response), and compliance solutions, working alongside their internal teams to provide robust security.

Off-the-Shelf Solutions for Cyber Security Awareness

While some smaller businesses may find MSPs unaffordable, there are plenty of off-the-shelf software packages available that can help employees understand and recognise cyber-attacks. Many SMBs, for instance, already use Microsoft 365, but often on the most basic, low-cost licenses. Upgrading to Microsoft 365 Business Premium gives SMBs out-of-the-box security features, including:

• Multi-factor authentication (MFA)
• Device management
• Advanced threat protection
• Data encryption

This baseline of security helps smaller businesses be “good,” and allows them to raise the bar to “better” or “best” security by layering on additional services from an MSP partner when needed.

The Good-Better-Best Framework

To help SMBs improve their security posture, it’s essential to take a flexible, layered approach. Rather than overwhelming businesses with complex solutions from the outset, the good-better-best framework allows them to build their defences step by step, addressing critical security needs first and adding advanced layers as they grow.[1]

These recommendations are based on current market conditions at the time of writing, but it’s important to note that the landscape changes rapidly.

1.       Good: Laying the Foundation

Every SMB needs a solid foundation of basic security measures to protect against the most common threats. As a minimum, we recommend:

• Network Firewall

Controlling incoming and outgoing network traffic to block unauthorised access.

• Email and DNS Filtering

Blocking spam, phishing attempts, and access to harmful websites.

• Multi-Factor Authentication (MFA)

Adding an extra layer of security by requiring additional verification methods.

• Endpoint Protection

Securing devices such as phones, laptops, and servers against malware and viruses.

• Regular Backups

Ensuring data is recoverable in case of an attack, minimising downtime.

• Training and Awareness

Educating employees on recognising phishing attempts and reducing risks from human error.

• Admin Rights Management

Regularly reviewing and controlling access to sensitive data.

These steps form the backbone of a strong cyber security posture, providing essential protection against everyday threats.

2.       Better: Strengthening Defences

Once the foundational measures are in place, SMBs can take their security to the next level with additional tools and processes:

• Patch Management

Regular software updates to close security gaps and prevent attacks on outdated systems.

• Extended Detection and Response (XDR)

Correlating data across multiple layers (endpoint, network, email) for early threat detection and rapid response.

• Incident Response Retainers

Having access to expert support in the event of a major security breach.

This stage provides more comprehensive protection, reducing the likelihood of successful attacks and improving response times when threats do arise.

3.       Best: Achieving Comprehensive Protection

For businesses looking for complete peace of mind, integrating cutting-edge cyber security solutions is crucial. At the “best” level, SMBs can deploy advanced technologies such as:

• Managed Detection and Response (MDR)

24/7 monitoring with expert analysis to detect and respond to incidents quickly.

• Active Threat Hunting

Proactively searching for hidden threats within the network.

• Zero-Trust Frameworks

Restricting user access to only what is absolutely necessary, assuming that all users and devices could be potential threats.

• Red Teaming and Penetration Testing

Simulating cyber-attacks to identify vulnerabilities before attackers can exploit them.

These advanced measures provide robust, full-spectrum protection, ensuring that SMBs can defend against even the most sophisticated cyber threats. For businesses needing additional security, there are further strategies and technologies that can be layered on as needed, depending on unique circumstances and risk levels.

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[1] This advice is intended as general guidance, and the specific needs of each business will differ. What’s best for one company may not be suitable for another. While the good-better-best framework provides a useful guide, it doesn’t fully reflect the complexity of cyber security posture management. Cyber security is not just about moving up tiers, but about implementing the right layers of protection for your unique circumstances. For example, a small business with a large cloud footprint might require more advanced security measures, even if they’ve already implemented some foundational protections. Each business must assess its own risks and tailor solutions accordingly.

Why Consider Partnering with an MSP?

It’s important to remember that cyber security is not a one-time investment but a continuous process of improvement. As the threat landscape evolves, so too must the solutions you deploy. By adopting the good-better-best framework, SMBs can layer their approach according to their specific needs, budget, and risk appetite.

While an MSP may not be necessary for every business, partnering with one offers significant advantages for SMBs, particularly in reducing the complexity of managing cyber security. Working with an MSP allows you to scale your cyber security without the need for in-house experts. Instead of dedicating precious resources to building and maintaining a full-time internal team, SMBs can rely on MSPs to handle their cyber security needs efficiently and affordably. This enables your team to stay focused on core business objectives, while still benefiting from:

• Reduced operational overhead

Partnering with an MSP means your team can focus on core business objectives instead of managing a complex technical stack.

• Access to expertise

MSPs bring advanced knowledge and tools that most SMBs cannot afford to maintain in-house.

• Better risk management

Working with an MSP can improve your ability to handle regulatory and compliance audits, as SLAs and third-party managed tools ensure you meet necessary standards.

• Cost efficiency

MSPs can offer services at a manageable cost, ensuring you always have access to up-to-date technology without worrying about maintaining outdated infrastructure.

At Giacom, we understand the unique needs of SMBs and the critical role that MSPs can play in ensuring robust, scalable, and proactive cyber security. Working exclusively through our partner network, we support MSPs with the tools and resources they need to help SMB clients build a resilient cyber security strategy, regardless of their size or complexity.

By working together, we help SMBs navigate the evolving threat landscape, ensuring they stay protected, resilient, and focused on their core business.