The Cyber Resilience Playbook from Dr. Chase Cunningham (“Dr. Zero Trust”), a new consolidation of 26 breach studies, reveals a stark reality: emerging and mid-sized companies are now squarely in the crosshairs of cybercriminals.
The findings underscore that no business is “too small” to be targeted. From ransomware to supply chain compromise, the data shows that attackers are scaling their operations with automation and artificial intelligence (AI), while smaller firms lag behind in defenses.
Below are the five most critical threats every growing business must understand in 2026.
5 critical cyber threats for emerging and mid-sized companies in 2026
1) Ransomware is rampant
What’s happening: Ransomware remains the defining threat for emerging and mid-sized companies. In the 2025 DBIR, ransomware was present in 88% of breaches affecting emerging and mid‑sized companies (versus 39% for large enterprises), underscoring disproportionate downtime risk for lean teams. Attackers calibrate ransom demands to victim size and often target backups first to maximize pressure.
Why it matters: Growing businesses typically lack redundant infrastructure or mature disaster recovery, so encryption events halt operations entirely. However, resilience is improving: more victims are refusing to pay as backup strategies strengthen, and incident response plans are rehearsed. The Playbook documents how reliable, accessible, and immutable/offline backups transform ransomware from existential to manageable.
Action to take:
- Enforce the 3‑2‑1 rule (3 copies of data, on 2 different media, with 1 offsite).
- Add immutable cloud copies.
- Protect backup credentials in a vault.
- Test restores quarterly to validate Recovery Point Objective (RPO)/Recovery Time Objective (RTO).
- Pair backups with a concise ransomware response playbook (triage, restore order, communication templates).
2) Credential theft & “malware‑free” intrusions
What’s happening: Attackers increasingly bypass traditional malware by abusing valid credentials. CrowdStrike observed 79% of intrusions in 2024 were “malware‑free,” relying on living‑off‑the‑land techniques and legitimate admin tools. In web applications, 88% of breaches involved stolen credentials (DBIR), and cloud compromises frequently hinge on account abuse rather than exploits.
Why it matters: With valid credentials, adversaries blend into normal traffic, sidestep signature‑based defenses, and move laterally fast. The Playbook frames identity as priority #1 – if authentication and access controls are weak, everything downstream is at risk.
Action to take:
- Turn on MFA everywhere (email, VPN, admin panels, finance).
- Prefer phishing‑resistant MFA (FIDO2/WebAuthn) for high‑risk users.
- Mandate an enterprise-grade password manager to eliminate reuse, centralize vaulting, and monitor for exposed credentials.
- Enforce least privilege, remove shared accounts, and run quarterly access reviews
3) Social engineering: phishing, vishing, and pretexting
What’s happening: The human element remains a favored entry point. The DBIR links social engineering to 60% of breaches when errors/misuse are included; vishing (voice phishing) rose 442% in late 2024 as adversaries used convincing deepfake voices and phone‑based impersonation to harvest MFA codes or push urgent financial changes (CrowdStrike).
Why it matters: Even well‑configured tech can be undermined if users are rushed or deceived. Smaller firms are especially exposed to Business Email Compromise (BEC), where attackers hijack email threads and swap invoices or bank instructions. Trust makes the scam believable; process makes it stoppable.
Action to take:
- Run regular training and phishing simulations; normalize reporting suspicious messages.
- Require out‑of‑band verification for any payment change or sensitive request (phone a known number; two‑person approval).
- Implement email authentication methods (SPF, DKIM, DMARC) to prevent brand spoofing and reduce downstream fraud.
- Monitor mailboxes for unusual logins and hidden forwarding rules; mandate MFA on email.
4) Vulnerability exploits & shadow apps
What’s happening: Exploitation of known vulnerabilities rose year‑over‑year, with attackers scanning internet‑facing assets for unpatched flaws – VPN gateways, edge devices, and web servers – often within hours of disclosure. The volume of Common Vulnerabilities and Exposures (CVE) is daunting, but adversaries focus on a small, high‑impact subset that is easy to exploit and externally visible. Shadow or abandoned applications with lingering access also expand attack surface.
Why it matters: For growing businesses, patch paralysis is costly. Edge‑device bugs and outdated content management systems (CMS)/plugins are frequent initial footholds. The Playbook emphasizes patch velocity – how quickly critical/high severity items are fixed over perfect coverage; speed on the perimeter delivers outsized risk reduction.
Action to take:
- Patch internet‑facing systems first; subscribe to vendor advisories for perimeter devices.
- Set service level agreements (SLAs): Critical ≤7 days; High ≤30 days; scan monthly and track remediation.
- Use Web Application Firewalls (WAF)/virtual patching when downtime blocks immediate fixes.
- Inventory and retire shadow apps; remove unused credentials and stale integrations.
5) Third‑party & supply‑chain breaches
What’s happening: One of the most dramatic DBIR trends: breaches involving business partners doubled year‑over‑year, and roughly 30% of incidents involved a third party (supplier, MSP, SaaS platform). As smaller businesses extend operations through external providers, their trust boundary expands – and attackers exploit weaker links to pivot.
Why it matters: Even if your internal controls are strong, a partner’s lapse can expose your data or disrupt your operations. Conversely, an incident in your environment can cascade to a larger customer. Vendor diligence and contractual rigor are not “enterprise‑only” – they’re essential for smaller teams navigating outsourced IT.
Action to take:
- Perform vendor risk reviews (security questionnaires, certifications like SOC 2/ISO 27001).
- Insert breach notification and security/control requirements into contracts; require cyber insurance and minimum MFA standards for privileged access.
- Limit and monitor third‑party access; promptly disable ex‑vendor accounts.
Why resilience (not perfection) is the 2026 mandate
No organization is breach‑proof, but resilient organizations recover quickly, minimize downtime, and avoid ransom payments because backups are robust, incident playbooks are practiced, and identity is locked down. The Playbook’s dual emphasis – prevention + recover – maps to what the data shows actually changes outcomes for smaller teams.
Here are five immediate steps every growing business should take:
- Implement phishing-resistant MFA across all critical systems.
- Establish structured patch management for internet-facing assets.
- Invest in backups and disaster recovery to reduce ransom leverage.
- Conduct regular security awareness training to counter AI-driven social engineering.
- Assess vendor risk rigorously with security questionnaires and contractual requirements.
The breach trends make one thing clear: “business as usual” is not sustainable. Emerging and mid-sized companies must shed the illusion of “security by obscurity.” Attackers are not overlooking smaller firms; they are targeting them precisely because defenses are weaker.
The good news: resilience is within reach. By adopting Zero Trust principles and strengthening cyber hygiene, growing businesses can move from survival mode to a sustainable security posture.
Trust nothing. Validate everything. Build strategies that actually work.
Download the Playbook here.
