Last year, the global cost of cybercrime reached $9.22 trillion, and experts estimate that it will continue growing to $13.82 trillion by 2028. As such, the question isn’t if threats will escalate—it’s how to outpace them, and being aware of emerging trends is the first step toward effective protection. This article explores 2025 cybersecurity trends—from weaponized artificial intelligence (AI) to new regulations—and provides actionable insights to help organizations stay secure.
1. AI-Powered Attacks
The last few years will be remembered as the time when AI moved from the background to the forefront of our technology-enabled lives. While AI was once quietly processing images, optimizing search results, and working behind the scenes, today we interact with it directly—asking it questions, using it to generate content, and integrating it into our daily workflows. This transformation has created unprecedented opportunities, but it has also made AI-generated malware a reality.
For example, researchers have used AI tools like ChatGPT to write functional malware capable of stealing data and encrypting files. Attackers can now generate endless malware variants with a few clicks, making traditional signature-based antivirus far less effective. Malicious AI “bots” can also automate tasks like finding vulnerabilities or crafting phishing emails at scale, which means cyberattacks can happen faster and in larger volumes than ever before.
Another AI-driven threat is the rise of deepfake technology for social engineering. Deepfakes use AI to create hyper-realistic fake audio or video. In one case, criminals cloned the voice of a CEO and tricked an employee into a $243,000 transfer. More recently, a deepfake video call fooled a Hong Kong bank employee into transferring $25 million to fraudsters by mimicking her actual CFO and colleagues.
It’s no surprise that deepfake-related fraud is surging, and we can expect far more of these AI-enabled scams targeting organizations of all sizes.
What organizations can do:
- Use AI to fight AI: Advanced endpoint protection solutions like Microsoft Defender for Endpoint implement AI and behavioral analysis to spot novel malware and suspicious activities that legacy antivirus might miss.
- Train employees: Regular training sessions on recognizing deepfake scams and spear-phishing attempts can transform from being the most vulnerable entry point to becoming a critical first line of defense.
- Adopt a layered defense: No single security solution is 100% reliable against sophisticated AI attacks, so it’s best to combine multiple protective measures. That way, even if one measure fails, the remaining measures can still stop the threat.
2. Rapid Tech Adoption
SMBs are rapidly adopting cloud services, IoT devices, and AI tools to drive efficiency, but these same technologies introduce new vulnerabilities if not managed securely.
Moving data and applications to the cloud means your valuable assets are accessible from anywhere, which is convenient for workers and attackers. It then takes a single misconfiguration for a cybersecurity incident to happen. In fact, nearly 23% of cloud security incidents stem from cloud misconfigurations.
The explosion of the Internet of Things (IoT) is another challenge. From smart security cameras to connected HVAC systems, it’s estimated that there are around 30 billion active IoT devices worldwide vastly expanding the digital attack surface, many of which have weak security (default passwords, rare updates). We’ve seen attackers recruit IoT devices into botnets or use them as entry points into corporate networks.
The growing reliance on AI tools also introduces significant risks. Employees increasingly use generative AI platforms like ChatGPT for various business tasks, often sharing sensitive company information in the process. This data gets stored on third-party servers, creating potential exposure points. The security implications became evident in March 2023 when OpenAI CEO Sam Altman admitted that a bug allowed some ChatGPT users to see the titles of conversations had by others.
What organizations can do:
- Embrace Zero Trust principles: Don’t assume anything on your network can be trusted. Implement strict identity and access management by requiring MFA for all users and using tools like Microsoft Entra ID to enforce least privilege access and device compliance checks.
- Secure your cloud services: Regularly audit cloud settings and take advantage of cloud security services (Microsoft Defender for Cloud, for instance) to get alerts on vulnerabilities or anomalous access in your cloud environments.
- Manage and monitor IoT devices: Change default passwords on any IoT equipment. Keep firmware updated to patch known vulnerabilities. Place IoT devices on a separate network or VLAN away from core business systems and actively monitor their activity.
- Protect data in AI workflows: If employees use AI tools, establish guidelines to prevent uploading confidential data to public AI services. If the use of AI tools isn’t possible for compliance reasons, then explicitly prohibit their use through both policy and technical controls.
3. Supply Chain Risks
According to Verizon’s data, 15% of all breaches in 2023 involved a third-party component, a sharp rise from 9% the previous year. This 68% year-over-year jump in supply chain incidents underscores how attackers are exploiting trust between organizations. In 2025, expect cybercriminals to intensify attacks on supply chains—targeting software providers, IT contractors, or other third parties as a backdoor into your business.
SMBs are increasingly finding themselves in cybercriminals’ crosshairs not just as direct targets but as stepping stones to gain access to larger, more lucrative organizations. Attackers specifically target smaller businesses with connections to major corporations or government agencies, exploiting the trust relationships between them.
Once they’ve infiltrated an SMB’s systems, they can use that access to launch sophisticated phishing campaigns that appear legitimate to the larger target. This “island hopping” technique has proven highly effective, which is why larger companies and government agencies are now demanding stricter security from their suppliers through formal vendor assessment programs and security requirements in contracts.
What organizations can do:
- Vet and monitor vendors: Before contracting with a third party, ask about their cybersecurity practices and relevant certifications (such as SOC 2, ISO 27001, or compliance with frameworks like NIST). It’s wise to include security requirements in vendor contracts, including clauses for data handling, breach notification, and audit rights.
- Segment and secure integrations: Technically segregate systems so that a compromise in one partner’s software doesn’t immediately grant access to your whole environment. For example, keep your financial database on a separate network segment if an external payroll app needs to connect to it. Monitor network traffic for unusual flows.
- Prepare for supply chain incidents: Develop an incident response plan that accounts for third-party scenarios. It’s also important to stay informed through threat intelligence feeds (e.g., CISA alerts) so you can patch or respond swiftly.
4. New Cybersecurity Regulations
The regulatory landscape around cybersecurity and data privacy is becoming more demanding, and SMBs must pay close attention or risk hefty penalties. Governments and industry bodies are pushing out new cybersecurity regulations, standards, and enforcement that will affect businesses of all sizes.
By 2025, many U.S. states (like California, Virginia, and others) will have active privacy laws dictating how customer data is protected. Specific industries are also getting their own tailored regulations, such as the Cybersecurity Maturity Model Certification (CMMC) for contractors working with the Department of Defense. Internationally, regulations like the EU’s GDPR and the new NIS2 directive for network security are raising the bar for compliance.
Ignorance is no excuse, and non-compliance can lead to severe, financially-devastating fines. Beyond avoiding fines, demonstrating good cybersecurity compliance is increasingly a competitive advantage. On the flip side, a data mishap due to negligence could not only bring legal trouble but also erode customer confidence.
What organizations can do:
- Stay informed on laws and standards: Identify which regulations apply to your organization and keep an eye on updates—for instance, if you’re a government contractor, follow CMMC 2.0 developments.
- Implement baseline security policies: Adopting widely respected frameworks can cover many compliance bases. The NIST Cybersecurity Framework or CIS Controls are great starting points to ensure you have fundamentals like access control, incident response, and encryption addressed.
- Use compliance tools: There are many tools that can significantly simplify your compliance efforts. For example, Microsoft 365’s compliance center (Microsoft Purview) can help you assess and track compliance with various standards, manage data retention policies, and even detect sensitive data usage.
5. The Cyber Skills Gap
One of the toughest challenges for organizations is simply having enough qualified people to handle cybersecurity. There is a well-documented cybersecurity talent shortage—an estimated 4 million additional cybersecurity professionals are needed globally to meet demand.
This skills gap hits smaller organizations especially hard as big corporations can pay top dollar for, but SMBs often can’t afford a full in-house security team. The result is that important security tasks might get delayed or overlooked because overburdened IT generalists are seldom able to keep up with the latest threats or patches.
The problem is compounded by the rapid evolution of threats described earlier in this article. AI-powered attacks, complex supply chain vulnerabilities, and the expanding attack surface created by new technologies all require specialized knowledge to address effectively. Without dedicated security personnel who continuously update their skills, organizations become increasingly vulnerable to sophisticated attacks.
What organizations can do:
- Leverage external expertise: The most effective way for organizations, especially smaller ones, to bridge the cyber skills gap is to rely on external providers or consultants for help. In fact, studies show that around 70% of organizations already do just that.
- Prioritize security awareness training: Closing the cyber skills gap isn’t just about hiring. It’s also about upskilling your existing team and general workforce on cybersecurity awareness. Schedule regular training sessions for all employees to cover phishing detection, safe internet/email use, and company security policies.
- Automate where possible: Bridge the talent gap by using security automation. Modern security suites can automatically block common attacks and handle routine tasks. Set up automated patch management so systems stay updated with minimal human intervention.
Conclusion
As we’ve explored, the cybersecurity landscape in 2025 will be defined by the rise of AI-powered attacks, vulnerabilities from rapid tech adoption, growing supply chain risks, stricter regulations, and the persistent cyber skills gap. These trends present both significant challenges and opportunities. SMBs that manage to address them effectively will not only protect their assets and reputation but can transform security into a genuine competitive advantage.
At OSIbeyond, we understand that trying to stay ahead of the trends described in this article can be overwhelming, especially with limited internal resources. Our comprehensive Managed IT and Cybersecurity services are specifically designed to help SMBs in the Washington D.C., Maryland, and Virginia areas stay ahead of evolving threats. Reach out today to learn how we can help strengthen your security posture for 2025 and beyond.