The anticipated cyber threats facing UK businesses in 2026 are evolving faster than security teams can adapt. Attackers are using AI to generate convincing phishing attacks, exploit software supply chains, compromise cloud identities and launch highly disruptive ransomware campaigns.
Recent research highlights the severity of the issue:
- The National Cyber Security Centre (NCSC) warns that ransomware remains the most dangerous threat to UK businesses, noting that attackers now use automation and AI to scale campaigns across thousands of victims.
- The latest UK Government Cyber Security Breaches Survey shows 50% of UK businesses experienced a cyber incident in 2024, rising to 74% for medium businesses and 91% for large organisations.
- Meanwhile, the IBM Cost of a Data Breach Report reports an average UK breach cost of £3.4 million, one of the highest globally.
To effectively safeguard your organisation into 2026, understanding how these cyber threats are evolving will be paramount. The key threats to prepare for are expected to be:
1. AI-powered phishing and social engineering
Cyber criminals now use generative AI to produce highly convincing phishing emails, cloned voices and deepfake videos.
According to the National Cyber Security Centre (NCSC), AI will likely continue to “make elements of cyber intrusion operations more effective and efficient, leading to an increase in frequency and intensity of cyber threats.”Approximately £100 million was lost to investment scams driven deepfake videos in the first half of 2025.
Why it matters:
AI removes spelling errors, improves targeting and creates believable voice calls, making phishing harder to detect.
Actions to take:
- Enable multi-factor authentication (MFA) across all accounts
- Train staff using AI-simulated phishing exercises
- Introduce payment verification with multi-person approval
- Use real-time email threat scanning.
2. Ransomware as a service targeting UK SMEs
Ransomware continues to dominate the UK threat landscape.
- Global ransomware attacks have increased by 56% over the last two years.
- The average downtime after a ransomware incident exceeds 21 days.
Why it matters:
Ransomware groups now target SMEs because they are less likely to have strong incident response capabilities.
Actions to take:
- Maintain offline backups
- Implement zero-trust identity policies
- Create and rehearse a ransomware response pla
- Block admin rights by default
3. Software supply chain compromise
Supply chain attacks are now a priority risk area.
- ENISA reports that supply chain risks comprise 10.6% of threat distribution.
- These attacks impact thousands of organisations simultaneously by compromising trusted software components.
Why it matters:
Compromising one supplier can affect thousands of UK organisations simultaneously.
Actions to take:
- Maintain a third-party risk register
- Request Software Bills of Materials (SBOMs) from critical suppliers
- Apply continuous dependency scanning
- Implement zero trust network segmentation.
4. Cloud misconfiguration and identity-based attacks
Cloud adoption has surged across UK organisations, but configuration drift and weak identity controls are leading causes of breaches.
- Cloud security breaches have been on the rise in recent years, with as much as 75% reportedly caused by inadequate identity, access or privilege management.
- Misconfigured storage services continue to expose millions of records annually.
Why it matters:
Most cloud breaches are preventable with strong identity, configuration and policy controls.
Actions to take:
- Adopt secure cloud landing zones
- Enforce MFA and conditional access
- Use policy-as-code to eliminate misconfigurations
- Continuously scan cloud environments.
5. Nation state threats to UK critical infrastructure
Geopolitical tensions have increased targeting of critical national infrastructure (CNI).
- The NCSC warns that hostile states present a persistent and realistic threat to UK CNI.
- ENISA notes a 30% rise in targeted attacks on European infrastructure providers.
Why it matters:
Healthcare, energy, transportation and public services remain key targets due to their societal impact.
Actions to take:
- Implement zero trust across operational technology
- Segment networks between IT and OT
- Improve visibility with 24/7 threat monitoring
- Apply NCSC Cyber Assessment Framework controls.
6. Deepfake enabled fraud and CEO impersonation
Deepfake technologies are enabling highly sophisticated financial fraud.
- Deloitte reports deepfake incidents have increased as much as 700% in certain industries.
- UK Finance warns that criminals are increasingly impersonating executives to initiate fraudulent transactions.
Why it matters:
Deepfakes undermine trust in human-to-human verification processes.
Actions to take:
- Introduce strict financial verification processes.
- Train staff to spot manipulated audio and video.
- Adopt secure communication channels for executive approvals.
7. Zero-day exploitation of widely used platforms
Zero-day attacks are escalating in frequency and speed.
- Google’s Threat Analysis Group recorded a 50 percent increase in zero-day exploitation in 2024.
- Attackers now exploit vulnerabilities within days or hours of disclosure.
Why it matters:
Complex estates with legacy systems are especially vulnerable.
Actions to take:
- Prioritise patching for high-risk assets.
- Monitor for exploitation evidence.
- Implement virtual patching where possible.
- Use threat intelligence feeds.
8. IoT and OT vulnerabilities in connected environments
Manufacturers, utilities, healthcare providers and logistics operations increasingly rely on connected devices.
- ENISA cites OT systems as being “high value targets across all types of threats”.
- Many IoT devices still rely on outdated firmware or contain default credentials.
Why it matters:
Compromised IoT devices can become pivot points into critical operational systems.
Actions to take:
- Replace unsupported devices.
- Apply network segmentation for OT.
- Block inbound internet access to IoT.
- Deploy device-level monitoring.
9. Insider threats amplified by hybrid working
Hybrid and remote work models increase insider risk:
- The Ponemon Institute states that insider incidents account for over 25% of data breaches.
- Misconfigurations, accidental data sharing and shadow IT remain serious concerns.
Why it matters:
Accidental insider threats are far more common than malicious actors.
Actions to take:
- Enforce least privilege access.
- Use behavioural analytics.
- Implement secure file sharing and DLP.
- Train staff on emerging threats.
10. API exploitation and automated attacks
APIs now underpin modern digital services.
- Akamai observed a 137% increase in API attack traffic.
- Poorly secured APIs expose sensitive data and authentication weaknesses.
Why it matters:
APIs expose data, identity and business logic if not securely managed.
Actions to take:
- Authenticate and authorise every API.
- Implement rate limiting.
- Continuously test API endpoints.
- Apply zero trust principles to API gateways.
What has changed in the last year?
- Phishing is now AI-powered
- Ransomware involves triple extortion and data auctions
- Supply chain attacks now target trust models in AI systems
- Cloud attacks increasingly abuse identity, APIs and automation
- Deepfake fraud has moved from fringe to mainstream
- The threat landscape is faster, smarter and more financially motivated.
An actionable cyber checklist: What UK organisations should do now
These are the most impactful security actions UK organisations can take in the next 30 days to reduce exposure to cyber threats in 2026:
Week 1: Strengthen identity and access
- Enforce MFA for all users
- Audit all admin and privileged accounts
- Enable conditional access across cloud platforms
- Remove shared accounts where possible
- Rotate any high-risk or stale credentials.
Week 2: Reduce cloud and configuration risk
- Run a cloud misconfiguration scan (AWS, Azure, GCP)
- Apply baseline cloud landing zone guardrails
- Review API authentication and rate limiting
- Disable any unused cloud workloads or exposed endpoints
- Validate backup integrity and ensure offline copies exist.
Week 3: Improve ransomware and supply chain resilience
- Conduct a ransomware tabletop exercise
- Review supplier risk for your top 10 critical vendors
- Update incident response playbooks
- Request Software Bills of Materials (SBOMs) where relevant
- Validate segmentation between IT and OT networks.
Week 4: Prepare for AI-enabled and deepfake attacks
- Deliver an AI phishing simulation across the organisation
- Implement voice and video verification checks for senior leadership
- Update payment verification and financial approval processes
- Train staff to recognise deepfake and social engineering signs
- Review your organisation’s readiness against the NCSC Cyber Assessment Framework.
What your board needs to know in 2026
- Cyber threats now represent a material business risk, not just IT risk.
- AI increases threat volume and reduces detection time.
- Cloud identity and configuration security are top failure points.
- Regulatory pressure is rising under ICO expectations and NIS2/DORA impacts.
- Investment in governance, resilience and people is essential.
How CACI can help
CACI helps organisations strengthen controls and capabilities through its Network Security and Enterprise Architecture services. Our cloud engineering and implementation services also ensure these controls are embedded from day one.
FAQs around cyber threats facing UK businesses in 2026
What are the biggest cyber threats to UK businesses in 2026?
The biggest threats include AI powered phishing, ransomware, supply chain compromise, cloud misconfiguration, API exploitation and nation-state activity. These attacks are highly automated and increasingly difficult to detect.
Why are UK SMEs at high risk of cyber attacks?
SMEs often have fewer cyber resources, limited monitoring and weaker controls, making them easier targets for ransomware and phishing. Attackers know SMEs are more likely to pay ransoms or fall for social engineering.
How can UK organisations defend against ransomware?
Defence strategies include MFA everywhere, secure backups, endpoint protection, zero trust principles, patching and rehearsed incident response plans. Aligning cloud governance with best practice significantly reduces risk.
How does AI change cyber threats in 2026?
AI increases attack volume and accuracy. Threat actors use AI to generate phishing content, clone voices, create deepfakes and analyse vulnerabilities faster than before. This reduces detection time and increases breach likelihood.
What does the NCSC recommend for improving cyber resilience?
The NCSC recommends MFA, patching quickly, securing cloud identities, conducting supply chain checks, reviewing backups and following the Cyber Assessment Framework. Businesses should ensure governance, risk and controls are regularly tested.