5 Top Cybersecurity Trends to Watch in 2026

Cyber threats aren’t slowing down, and businesses that don’t keep up are putting their data and operations at serious risk.

In 2025, organizations experienced an average breach cost of $4.44 million globally, with the U.S. reaching a record high of $10.22 million. Ransomware incidents surged 32-58% year-over-year, while deepfake fraud losses exceeded $1 billion for the first time. Situations like this highlight just how quickly cybersecurity threats are evolving. Attackers are getting more sophisticated, and companies that don’t adapt will face expensive breaches, system downtime, and compliance headaches. Staying ahead of these risks means understanding the key cybersecurity trends in 2026. 

Key Takeaways 

• AI-powered attacks surpassed $1 billion in losses during 2025, with deepfake incidents nearly quadrupling
• Zero trust security adoption reached 63-96% of organizations, though only 2-10% have achieved mature programs
• Cloud security remains critical, with 80% of companies experiencing breaches and 45% of all data breaches now originating from cloud environments
• Ransomware attacks hit record highs with 7,400+ confirmed incidents in 2025, though payment rates dropped to historic lows of 25%
• Cybersecurity regulations continue tightening worldwide, with CIRCIA final rules expected in May 2026 and new state privacy laws taking effect

AI-Powered Cyberattacks Are on the Rise 

AI is no longer just a tool for businesses—it’s also a weapon for cybercriminals. Hackers are using artificial intelligence to automate attacks, create convincing phishing scams, and bypass traditional security defenses. 

In 2025, deepfake fraud losses exceeded $1 billion for the full year, with cumulative losses reaching $1.56 billion through October 2025. The Arup Engineering case demonstrated this threat when attackers used deepfake video to steal $25.5 million by impersonating multiple executives in a video call. Employees, believing they were following direct orders, transferred millions of dollars to fraudulent accounts before realizing they had been deceived. 

More recent incidents from late 2025 show the threat continues to escalate. A Singapore multinational firm lost $499,000 in March 2025 to a similar deepfake CFO video call scam. In Georgia, an AI-powered financial scam using deepfake celebrity endorsements defrauded 6,000+ victims of $35 million. Even Ferrari narrowly avoided a CEO impersonation attempt when an executive asked a personal challenge question that exposed the deepfake voice clone.

Phishing scams are also becoming harder to spot, with AI generating emails that look nearly identical to real ones. According to KnowBe4's analysis, 82.6% of phishing emails now use AI-generated content, representing a 1,265% surge since 2023. Meanwhile, AI-powered malware can quickly adapt to security defenses, making traditional detection methods less effective. 

Perhaps most concerning, Hoxhunt research from March 2025 revealed that AI spear phishing agents are now 24% more effective than elite human red teams. This is a complete reversal from 2023 when AI was 31% less effective. This represents a 55% improvement in AI's relative phishing performance in just two years.

To counter this, businesses need to embrace AI-driven security tools that detect and block threats in real time. Machine learning can spot anomalies faster than human analysts, helping organizations safeguard their most valuable assets and giving security teams a better chance of stopping attacks before they cause damage. 

Common AI-driven threats: 

• Automated phishing campaigns that mimic real conversations 

• AI-generated malware that evolves to avoid detection 

• Deepfake social engineering attacks that trick employees into handing over money or data 

Zero Trust Security Is the New Norm 

For years, security models relied on the idea that some users and devices could be trusted. That thinking no longer works. With insider threats, credential theft, and sophisticated attacks on the rise, companies are shifting to a zero-trust approach. According to Gartner's 2024 survey, 63% of organizations worldwide have implemented zero trust strategies, with 81% planning adoption by this year.

Zero trust means verifying every user and device, every single time they try to access the network. It’s not just about adding multi-factor authentication—it’s a complete shift in security strategy. Companies are implementing least-privilege access, micro-segmentation, and continuous monitoring to reduce risks and limit potential damage from breaches. 

The business case for zero trust is compelling. Organizations implementing zero trust save an average of $1.5 million per breach according to IBM's 2025 report, with mature deployments achieving up to 43% cost reduction. Zscaler and Marsh McLennan's analysis of 8 years of cyber insurance claims data found that zero trust could reduce overall cyber losses by up to 31%, potentially preventing up to $465 billion in global annual losses.

Microsoft's Secure Future Initiative provides a major case study in zero trust implementation. By April 2025, they achieved 99%+ of network devices logged in their central repository with automated OS upgrades reaching 91 million systems in 2024.

But adopting zero trust isn’t just a technical change—it requires a shift in mindset. Employees and leadership need to understand that security isn’t just IT’s job; it’s everyone’s responsibility. 

Key zero trust security practices: 

• Granting only the minimum access users need to do their jobs 

• Breaking up networks into smaller segments to limit exposure 

• Continuously monitoring activity for suspicious behavior 

Cloud Security Takes Center Stage 

More businesses are moving their data and applications to the cloud, which is great for flexibility—but it also creates new security risks. Misconfigured settings, weak access controls, and poor monitoring leave companies vulnerable to attacks. 

Recent data shows 83% of companies experienced at least one cloud security breach in 2025, with 83% dealing with at least one cloud security incident in the past 18 months. More significantly, 45% of all data breaches now originating from cloud environments, officially surpassing on-premises incidents for the first time.

Hackers are increasingly targeting cloud environments, knowing that a single misstep in configuration can expose vast amounts of sensitive information. The numbers bear this out: 99% of cloud security failures are the customer's fault according to Gartner, with 23% of cloud security incidents stemming directly from misconfigurations. Even more concerning, 82% of these misconfigurations are caused by human error, not software defects.

Late 2025 saw several major cloud-related breaches that demonstrate these risks:

• The Salesforce/Salesloft-Drift supply chain breach potentially exposed 1.5 billion CRM records across 700+ organizations, including Palo Alto Networks, Zscaler, Google, and Cloudflare
  

• Prosper Marketplace suffered the year's largest single incident with 17.6 million records exposed due to cloud misconfiguration
  

• Blue Shield of California exposed 4.7 million customers through a Google Analytics misconfiguration

Organizations are also struggling with encryption and access controls. Only 8% of organizations encrypt 80% or more of their cloud data according to Thales' 2025 Cloud Security Study, despite 54% of cloud data now being classified as sensitive. Additionally, 97% of AI-related security breaches involved AI systems that lacked proper access controls.

That’s why many companies are turning to managed private cloud solutions that offer better control and stronger security protections. 

Regardless of whether a business uses public or private cloud services, IT teams need to prioritize security through regular audits, strong identity management, and real-time threat monitoring.

Best practices for cloud security: 

• Running frequent security audits to catch misconfigurations 

• Enforcing strict identity and access management policies 

• Using real-time monitoring to detect suspicious activity 

Ransomware Attacks Keep Growing 

Ransomware remains one of the most disruptive cyber threats facing organizations today. From January through December 2025, there were 7,419 confirmed ransomware incidents globally, representing a 32-58% increase over 2024. Q4 2025 alone saw 2,287 unique victims (the largest quarter ever recorded), with December 2025 marking the most active month at 814 attacks.

The ransomware ecosystem has also fragmented significantly. The number of active ransomware groups grew from approximately 85 in 2024 to 124+ distinct groups in 2025, a 46% increase. Additionally, 57 new ransomware groups and 27 new extortion groups emerged during the year, with over 350 new ransomware strains discovered.

However, there's a silver lining: organizations are refusing to pay more than ever before. Payment rates dropped to an all-time low of 25% in Q4 2024, down from a peak of 85% in 2021. The average ransom payment also fell to $1 million in 2025, a 50% decrease from $2 million in 2024.

Late 2025 saw several high-profile attacks demonstrating the ongoing threat:

• Jaguar Land Rover (September 2025): Britain's costliest cyberattack ever at £1.9 billion ($2.4B), halting production for 5 weeks and affecting 5,000+ businesses in the global supply chain

• UK Retailers Campaign: Marks & Spencer lost £300 million ($400M), while Co-op suffered £206M in lost revenue

• St. Paul, Minnesota: The city declared a state of emergency following a ransomware attack that took billing, emergency coordination, and citizen services offline for 2+ weeks

One of the most high-profile cases remains the Colonial Pipeline attack from 2021, which forced the company to shut down operations and caused widespread fuel shortages. The hackers demanded millions in ransom, demonstrating just how disruptive these attacks can be.

To protect against ransomware, companies need more than just backups. Getting the most out of your investment in security means implementing employee training, strong endpoint protection, and well-tested response plans to minimize damage when an attack happens. Cyber insurance is also becoming a key safeguard for financial protection.

Preventing ransomware: 

• Backing up critical data regularly and keeping copies offline 
• Training employees to recognize phishing and social engineering tactics 
• Using advanced endpoint protection to block ransomware before it spreads 

Cybersecurity Regulations Are Tightening 

The SEC's 2023 disclosure rules now require publicly traded companies to report significant breaches within four days. In October 2024, the SEC charged four companies for misleading SolarWinds-related disclosures, with penalties ranging from $990,000 to $4 million. However, in a significant shift, the SEC voluntarily dismissed its landmark case against SolarWinds and its CISO in November 2025, potentially signaling a new approach to enforcement.

Companies that fail to meet compliance requirements now face hefty fines, legal consequences, and reputational damage. With cyber threats to watch in 2025 becoming more sophisticated, some regulations even hold executives personally responsible for breaches, making cybersecurity a top priority for leadership teams. 

Several major regulatory developments are taking effect in 2026:

CIRCIA Implementation: The Cybersecurity and Infrastructure Security Agency (CISA) delayed the final CIRCIA rulemaking to May 2026 from the original October 2025 deadline. When implemented, it will require an estimated 316,000+ entities across 16 critical infrastructure sectors to report covered cyber incidents within 72 hours and ransomware payments within 24 hours.

State Privacy Laws: Multiple new state privacy laws took effect January 1, 2026, including: Indiana Consumer Data Protection Act, Kentucky Consumer Data Protection Act, and Rhode Island Data Transparency and Privacy Protection Act

California CCPA Updates: New cybersecurity audit regulations with phased implementation through 2028-2030, plus the DELETE Act's DROP (Delete Request and Opt-Out Platform) launching January 1, 2026.

NIS2 Directive: 16 of 27 EU Member States have transposed NIS2 into national law, with Germany's implementation taking effect December 6, 2025. The directive imposes 24-hour early warning requirements for incidents, with fines up to €10 million or 2% of global turnover for essential entities, plus personal liability for management.

Staying informed on cybersecurity priorities is critical. Businesses that proactively invest in security frameworks like Concourse's PRISM™ and compliance will be better positioned to avoid penalties.

Key regulations to watch: 

• CIRCIA final rules (May 2026 expected)
• Updates to GDPR and CCPA enforcement
• Stricter industry-specific compliance rules
• Increased requirements for breach reporting
  

Preparing for the Future 

Organizations using extensive AI security tools saved an average of $1.9 million per breach in 2025, according to IBM's Cost of Data Breach Report. Companies implementing zero trust saw up to 31% reduction in insured cyber losses annually.

The lesson? Investing in security today prevents major problems tomorrow. Whether it’s AI-driven defenses, cloud security improvements, or stronger access controls, companies that take proactive steps now will be in a much stronger position going forward. 

For expert guidance on protecting your business, Concourse offers advanced cybersecurity solutions tailored to evolving threats. Contact Concourse to secure your data today. 

Read more about Concourse's layered approach to cybersecurity utilizing best-in-class tools. 

*This post was researched and drafted with the assistance of AI. All posts undergo Concourse team input and full human review, including link and fact-checking, to ensure content is accurate and meets Concourse's editorial standards.