Cybersecurity in San Diego: 7 Biggest Threats SMBs Face in 2025 – 2026 (And Steps to Protect Your Company)

If 2025 is the rise of artificial intelligence (AI) in cyberattacks – 2026 will be the reckoning. According to the 2025 Verizon DBIR, over 60% of small businesses reported at least one incident – a number projected to rise as attackers automate their methods. Currently, AI is playing the supporting role – helping automate phishing emails, generate convincing deepfakes (that are still somewhat in some way recognizable), and speed up data analysis. Next year, it will take the lead by recognizing points of weakness and opportunity and using autonomous decision-making to launch adaptive, real-time attacks that learn from defenses and adjust immediately. What was once human-steered with AI riding sidecar is quickly becoming AI-driven with humans in the passenger seat. This marks a turning point in the world of cybersecurity. So, how do you protect your small to medium business? Let’s explore 7 threats and steps to ensure your company is protected:

7 Threats in 2025 – 2026 (And Steps to Protect Your Company)

1. AI-Powered Scams and Deepfake Attacks

As of 2025, many sectors including entertainment, corporate and even government have become increasingly aware or directly under attack by scammers using deepfakes. In one example, as detailed in our previous blog on deepfakes, the fraudsters developed a sophisticated deepfake of Italy’s Defense Minister, Guido Crosetto, targeting prominent Italian business leaders. Known as the “Minister Scam” – the scammers replicated the voice of Crosetto using AI to contact business owners including Giorgio Armani. Although, Armani’s team was able to spot the deepfake, one business leader believed the voice call resulting in a loss of €1 million. In another example, the WPP Voice Clone Attack, also covered in our previous blog on deepfakes, fraudsters were able to access Microsoft Teams and not only replicate the voice of the company’s CEO but include video snippets of him speaking. Fortunately, in this situation the manager was able to detect the deepfake. However, as the speed and quality of video scams is expected to greatly increase in the coming year – it is imperative that businesses safeguard themselves. Here are three steps a business owner can take to safeguard their business from these scams:     

3 Steps to Safeguard Your Business from AI-Powered Scams and Deepfakes:

1. Verify Unusual Financial or Data Requests (through a second channel)
2. Train Staff to recognize red flags (urgency, secrecy, payment requests)
3. Enable Multi-Factor Authentication (MFA) on all systems – especially financial systems.

Overall, the power of AI-assisted scams and deepfakes has already exemplified itself in many cases including the “Minister Scam” and the WPP Voice Clone Attack. As we look forward into 2026, it is expected these scams will not just be AI-assisted but AI-generated becoming even more powerful as the deepfakes evolve into indistinguishable clones of individual’s writing, video of them and their voices. Ensuring your company is protected now is the best way to prevent situations like these from happening to your business. 

2. Ransomware 2.0 – Faster, Cheaper, and Automated

Although defending against deepfake scams is absolutely critical, it’s important to remember that they are just one of many forms of a cyberattack. Another version of a cyberattack is known as ransomware. The Federal Bureau of Investigations (FBI) defines ransomware as any type of malicious software – or malware – that prevents you from accessing your computer files, systems, or networks and demands you pay a ransom.  It made its first appearance in 1989 with an incident known as the AIDS Trojan – also referred to as the PC Cyborg Virus. During a World Health Organization conference, attendees were given floppy disks that appeared to contain legitimate research materials. In reality, the disks carried hidden malware that encrypted the users’ files once installed. Victims received a ransom stating that if they wanted to regain access to their data, they had to mail $189 to a P.O. box in Panama.

Since its early beginnings, ransomware has become far more sophisticated – fueling billion-dollar cyberattacks and targeting businesses of all sizes. Today the evolution has given rise to an entire industry and underground economy including Ransom-as-a-Service (RaaS) – a business model in which ransomware developers sell ransomware code or malware to other hackers.

This combined with the implementation of AI-driven tools – capable of identifying and exploiting network vulnerabilities is a clear sign that there is no time waste for businesses. So, what can a business leader do right now to ensure their business is protected? Let’s take a look at 3 ways to prepare for and prevent ransomware below:

3 Best Ways to Prepare for and Prevent Ransomware:

1. Always Keep Offline Backups – use external hard drives, network attached and tape storage
2. Limit Admin. Access – review and restrict admin. privileges
3. Automate Patching and Endpoint Monitoring – ensure vulnerabilities are addressed

In summary, ransomware has evolved significantly since its debut in the 1980s. While its core concept remains the same, modern technologies and the rise of AI have made attacks more sophisticated, available, and fast-moving. The best defense is preparation – implementing proactive security strategies now, not later.

3. Cloud Leaks and Misconfigurations

The concept of the cloud began in the 1960’s with mainframe computing. Organizations used time-sharing systems, allowing multiple users to access a single mainframe through terminals. In 2006, Amazon would set a milestone for the cloud by launching Amazon Web Services (AWS), which introduced EC2 and S3 (storage) allowing companies to rent infrastructure on demand. Just a few years later, Google, Microsoft, IBM and others would enter the market with their own storage options.

As virtualization and the internet have continued to grow since then so has the need for overall data storage. Moreover, the transition from the traditional office work environment to include hybrid and remote has only added to the demand for cloud services. Whether or not you are currently considering adding cloud solutions or will need to expand date storage in the future, awareness of potential vulnerabilities for your company is key. Let’s explore three common ways cloud leaks and cloud misconfigurations occur below:

3 Most Common Ways Cloud Leaks and Misconfigurations Occur:

1. Misconfigured Storage Buckets: One of the most common ways data leaks occur in the cloud is through storage services such as Amazon S3 buckets or Google Cloud Storage that are set to “public” instead of “private.” This means anyone on the internet could potentially access that data if they know where to look. It’s often just a simple misconfiguration, but it can lead to major data exposure.
2. Default or Weak Permissions: Another issue is when cloud resources are left with default permissions that are too broad. For instance, if a database in the cloud is not restricted to specific IP addresses or authenticated users, then anyone who stumbles upon it might be able to read or even write data.
3. Overly Permissive Access Controls: Sometimes teams grant broad access to entire groups of users or even the public out of convenience, and they forget to lock things down later. This can lead to sensitive data being visible to people who shouldn’t have access.

Now that we have fostered an understanding of the most common ways these leaks and misconfigurations occur. Let’ take a look at three best ways to prevent them.

3 Best Ways to Prevent Cloud Leaks and Cloud Misconfigurations:  

1. Schedule Regular Cloud Configuration Audits: Conducting audits at least once per quarter helps identify vulnerabilities and misconfigurations before they become costly issues.
2. Implement Least-Privilege Access & MFA: Limiting access to only what users need and adding an extra layer of authentication significantly reduces the risk of unauthorized access.
3. Partner with a Trusted Managed IT Provider: A dedicated IT partner can provide around-the-clock monitoring, ensure compliance, and respond swiftly to potential threats.

Since its early beginnings in the 1960s, cloud computing has evolved into a high-demand service. Today, leading tech giants such as Amazon, Google, IBM, and Microsoft offer a wide range of cloud solutions to meet modern business needs. As AI-driven technologies and data demands grow, securing your cloud environment is no longer optional – it’s essential.

At CompuOne, we specialize in secure, scalable cloud solutions and we’re here to help. We offer complimentary cloud assessments to evaluate your current setup and identify areas for improvement. 👉 Click here to schedule your appointment.

4. Supply Chain and Vendor Vulnerabilities

As everyday business takes centerstage and the need for these precautions grow – hiring or utilizing third party vendors may be an excellent resource. However, these can come with their own vulnerabilities as well. Third-party vendors such as cloud platforms, SaaS tools, managed IT services providers or software libraries carry attractive entry points for attackers. Reason being they are so appealing is because one entry point could grant access to multiple clients’ data – not just one organization’s.

A classic example of a third-party breech took place this past August where F5 Networks discovered a highly-sophisticated threat had gained long-term access to certain systems.  F5 is a vendor whose products (BIG-IP, etc.) are embedded in many networks. A breach at F5 affects all of its customers. As a result, U.S. federal agency Cybersecurity and Infrastructure Security Agency (CISA) issued an emergency directive for agencies and large organizations using F5 products to catalog and patch their devices.

In an infamous example from this year, the Tea App Data Breach, exposed 72,000 images including 13,000 selfies and photos of user’s IDs as well as 59,000 images from posts or private messages. Shortly after, a second database was discovered and exposed an estimated 1.1 million private messages between users (covering sensitive personal topics such as abortion, cheating, and phone numbers). Not only did the app put thousands of women’s lives in emotional and physical danger (because many images contained their home address), they are now suited to face financial losses with in the millions from lawsuits as well as a deeply damaged business reputation.

From these examples alone it is clear that the wrong supply chain and vendor can open the door to disaster for one’s company. So, how do you protect your business from supply chain and vender vulnerabilities? Let’s explore them below:

3 Ways to prevent Supply Chain and Vendor Vulnerabilities:

1. Vet Vendors for Security Certifications: Before signing on with any vendor, verify that they meet high security standards—such as SOC 2, ISO 27001, or NIST compliance. These certifications demonstrate that the vendor follows rigorous data protection and risk management protocols.
2. Require Incident Response Communication in Contracts: Make sure your contracts clearly outline how and when vendors must report security incidents. This should include a maximum time window for disclosure, point-of-contact details, and expectations for collaboration during remediation.
3. Partner with a Trusted Managed IT Services Provider: A dedicated IT partner can provide continuous monitoring, real-time alerts, and compliance tracking across your third-party ecosystem. Managed services can also help vet vendor performance and identify risks early.

As small and medium businesses rely more on third-party software and IT service providers, this will remain a top 2026 risk. Data breech examples from this year alone such as the F5 Networks and the Tea App Data Breach have showcased just want can happen if a third-party vendor is not properly vetted. In order to ensure you are selecting the safest supply chain and vendors, make sure you confirm their security certifications, require incident response communication in contracts and partner with a trusted managed IT services firm in San Diego or Chicago. 

At CompuOne, we have been providing IT services in San Diego for over 28 years and we’re here to help. We offer complimentary assessments.👉 Click here to schedule your appointment

5. Human Error and Social Engineering

Despite all of these technologies, human error is still the number one threat. According to the Infosec Institute, human error is responsible for 74% of data breaches. But what causes this? There are many reasons including social engineering, complexity of modern IT environments, overconfidence and inadequate training. Although, complexity and lack of training are self-explanatory, you may be asking what exactly is social engineering? Social engineering is the art of manipulating people into revealing confidential information or performing actions that compromise security. Rather than breaking through firewalls or encryption, attackers exploit human psychology using trust, authority, fear, or urgency to trick victims into giving up access voluntarily. As one put it – “hacking humans instead of systems.” There are six main ways this is done (refer to infographic below).

In one example of social engineering using pretext, the MGM Resorts Hack of 2023 gained wide-spread attention as attackers called the IT help desk, posing as an employee needing a password reset. Within 10 minutes, they gained credentials and crippled the casino chain’s systems – shutting down slot machines, reservations, and digital keys.

Although social engineering plays a major role – sometimes it is due to simple human error. One example of this includes the Gitlab Backup Deletion Incident (2017) in which an engineer accidentally deleted a production database while trying to fix a replication issue. The deleted database included user project data, issues, merge requests, and more – impacting thousands of users. What made it worse was that several backup systems had failed. It revealed that in addition to the human error backup processes were either untested, misconfigured, or not monitored. Gitlab later would earn praise as they published a full detailed incident report, Postmortem of Database Outage of January 31st, which other companies learned from.

Without proper employee training, protocols and social engineering awareness, a disaster for your company could be seconds away. Let’s take a look below at how you can prevent employee error and raise awareness on social engineering:

3 Ways to Prevent Human Error and Social Engineering:

1. Regular Awareness Training (short, quarterly refreshers): Hold short quarterly refreshers focused on real threats like phishing or password safety. Frequent, bite-sized sessions keep cybersecurity awareness sharp and habits consistent.
2. Enforce Password Managers and Access Control: Require employees to use a password manager to create and store strong, unique passwords. Combine this with role-based access control so users only have the permissions they need – limiting exposure if an account is compromised.
3. Reward Employees Report Phishing Attempts: Encourage staff to report suspicious emails or links by recognizing and rewarding proactive behavior. Positive reinforcement builds a culture where employees act as active defenders, not accidental risks.

In summary, human error is the number one cybersecurity threat for companies. Whether it is due to social engineering, complexity of modern IT environments, overconfidence or  inadequate training, it is clear that the importance of proper employee training, protocols and social engineering awareness can not be overlooked. Many managed IT services firms offer employee training including CompuOne. If you are interested in learning how you can set your team up for continues success – click here to schedule a complimentary consultation.

6. Data Privacy Regulations and Legal Exposure

As technology evolves, so do data privacy laws and compliance standards. IT service providers in San Diego must operate under California’s Privacy Rights Act (CPRA), while IT services in Chicago are comply with the Biometric Information Privacy Act (BIPA) – both of which are tightening requirements for how data is collected, stored, and shared.

For small and mid-sized businesses, noncompliance can lead to severe fines and reputational damage. By 2026, emerging federal privacy standards are expected to align more closely with the EU’s General Data Protection Regulation (GDPR), raising the bar nationwide.

So, with privacy laws constantly evolving, how can your organization stay up to code? Let’s take a look at three ways below:

3 Ways to Ensure Your Company Stays Compliant

1. Conduct Regular Data Audits: Review what data you collect, how it’s stored, and who has access to it. A quarterly or Annual Data Audit helps identify gaps, outdated practices, or unnecessary data retention that could put your business at risk.
2. Maintain Clear Privacy Policies: Ensure your privacy policy matches your actual practices – and update it whenever business processes or data-sharing methods change. Transparency builds trust with users and demonstrates good-faith compliance if an incident occurs.
3. Implement Ongoing Compliance Training: Train employees on data handling, consent, and security procedures. Privacy compliance isn’t just an IT issue – it’s an organization-wide responsibility. Short, recurring sessions keep staff aware of new laws and how to apply them in daily operations.

In summary, federal and state laws are regularly changing. It’s important for business leaders to stay in-the-know and on-top of legal standards. Consider partnering with a managed IT services firm in San Diego or an IT services firm in Chicago. CompuOne specializes in compliance in many industries including finance, law, healthcare, architecture and more.

👉 Click here to schedule your appointment

7. The Road Ahead: Building a Cyber-Resilient Business

Cybersecurity is no longer an à la carte add-on to your IT budget – it’s a business essential and a competitive differentiator.

When you combine the right technology (MFA, data backups, and continuous monitoring) with a strong security culture (training, accountability, and clear policies), you create not just a defense strategy, but a business advantage. Let’s explore three ways business leaders can take action today:

3 Action Steps You Can Take Today

1. Enable Multi-Factor Authentication (MFA): Secure all accounts with MFA to reduce the risk of unauthorized access – one of the most effective ways to stop breaches before they start.
2. Run a Data Backup and Recovery Test: Don’t just back up your data – test your recovery process to ensure critical systems can be restored quickly after a cyber incident.
3. Launch a Quick Employee Security Refresher: Send out a short training or phishing simulation this week. A few minutes of awareness training can prevent the next costly mistake.

Cybersecurity is no longer optional – it’s a core part of business resilience. By combining strong technology such as MFA and backups with a culture of awareness and accountability, companies turn protection into a competitive edge. Regular IT audits and proactive action keep your systems secure, compliant, and ready for what’s next.

To stay ahead of evolving threats, it is important to proactively identify risks and keep the company compliant and protected. Consider scheduling a yearly IT audit or partner with a managed IT services provider in San Diego or Chicago.

Conclusion

As AI continues to evolve at a rapid pace – shifting from an assistant role to a leading force – it’s clear we’ve entered a new era of cybersecurity. Long-standing threats now have superpowers. From emerging dangers such as AI-driven scams, deepfakes, cloud leaks, and supply chain vulnerabilities to the traditional risks of ransomware, human error, and social engineering, each has grown in sophistication and scale.

To stay secure, businesses must strengthen both their defenses and their awareness. Start by enabling multi-factor authentication (MFA), maintaining reliable data backups, conducting regular employee training, and partnering with a trusted managed IT services provider in San Diego or an IT services firm in Chicago.

Schedule a Cybersecurity Readiness Review with our team today and step into 2026 confident that your business is protected and prepared for the challenges ahead.