The Independent has reported an expert’s six practical tips for preventing AI hacks and cyberattacks amid heightened concern about internet security. For UK small and medium-sized enterprises, the important point is not simply that artificial intelligence has made cybercrime more sophisticated. It is that AI has made some established attacks cheaper, faster and much more convincing to run at scale.
A small business may previously have assumed it was too small to interest a criminal group. That assumption is increasingly unsafe. Automated reconnaissance tools can identify exposed systems, scrape staff details from public sources and produce tailored phishing emails with little manual effort. AI does not remove the need for criminals to find a route into a business; it lowers the cost of trying thousands of routes at once.
For an SME, the practical response is a combination of basic cyber hygiene, clear incident planning and insurance that has been reviewed for the way the business actually operates. Cyber insurance is not a substitute for security controls, but it can be the difference between a managed incident and a cashflow crisis.
Why AI changes the risk for UK SMEs
Cyberattacks have long relied on human error, weak passwords, unpatched software and poorly controlled supplier access. AI strengthens the attacker’s ability to exploit each of these weaknesses.
More believable phishing and impersonation
Poor grammar and generic greetings used to be useful warning signs. AI-generated messages can now imitate a professional tone, use relevant industry language and be adapted to a recipient’s role. A finance manager may receive a realistic-looking request to amend bank details; an HR colleague may receive a fake CV containing a malicious link; a director may receive a convincing message appearing to come from a major customer.
Voice cloning also raises the stakes. A fraudster does not necessarily need a long recording to create an imitation of a senior colleague’s voice. That means a telephone instruction to transfer funds, disclose a one-time passcode or urgently buy gift cards should never override a documented verification process.
Faster targeting of exposed systems
AI can assist criminals in sorting through large volumes of publicly available information: staff names, technology suppliers, job adverts, company registrations and social-media posts. Used alongside automated scanning, this can reveal likely weak points, such as a remote access service that needs patching or an employee whose role makes them a useful target for invoice fraud.
The lesson is not to stop using digital tools or to remove every staff profile online. It is to reduce unnecessary information exposure and close obvious technical gaps quickly.
A greater burden on limited teams
Most SMEs do not employ a 24-hour security operations centre. Owners and office managers often hold responsibility for IT alongside finance, operations or client delivery. Attackers know this. They exploit busy periods, annual leave, payroll deadlines and the fact that small teams may lack a second person to challenge a suspicious instruction.
This makes straightforward controls especially valuable. A well-enforced rule that bank-detail changes require an independent call-back can block a loss that sophisticated technology alone may not prevent.
The six-tip message: turn general advice into controls
The reported expert advice is a timely prompt to act, but broad safety tips only matter when converted into routines that your team can follow. The following six measures are practical priorities for UK SMEs facing AI-enabled threats.
1. Use multi-factor authentication everywhere it matters
Enable multi-factor authentication (MFA) for email, cloud storage, accounting systems, remote access, customer relationship management platforms and administrator accounts. Prioritise authenticator apps or hardware security keys over SMS where feasible.
Email deserves immediate attention because a compromised mailbox can let criminals reset passwords elsewhere, monitor supplier conversations and send fraudulent payment requests from a genuine account.
Maintain an inventory of laptops, servers, routers, cloud applications and line-of-business software. Turn on automatic updates where appropriate, but also assign someone to check that critical patches have actually been applied.
Unsupported operating systems and ageing internet-facing devices are a serious concern. If a system cannot be patched, isolate it from the internet, restrict access or replace it. Insurers commonly ask about patching and unsupported software during underwriting, particularly where ransomware cover is sought.
3. Verify payment and data requests out of band
Train staff not to rely on an email thread, Teams message or incoming phone call as proof of identity. For a request involving payment, payroll changes, sensitive data or credentials, verify it using a known telephone number or a pre-agreed contact method.
Create a written payment-authorisation process. It should set approval limits, require a second reviewer for changes to supplier bank details and prohibit bypassing controls because an instruction appears to come from a director. This is essential protection against AI-written business email compromise.
4. Make backups resilient, not merely available
Back up critical business data regularly and test restoring it. Keep at least one backup isolated from the main network or protected by immutable storage, so ransomware cannot encrypt or delete it along with production data.
A backup is only useful if the business knows which systems must be restored first, how long the process takes and whether the restored data is complete. Test a recovery scenario involving email, customer records, accounting data and core operational files.
5. Limit access and remove it promptly
Give staff only the access required for their role. Review administrator privileges, shared accounts, former employee access and supplier log-ins at regular intervals. Disable accounts quickly when someone leaves or changes jobs.
This reduces the harm if a password is stolen. It also limits the chance that a compromised ordinary account becomes a route to payroll, customer data or system-wide encryption.
6. Rehearse an incident response plan
A one-page emergency plan is better than an unread 80-page policy. It should say who can make decisions, who contacts the IT provider, how staff communicate if email is unavailable, how evidence is preserved and when insurers, solicitors, regulators and affected customers may need to be notified.
Run a tabletop exercise at least annually. Ask: what would happen if a director’s email account was compromised at 4pm on a Friday, or if ransomware locked customer files before Monday’s trading? The answers will identify gaps before a real incident does.
What cyber insurance can and cannot do
A suitable cyber policy can provide access to incident-response specialists, forensic investigators, legal advisers, notification support, public-relations assistance and recovery costs, depending on the policy wording. It may also cover business interruption, cyber extortion and certain third-party liabilities.
However, coverage is not automatic and policy terms vary significantly. UK SMEs should examine exclusions, conditions and sub-limits rather than buying solely on premium. In particular, ask whether the policy addresses:
- ransomware and cyber extortion response;
- business interruption caused by a cloud or managed-service provider outage;
- social engineering or funds-transfer fraud, which may sit under a separate crime policy or have a low sub-limit;
- costs arising from a data breach, including legal advice and notification obligations;
- retroactive dates and prior known incidents; and
- the requirement to use insurer-approved breach-response providers.
Be accurate in proposal forms. If an insurer asks whether MFA is enabled for remote access or email, confirm the position with the person responsible for IT rather than making an assumption. Inaccurate answers can create problems when a claim is made.
A 30-day action plan for business owners
Start with a short, accountable programme rather than an open-ended security project.
In week one, identify your most important systems, data and payment processes. Confirm who has administrator access and whether MFA is enabled for email and remote access.
In week two, ask your IT provider for a patching report, an unsupported-software list and evidence that backups are completing. Test a restoration of a non-critical file or system.
In week three, issue a simple staff briefing on AI-enabled phishing, voice impersonation and payment verification. Make reporting easy and blameless: a quickly reported suspicious email is useful intelligence, not a reason to criticise an employee.
In week four, review your cyber insurance with a broker or adviser. Compare the policy to your real dependencies, including Microsoft 365, cloud accounting, outsourced IT and key payment platforms. Update contact details and store the insurer’s claims number somewhere accessible outside the company email system.
AI-driven attacks are not a reason for panic. They are a reason to treat cybersecurity as an operational and financial resilience issue. The businesses most likely to recover well are those that make fraud verification routine, maintain tested backups, restrict access and know exactly whom to call when an incident begins.
FAQ
Does cyber insurance cover AI-generated phishing attacks?
It may, but the answer depends on the loss and the policy wording. A data breach or ransomware incident caused by phishing may be covered, while a payment made after a fraudulent instruction may fall under social-engineering or crime cover, often with a separate limit. Check this specifically before purchasing.
Is multi-factor authentication enough to protect a small business?
No. MFA is one of the most effective controls against account takeover, but it does not prevent every form of fraud, malware infection or supplier compromise. It should sit alongside patching, backups, access control, staff training and payment verification.
What should an SME do first after a suspected cyberattack?
Disconnect affected devices from the network if safe to do so, avoid deleting evidence, contact your IT incident-response provider or insurer’s claims helpline, and follow legal advice before notifying customers or regulators. Do not negotiate with attackers or pay a demand without specialist guidance.
Will an insurer refuse a claim if a staff member clicks a phishing link?
Not necessarily. Human error is a common cause of cyber incidents and is one reason businesses buy cover. However, claims can be affected by policy exclusions, inaccurate proposal information or a failure to meet stated security conditions. Read the policy and document the controls you have in place.
Source: The Independent — Thu, 22 Oct 2026 09:32:00 GMT
