Top 10 Cybersecurity Threats Facing UK Businesses in 2025
The Growing Cyber Threat Landscape
The cybersecurity landscape for UK businesses has changed dramatically. The National Cyber Security Centre (NCSC) reports a threefold increase in severe cyber incidents compared to last year. This surge places unprecedented pressure on organisations of all sizes to strengthen their defences.
UK firms now face sophisticated threats that evolve faster than traditional security measures can counter. The attacks target not just large corporations but increasingly small and medium enterprises that often lack robust protection.
This article examines the ten most pressing cybersecurity threats UK businesses must prepare for in 2025, based on data from trusted sources, including the NCSC Annual Review 2024 and the Cyber Security Breaches Survey 2025.
1. Phishing Attacks Remain the Primary Threat
Phishing continues to dominate the UK cyber threat landscape in 2025. Attackers now use AI to create highly personalised messages that mimic legitimate communications from trusted sources.
The Cyber Security Breaches Survey 2025 identifies phishing as the cause of attacks in 85% of affected businesses and 86% of charities. Email remains the primary delivery method, with social engineering tactics increasingly used to steal sensitive data.
Who faces the highest risk?
- Financial services
- Healthcare providers
- Public sector organisations
- Professional services firms
These sectors handle valuable data that criminals can monetise quickly.
The impact extends beyond immediate financial losses. Successful phishing attacks often lead to data breaches, ransomware deployment and compliance violations. The average cost of a cyber breach per UK business reached £1,600 in 2025.
Key protection measure: Implement email authentication protocols (DMARC, SPF, DKIM) to prevent email spoofing and deploy multi-factor authentication across all business applications, especially email accounts.
2. Ransomware Attacks Evolve with Multiple Extortion
Ransomware attacks have evolved beyond simple encryption. Criminals now employ double and triple extortion tactics, threatening to publish stolen data and launch DDoS attacks if victims refuse to pay.
The NCSC managed 20 significant ransomware incidents in 2024, with 13 classified as nationally significant. This represents a threefold increase in high-impact incidents compared to the previous year.
Sectors under greatest threat:
- Academia
- Manufacturing
- IT services
- Legal firms
- Charities
- Construction
Healthcare remains particularly vulnerable due to critical service demands and historically lower cybersecurity investment.
The business impact can be devastating. The British Library’s recovery efforts consumed nearly half of its financial reserves. Beyond direct costs, organisations face extended downtime, data recovery challenges and severe reputational damage.
Key protection measure: Implement robust backup solutions with offline copies tested regularly for integrity, and develop comprehensive incident response plans aligned with NCSC ransomware guidance.
3. Supply Chain Vulnerabilities Create Multiple Entry Points
Supply chain attacks target the weakest links in business networks. Attackers exploit vulnerabilities in third-party suppliers to gain access to multiple organisations simultaneously.
A 2025 study found that 58% of large UK financial services firms reported experiencing at least one third-party supply chain attack in 2024. Even more concerning, 23% were targeted three or more times within the year.
Most vulnerable sectors:
- Financial services
- Critical infrastructure
- Defence contractors
- Organisations with complex supplier networks
The business impact includes operational compromise (59%), data loss (58%), intellectual property theft (55%) and significant financial damage (52%). These breaches damage trust across entire supply chains and business ecosystems.
Key protection measure: Implement thorough third-party risk assessment programmes with continuous monitoring. Research shows firms using continuous assessment experienced 36% fewer attacks than those only assessing at onboarding.
4. AI-Driven Vulnerabilities Create New Risks
The integration of AI systems into business operations creates new attack surfaces. AI-powered attacks can automate vulnerability discovery, create convincing phishing campaigns and bypass traditional security controls.
In May 2025, the NCSC warned that UK critical systems face growing risks from a widening digital divide between organisations that can adapt to AI-enabled threats and those that cannot.
Sectors facing the greatest exposure:
- Critical infrastructure providers
- Financial services
- Healthcare organisations
- Companies rapidly adopting AI technologies
The Hiscox Cyber Readiness Report 2024 found that 56% of surveyed businesses believe Generative AI increases their cybersecurity risks, while 34% feel unprepared due to lack of expertise.
Key protection measure: Follow the NCSC’s Guidelines for Secure AI System Development when implementing AI systems and maintain human oversight of AI-driven decisions in security contexts.
5. QR Code “Quishing” Scams on the Rise
QR code phishing or “quishing” involves criminals placing fraudulent QR codes in physical locations. When scanned, these codes direct victims to malicious websites designed to steal credentials or deploy malware.
Most affected sectors:
- Retail businesses
- Hospitality venues
- Transportation services
- Public services using QR codes
One victim reported being fraudulently subscribed to a £39 yearly service when attempting to pay for parking via what appeared to be an official QR code.
Key protection measure: Implement visual security features for official QR codes (branded frames, clear instructions) and educate customers about QR safety practices and warning signs.
6. Deepfake and AI-Generated Fraud Becoming More Convincing
Advanced AI technologies now enable convincing audio and video deepfakes that impersonate executives or trusted figures to facilitate fraud.
In late 2024, a UK resident lost £75,000 to a deepfake advert on Facebook that used AI to manipulate the appearance and voice of financial expert Martin Lewis. The victim reported that the deepfake was convincing enough to override their awareness of previous scam warnings.
Organisations most at risk:
- Financial services
- Investment firms
- High-value transaction businesses
- Media organisations
- Companies with publicly recognisable executives
Meta recently announced plans to introduce facial recognition technology to combat fraudulent use of celebrities in adverts, acknowledging the growing scale of the problem.
Key protection measure: Implement out-of-band verification for high-value transactions and sensitive requests, and establish clear authentication procedures for voice or video communications.
7. 5G and IoT Security Challenges Expand Attack Surface
The rapid deployment of 5G networks coupled with IoT proliferation dramatically expands the attack surface for UK organisations.
By 2030, the UK expects over 100 million IoT devices connected via 5G networks. This massive expansion creates complex security challenges as organisations struggle to maintain visibility over these assets.
Sectors with the highest exposure:
- Manufacturing
- Healthcare
- Smart cities initiatives
- Utilities
- Retail
- Industrial IoT implementations
Compromised IoT devices can lead to operational disruption, data theft, privacy violations and physical safety risks in industrial environments.
Key protection measure: Implement IoT security frameworks such as ETSI EN 303 645 and enforce network segmentation to isolate IoT devices from critical systems.
8. Insider Threats Amplified by Economic Pressures
Whether malicious or accidental, insider threats involve legitimate users compromising security through unauthorised data access or negligent behaviour.
Thirty per cent of Critical National Infrastructure (CNI) organisations experienced an insider threat incident over the past year. More concerning, 35% of CNI security leaders believe that personal financial difficulties are driving employees toward data theft and sabotage.
Most vulnerable sectors:
- Financial services
- Defence
- Critical infrastructure
- Research organisations
- Companies with valuable intellectual property
The impact is often magnified because insiders have legitimate access and knowledge of organisational systems and their vulnerabilities.
Key protection measure: Implement the principle of least privilege for all user accounts and deploy data loss prevention (DLP) tools to monitor sensitive data movement.
9. State-Sponsored Cyber Threats Target UK Organisations
Nation-state actors continue to target UK organisations for espionage, disruption and strategic advantage. These sophisticated threat actors employ advanced persistent threats (APTs) and custom malware.
The NCSC identified China, Russia, Iran and North Korea as primary actors in sophisticated cyber operations targeting the UK. The NCSC informed 542 organisations of cyber incidents affecting them in 2024, more than doubling the 258 reported the previous year.
Sectors under greatest threat:
- Government agencies
- Defence contractors
- Critical national infrastructure
- Research institutions
- Higher education
- High-value technology companies
The NCSC has warned that threat actor “Volt Typhoon” may be laying the groundwork for future disruptive attacks against critical infrastructure.
Key protection measure: Implement advanced threat protection solutions capable of detecting sophisticated attacks and participate in threat intelligence sharing communities for early warnings.
10. Quantum Computing Threats to Current Encryption
As quantum computing advances, it threatens to break current encryption standards that protect sensitive data and communications.
In April 2025, the NCSC warned about growing quantum threats and urged large organisations to prepare by implementing post-quantum cryptography. The agency established a timeline for organisations to identify vulnerable services by 2028 and complete the transition to quantum-resistant encryption by 2035.
Organisations most at risk:
- Financial services
- Government agencies
- Healthcare providers
- Telecommunications companies
- Any organisation handling long-term sensitive data
The “harvest now, decrypt later” attack strategy means sensitive data encrypted today may be vulnerable to future quantum-enabled decryption.
Key protection measure: Follow the NCSC’s post-quantum transition timeline and conduct cryptographic inventories to identify vulnerable implementations in your systems.
Key Themes Across All Threats
Several important themes emerge across these top threats:
AI acceleration changes the game. AI transforms both attack and defence capabilities. Attackers leverage AI to create more convincing phishing emails and automate attacks at scale. Meanwhile, 34% of businesses feel unprepared due to a lack of expertise in managing emerging AI-related risks.
Attack surfaces continue to expand. The shift to hybrid work, cloud migration and IoT proliferation has dramatically expanded the attack surface. This expansion requires new security approaches focused on identity-based controls and zero-trust architectures.
Supply chain complexity increases risk. Organisations are increasingly vulnerable through their technology supply chains. Continuous monitoring of supplier security has become essential, with research showing that firms conducting continuous assessments experienced 36% fewer attacks.
Skills shortage reaches crisis levels. The UK faces a critical cybersecurity skills gap. A recent report found that 95% of security leaders experienced factors that would make them likely to leave their role within 12 months. This shortage particularly impacts SMEs which struggle to compete for talent.
Actionable Steps for UK Businesses
Based on the threats identified, here are the key recommendations for UK businesses:
- Prioritise Cyber Essentials implementation. Research shows organisations implementing Cyber Essentials controls are 92% less likely to make cyber insurance claims. This government-backed scheme provides a cost-effective foundation for cyber resilience.
- Enhance your human firewall. Invest in regular security awareness training addressing emerging threats like AI-generated phishing and QR code scams. Human error remains involved in most successful attacks.
- Implement multi-factor authentication. Deploy MFA across all systems, particularly for remote access, email and financial transactions. This single control can prevent the majority of credential-based attacks.
- Adopt a zero-trust architecture. Move toward a zero-trust security model, assuming no user or system should be automatically trusted. Implement continuous verification and least privilege access.
- Develop and test incident response plans. Create, document and regularly practise cyber incident response procedures. The NCSC’s Exercise in a Box provides free scenarios to test your response capabilities.
- Take advantage of NCSC resources. Use the guidance, tools and services offered by the NCSC, including the Early Warning service, Board Toolkit and Small Business Guide.
Cyber threats continue to evolve at an alarming pace. UK businesses that prioritise security awareness, implement basic controls and develop response plans will be better positioned to withstand the challenging threat landscape of 2025.
Want to discuss how these threats might impact your business? Contact our team for a no-obligation security assessment.