Cyber Threats Aren’t Slowing Down: What Businesses Need to Know in 2026
If you were hoping cybercriminal activity would begin to taper off in 2026, the latest cyber claims data tells a different story. Ransomware attacks, social engineering fraud, and business email compromise incidents continue to rise, creating significant financial and operational risks for businesses of all sizes.
The message is clear: cyber threats are no longer an occasional concern—they are a permanent business risk that requires proactive protection.
Ransomware Has Become The New Normal
Ransomware activity remained near record levels during the first quarter of 2026. More than 2,400 victims were posted on ransomware leak sites, only slightly below the all-time high reported in the previous quarter. Industry cyber claims data also shows that ransomware claim frequency has increased by approximately 80% since 2022, and roughly 35% of cyber insurance claims involve ransomware.
What makes today’s threat landscape especially concerning is the growing number of cybercriminal organizations. There were 84 active ransomware groups during the first quarter of 2026, the highest level recorded since 2020. New groups continue to emerge while others disappear, creating a constantly evolving threat environment.
For business owners, this means the threat is not limited to large corporations. Small and midsize businesses are increasingly targeted because attackers know many organizations lack dedicated cybersecurity resources.
The Financial Impact Keeps Growing
The cost of recovering from a cyber-attack continues to rise. Cyber claim severity related to ransomware has increased by more than 30% since 2020, driven by growing extortion demands, business interruption costs, and breach response expenses.
Consider these trends:
- More than half of ransomware-related extortion payments exceed $200,000.
- More than 95% of ransomware claims involve breach response costs.
- Business interruption costs have increased by approximately 20% compared to prior years.
- Third-party liability claims following ransomware incidents continue to increase.
Even when systems can be restored, the downtime, lost revenue, and reputational damage can significantly impact business operations.
Social Engineering Remains a Major Threat
Technology isn’t the only target. Today’s cybercriminals often exploit human behavior through social engineering schemes and business email compromise (BEC) attacks.
Industry data indicates that 40% to 50% of cyber claims involve Social Engineering Fraud (SEF) or Business Email Compromise. Claim severity for these incidents has increased by approximately 30% since 2023.
Common tactics include:
- Fraudulent wire transfer requests
- Fake vendor invoices
- Executive impersonation emails
- Credential-stealing phishing campaigns
- Payment diversion schemes
According to FBI reporting cited in industry cyber data, business email compromise losses exceeded $3 billion in 2025 alone. Phishing-related losses also increased dramatically as attackers shifted toward more targeted and convincing scams.
The biggest challenge is that these attacks often bypass technical security controls and rely on employees unknowingly providing access or approving fraudulent transactions.
VPN Vulnerabilities Continue to Be Exploited
Remote access tools remain one of the most common ways cybercriminals gain entry into business networks.
Cyber claims analysis found that 52% of ransomware and intrusion claims involved VPNs or other remote access services as the initial access point. In a recent study, 85% of claims reviewed were attributed to VPN exploitation, making it the leading attack vector by a substantial margin.
This serves as a reminder that businesses should:
- Keep VPN software updated
- Enable multi-factor authentication (MFA)
- Review remote access permissions regularly
- Monitor network activity for suspicious behavior
- Remove unused user accounts promptly
Simple security measures can significantly reduce the likelihood of a successful attack.
What Businesses Can Do Right Now
While cyber threats continue to evolve, businesses can take proactive steps to strengthen their defenses:
- Train Employees Regularly
Cybersecurity awareness training helps employees recognize phishing attempts, social engineering scams, and suspicious emails before they become costly incidents.
- Strengthen Remote Access Security
Implement multi-factor authentication, maintain current software updates, and regularly review user access privileges.
- Develop an Incident Response Plan
A documented response plan helps organizations react quickly and efficiently following a cyber event.
- Back Up Critical Data
Secure and regularly tested backups remain one of the most effective ways to minimize downtime after a ransomware attack.
- Review Your Cyber Insurance Coverage
Cyber insurance can help businesses manage the financial impact of data breaches, ransomware attacks, business interruption, and other cyber-related losses.
Cyber Resilience Starts with Preparation
The cyber threat landscape continues to evolve, and ransomware, phishing, business email compromise, and social engineering scams remain among the greatest risks facing businesses today. Recent claims’ data shows these attacks are becoming both more frequent and more costly, making prevention and preparedness more important than ever.
At Connie Phillips Insurance, we help businesses evaluate cyber exposures and identify cyber insurance solutions that support financial recovery and business continuity after a cyber event.
Whether you’re reviewing your current coverage or exploring cyber insurance for the first time, our team is here to help.
Contact Connie Phillips Insurance today to learn how cyber insurance, ransomware protection, and cyber risk management strategies can help protect your business.