Small businesses across the UK are dealing with a sharp rise in cyberattacks, and a new report warns that artificial intelligence is set to make the problem worse. According to a recent ESET study highlighted by techradar.com, almost half of UK SMBs were hit by at least one security incident in the past twelve months, while a smaller share suffered multiple breaches.
The findings paint a familiar picture for resource-stretched teams. Crooks are still leaning on classic entry points, and ESET argues that criminals are now layering AI onto these well-worn techniques, raising the stakes for businesses that have not yet locked down the basics.
The Numbers Behind the ESET 2026 SMB Cyber Risk Report
ESET surveyed 500 UK small and medium-sized businesses for its 2026 SMB Cyber Risk Report. The headline figure is striking: 49 percent of respondents said they had experienced a security incident in the past year, and 13 percent of those reported more than one incident.
When asked what worried them most, respondents put AI-powered malware at the top of their list. The most frequently cited triggers of compromise were social-engineering emails, outdated software that had not been updated, credentials that were easy to guess, and little or no continuous oversight of systems. ESET also flagged broader operational struggles, including difficulty keeping pace with new threats, adopting emerging technologies such as AI, managing patches, and finding staff with the right security skills.
Why SMBs Are an Attractive Target
SMBs are often seen as softer targets than large enterprises, and the economic stakes in the UK are significant. The report notes that small and medium-sized businesses contribute more than half of the UK's private-sector turnover, roughly £2.8 trillion, which makes them both a frequent target and a tempting one.
Jake Moore, Global Cybersecurity Advisor at ESET, summed up the challenge in a comment carried by techradar.com. He noted that while AI will help criminals accelerate their operations, the underlying playbook, like tricking staff and abusing software flaws, will largely remain the same. His takeaway is that until organisations tighten the fundamentals, smaller businesses will remain easy pickings for attackers looking to steal data and turn a profit.
What It Means for Resellers and Hosting Providers
For web hosting resellers, WordPress shops, and cPanel-centric providers, this report is more than a news story; it is a roadmap to new service conversations.
- Managed security upsells: With poor credential hygiene and outdated software still driving incidents, resellers can package automated patch management, brute-force protection, and account hardening as paid add-ons.
- WordPress-specific safeguards: WordPress sites are frequent social-engineering and exploitation targets. Offering update services, web application firewalls, or malware scanning on top of cPanel can turn a commodity hosting plan into a security-oriented one.
- AI-aware support: SMB clients are anxious about AI-driven malware. Resellers who can explain, in plain language, what these threats look like in shared hosting environments earn trust faster than those who simply hand over a knowledge-base link.
- Training as a service: The report shows that employee awareness is a top spending priority. Resellers can bundle short security briefings or simulated phishing tests alongside hosting plans.
Where the Spending Is Heading
There is at least one encouraging signal in the ESET data. More than half of UK SMBs surveyed, 55 percent, said they plan to lift their security spend during the coming year. The leading investment areas are staff education and cloud security improvements.
For hosting resellers, that translates into a clear opportunity: the buying intent is there, but many small businesses still need help turning budget into action. Positioning security as an outcome rather than a product is often what closes the deal.
Key takeaways
- AI is accelerating familiar attacks rather than replacing them, so basics like patching, strong credentials, and monitoring still matter most.
- Resellers who bundle managed security and WordPress hardening into cPanel plans can directly address the top causes of SMB breaches.
- Training and cloud security are the two areas where SMBs plan to spend more, which is where resellers can add the most visible value.
- SMBs now expect proactive security guidance from their hosting partner, not just uptime and ticket replies.
Frequently asked questions
What did the ESET 2026 SMB Cyber Risk Report find about UK small businesses?
It found that 49 percent of 500 surveyed UK SMBs experienced a cybersecurity incident in the past year, with 13 percent of those hit more than once, and that AI-powered malware was the top concern.
What are the most common causes of cyber incidents for UK SMBs?
According to the report, social-engineering emails, outdated software, easy-to-guess credentials, and limited monitoring were the leading causes of attack.
Are UK SMBs planning to spend more on cybersecurity?
Yes. The report states that 55 percent of UK SMBs expect to increase their security budgets over the next 12 months, with staff training and cloud security as top priorities.
How does this affect web hosting resellers and WordPress providers?
It points to clear demand for managed security, patch management, WordPress hardening, and AI-aware support, all of which can be layered on top of standard cPanel or managed WordPress plans.
Will AI change the kinds of attacks SMBs face?
ESET says AI will mainly help criminals speed up attacks built on existing tactics like phishing and software exploits, rather than introduce entirely new attack types.
Source: techradar.com