The latest Vodafone Business Cybersecurity Threat Report reveals a stark reality for Ireland’s small and medium-sized enterprises (SMEs), warning that 28% of businesses would be at risk of shutting down after just one ransomware attack, while 94% of Irish SMEs admit they feel unprepared to defend against advanced cyber threats.
With cyber criminals increasingly harnessing artificial intelligence (AI) to launch faster, more convincing and more adaptive attacks, the report warns that no business is immune to risk.
AI: The Game-Changer in Cybercrime
The report highlights how AI is now being used to clone voices, impersonate trusted executives, and create highly realistic phishing campaigns, making it harder than ever for busy SMEs to spot malicious activity. These sophisticated identity hacks can lead to operational shutdowns, exposure of sensitive customer data, and long-term reputational damage to businesses.
The financial impact is expected to surge with cybercrime-related costs projected to rise by nearly 50% over the next three years as AI-driven attacks continue to evolve.
The report highlights the emergence of adaptive AI malware, a type of malicious software that can learn and adapt its tactics to evade detection. Traditional antivirus systems are becoming less effective against these shape-shifting threats, signalling a critical need for stronger, AI-enabled defences.
As Irish SMEs begin integrating AI tools into everyday operations, from automating customer service to analysing data, the research shows that 50% of small and mid-sized enterprises ranked cybersecurity among their top five priorities. However, 69% of SMEs admit they lack the proper cybersecurity measures to deploy these technologies safely. This gap is leaving many businesses exposed to new forms of cyberattacks.
However, Vodafone Ireland, connectivity and technology partner to six in ten Irish businesses, emphasises that there are practical steps SMEs can take to strengthen their cybersecurity, such as employee training, software updates, multi-factor authentication, regular backups, and partnering with expert providers for monitoring and threat detection. These measures can help businesses close gaps without requiring extensive IT expertise.
Speaking on the findings, Sinead Perry, Head of SMB Sales – Small & Medium Business at Vodafone Ireland, warned that no business is too small to be a target:
“The scale of AI-powered attacks means no business is too small or too remote to go unnoticed. If you’re online, you’re on the radar. For SMEs, the risk is real – they are big enough to be a target but often don’t have the same security resources as larger firms.”
“Attackers only need to succeed once, while your defences must work every time. Irish SMEs now face two major challenges: defending against AI-driven threats and ensuring their own use of AI is secure.”
“Today, SMEs manage more data than ever before and operate in a complex digital environment that rivals larger businesses. This makes them attractive targets, and with AI in the mix, this threat is evolving fast. SMEs must act now to strengthen their resilience and protect the future of their business. With 2.4 million customers in Ireland, Vodafone is a trusted connectivity and technology partner, uniquely positioned to support SMEs in navigating today’s cybersecurity challenges. This is why at Vodafone Ireland, we are working with leading global technology partners, like Google, Microsoft and Zscaler, to help SMEs build stronger, smarter defences and protect the future of their businesses.”
The full Vodafone Business Cybersecurity Threat Report is available to download via the V-Hub knowledge centre: https://v-hub.vodafone.ie/knowledge-centre/how-to-defend-smes-from-rising-ai-driven-cyber-attacks.