VikingCloud 2026 SMB Threat Landscape Report: Cyber Risk Rises and the Human Cost Grows

For the first time, cybersecurity ranks as the top threat facing small and medium-sized businesses (SMBs) in 2026, overtaking long-standing economic concerns like inflation and recession, according to VikingCloud’s 2026 SMB Threat Landscape Report.

Yet despite recognizing that cybersecurity is a core financial risk, most SMB owners manage cybersecurity alone or with limited internal expertise and support. In fact, 84% say they self-manage cybersecurity, and 28% report the person responsible lacks sufficient training.

The consequences extend beyond technology. Cybersecurity now affects how SMBs grow, invest, and operate. As attacks escalate, incidents disrupt revenue, stall expansion plans, and erode customer trust. And for 40% of SMBs, a financial impact of $100,000 or less from a cyberattack could cause them to close their doors for good.

Cybersecurity is no longer a background IT function. It is a defining business risk—and it carries a growing human cost.

The Human Cost of Cyberattacks

Cybersecurity is a constant, high-stakes responsibility that extends far beyond balance sheets or breach reports. For many SMB owners and cyber leaders, managing it alone creates sustained operational and personal strain.

Two-thirds of SMB owners say they routinely sacrifice personal time—working nights or weekends—to stay on top of security demands. For many cyber leaders, the strain manifests as persistent anxiety and burnout, fueled by the fear that a single oversight could result in a devastating breach. This pressure doesn’t just impact well-being; it impacts business decisions. More than half of SMB leaders report delaying or forgoing growth initiatives because of security concerns. Expansion increasingly feels like added risk rather than opportunity. Without external professional support, both SMB owners and cyber leaders are forced into trade-offs that undermine their well-being and limit their ability to operate—and grow—their businesses effectively. A complex threat landscape adds to their stress.

Why Cyber Risk Is Escalating for SMBs

The attack surface is expanding faster than SMB owners' time, tools, and internal capacity can manage. VikingCloud’s Report identified five exposure points that become more likely to lead to an attack as SMB owners manage stress, anxiety, and their myriad of competing responsibilities:

1. Cybersecurity self-management: While AI-driven threats continue to intensify, the majority of business owners (84%) and more than half of cyber leaders (54%) are still overseeing cybersecurity internally. That responsibility is taking a personal toll: 56% of cyber leaders report rising anxiety and 53% are experiencing burnout. At the same time, 57% of owners admit that security demands have slowed decision-making or caused them to postpone growth initiatives.
2. Widespread cyber incidents and attack attempts: SMBs are facing consistent operational disruption. In the past year alone, 73% encountered Wi-Fi or network outages, 58% experienced website downtime, 55% dealt with third-party or vendor interruptions, and 51% saw point-of-sale system failures. Threat activity is also escalating, with 46% reporting AI-generated phishing attempts, 29% deepfake-related fraud, 27% customer data breaches, and 26% ransomware incidents.
3. Baseline controls are common, but coverage gaps remain: Many SMBs have implemented foundational protections, including real-time monitoring or intrusion detection/prevention systems (67%), antivirus or antimalware solutions (63%), and firewalls (58%). However, 34% say their security tools are outdated, and adoption of more proactive measures—such as vulnerability scanning (34%), penetration testing (32%), and employee security awareness training (32%)—lags behind.
4. Competing budget priorities hinder defense: Over the past 12 months, SMBs directed more funding toward hiring, compensation increases, and bonuses (42%), non-essential software subscriptions (42%), and employee development outside of security (41%) than toward new cybersecurity investments, leaving defenses potentially underfunded.
5. The attack surface is rapidly evolving for payment security: As payment ecosystems modernize, 40% of respondents say removing the 16-digit primary account number (PAN) from payment cards will have a significant or transformative impact on how their businesses secure transactions.

SMB owners didn’t start their businesses to become cybersecurity experts, but cyber risk is now business risk. With AI accelerating both the speed and sophistication of attacks, do-it-yourself security is no longer enough. Pairing AI-driven tools with experienced security partners helps teams focus on real threats, act faster, and stay focused on growing their businesses.

SMBs No Longer Have to Manage Cybersecurity Alone

Cyber risk has outpaced what even the most dedicated SMB owners and cyber leaders can realistically manage on their own. As attack surfaces expand and threats grow faster and more adaptive, cybersecurity cannot be managed solo.

SMBs should focus their limited time and budget on what matters most. Not every alert represents the same level of danger. This is where a risk-directed security approach comes in – focusing efforts on the risks most likely to disrupt the business. Continuous, asset-level risk scoring enables organizations to prioritize the exposures most likely to disrupt operations, ensuring limited time and budgets are spent on what matters most rather than reacting to noise.

Shared accountability—supported by external expertise and 24/7 coverage from managed security service providers (MSSPs) offers a sustainable path forward. By distributing responsibility and bringing in continuous monitoring and response, MSSPs reduce burnout while improving consistency, resilience, and security outcomes.

The result is stronger security, with the breathing room SMB leaders need to focus on growth, customers, and the parts of the business that brought them there in the first place.

Download the full report for data-driven insights and practical guidance SMBs can use to reduce cyber risk and security burden.