Top 5 Cyber Threats Facing Businesses in 2025

Businesses depend on technology for everything, from storing data and facilitating transactions to managing customers, keeping track of employees, communicating with suppliers, and so on. However, this ‘digital dependence’, coupled with the growing sophistication of cybercriminals, leaves many businesses vulnerable to cyber attacks. Worse still, many remain blissfully unaware of their own vulnerabilities until it’s too late and the damage is done.

A single successful cyber attack can cause lasting financial and reputational harm. To stay protected, businesses should take a proactive approach: identify weak points, anticipate threats, and put backup plans in place. As cyberattacks evolve, so too should security measures to stay protected and prevent cybercriminals from gaining the upper hand!

This article explores the 5 most pressing cyber threats facing businesses in 2025, their potential impact, and practical steps to protect your business’s future.

Threat 1: Ransomware Attacks

Cybercriminals frequently target businesses that handle sensitive financial data, realising that the potential for profit is high. In a ransomware attack, hackers encrypt company data and demand payment to restore access – often threatening to delete, leak, or permanently block files if the ransom isn’t paid.

Attackers tend to strategically strike during busy, high-pressure periods to maximise disruption, such as targeting accountants at the end of the tax year. The impacts of a ransomware attack include downtime and operational disruption, loss of critical data and financial records, reputational damage, and loss of client trust.

Real-World Example: Wannacry (2017)

The WannaCry ransomware attack spread globally, infecting over 230,000 computers across 150 countries. It exploited a vulnerability in Microsoft Windows, encrypting files and demanding ransom payments in Bitcoin. The NHS was heavily impacted, with hospitals forced to cancel surgeries and appointments due to locked systems. Read more.

How to Protect Against Ransomware

Regular backups – Follow the 3-2-1 rule (3 copies, 2 formats, 1 offsite).
Employee training – Educate staff on phishing scams and suspicious links.
Incident response plan – Develop a clear, structured plan to respond quickly and minimise damage in the event of an attack.

Threat 2: Phishing Attacks

Phishing is a cyberattack where criminals trick people into revealing sensitive information or giving unauthorised access to systems. For example, a hacker might pretend to be a trusted colleague or executive to convince employees to click on malicious links, download malware, or share confidential data.

Common types of phishing attacks include:

Spear Phishing – Targeted attacks aimed at specific individuals or organisations.
Whaling or Business Email Compromise (BEC) – Scammers impersonate executives to authorise financial transactions or request sensitive data.
Credential Harvesting – Fake login pages designed to steal usernames and passwords.

Phishing attacks can result in data breaches, financial fraud, and malware infections, potentially compromising your entire business network. In short, a single mistake can open the door to serious security risks.

Real-world Example: Google & Facebook Scam (2013-15)

A Lithuanian scammer tricked Google and Facebook into wiring over $100 million by sending fake invoices while impersonating a legitimate hardware supplier. The attacker used a combination of phishing emails and business email compromise (BEC) to manipulate employees into approving fraudulent payments. Read more.

How to Protect Against Phishing and Social Engineering

Employee Training – Cybersecurity starts with awareness. Employees should feel confident in recognising and reporting potential phishing attempts.
Multi-Factory Authentication (MFA) – Adding an extra layer of security beyond passwords makes it harder for attackers to gain access. For example, requiring a one-time code (OTC) sent to a phone or an authentication app.
Email Filtering & Anti-Phishing Solutions – Tools like Microsoft Defender for Office 365 can detect and block suspicious emails before they reach employees.
Strong Password Policies – Encourage employees to use password managers, like NordPass or Dashlane, and to change passwords regularly.

Threat 3: Data Breaches (Internal & External)

A data breach happens when sensitive information is exposed, accessed, or stolen without authorisation. These breaches can be external, caused by hackers exploiting security vulnerabilities, or internal, from employees, whether accidentally or intentionally, compromising data security. Insider threats can be particularly dangerous as they involve people with legitimate access to company systems using data in a way they shouldn’t.

The impacts of a data breach include financial losses, such as fines, lawsuits, and data recovery costs. It can also lead to reputational damage and legal penalties for non-compliance with data protection laws.

Real-World Example: Equifax (2017)

In 2017, Equifax suffered a massive data breach due to an unpatched software vulnerability. This exposed the personal information of approximately 147 million people, including Social Security numbers, birthdates, and credit card details. Equifax later faced $700 million in fines and lawsuits. Read more.

How to Protect Against Data Breaches

Access Controls – Restrict data access based on job roles to minimise exposure.
Data Encryption – Secure data at rest and in transit to prevent unauthorised access.
Regular Security Audits – Monitor data access and usage to identify potential threats.

Threat 4: Business Email Compromise

Business Email Compromise (BEC) is a sophisticated scam where criminals impersonate trusted individuals, such as executives, employees, or vendors, to trick businesses into transferring funds or sharing sensitive data. BEC attacks often involve careful research and social engineering to make fraudulent emails seem legitimate.

Hackers use email spoofing, intercepted conversations, or compromised accounts to carry out these scams, leading to significant financial losses, unauthorised data access and business disruption.

Real-World Example: Toyota (2019)

A Toyota supplier lost $37 million due to a BEC scam where fraudsters posed as a business partner and tricked employees into transferring funds to fraudulent accounts. By the time the scam was discovered, the money was unrecoverable. Read more.

How to Protect Against BEC Attacks

Strict Verification Procedures – Always verify financial transactions through multiple channels before processing payments.
Employee Training – Educate staff to recognise suspicious emails and social engineering tactics.
Email Security Solutions – Implement anti-phishing and anti-spoofing technologies to detect fraudulent emails.
Two-Factor Authentication (2FA) – Secure email accounts with 2FA to prevent unauthorised access.

Threat 5: Supply Chain Attacks

Supply Chain Attacks occur when cybercriminals infiltrate an organisation by targeting its third-party vendors, suppliers, or service providers. These attacks can lead to data breaches, operational disruptions, reputational damage, and cascading effects across the entire supply chain. Since businesses rely on multiple external partners, a single weak link can compromise the security of the entire network.

Real-World Example: SolarWinds (2020)

In 2020, cybercriminals compromised the software updates of SolarWinds, a major American IT management company. This breach affected thousands of businesses and government agencies, including Microsoft and the U.S. Department of Homeland Security. Attackers inserted malicious code into SolarWinds’ software, giving them backdoor access to sensitive systems worldwide. Read more.

How to Protect Against Supply Chain Attacks

Vendor Risk Assessments – Evaluate suppliers’ cybersecurity measures before establishing partnerships.
Security Audits of Suppliers – Regularly audit third-party vendors to ensure compliance with security standards.
Data Encryption & Secure Sharing – Encrypt sensitive data and use secure channels for data exchange.

The Importance of Cyber Insurance

With cyberattacks and financial fraud on the rise, alongside the regulatory demands of GDPR, having robust security measures in place is more important than ever. By implementing a multi-layered approach and fostering a culture of security awareness within your organisation, you can drastically reduce your risk of falling victim to a cyber attack. However, even with the strongest defences, no business is immune to cyber threats, and this is where cyber insurance comes into play.

Acting as a vital safety net, cyber insurance helps businesses mitigate financial losses and recover swiftly in the event of a successful attack. While some professional indemnity policies offer limited cyber coverage, they often exclude key risks such as ransomware attacks, data breaches, and business interruptions. A standalone Cyber Liability Insurance policy provides comprehensive protection, ensuring businesses remain resilient against evolving cyber threats in 2025 and beyond.

Reach out to L Wood Insurance Broker

Cybersecurity is a critical business investment—not an afterthought. By understanding these threats, implementing robust security measures, and investing in cyber insurance, you can safeguard your business from potentially devastating cyber incidents.

Reach out to L Wood Insurance Brokers to explore our tailored cybersecurity solutions. For further learning and resources, visit the National Cyber Security Centre.