Cafes, restaurants, pubs, motels need to upgrade cyber skills, new Cyber Wardens research reveals

Small business snapshot highlights industries most in need of cyber safety support

FEBRUARY 23, 2026: Australia’s small businesses are becoming increasingly cyber savvy, but new research reveals many sectors need support to strengthen their online defences.A Cyber Wardens report launched today reveals that cyber awareness varies between industries, while 79% of respondents fear they would not recover from an attack.

The report identifies key opportunities to support vulnerable sectors such as hospitality, which is the slowest to adopt cyber-safe practices. Only about 1 in 2 (47%) of hospitality businesses – including accommodation and food services providers – are using unique passwords or passphrases.

The research found 37 per cent of hospitality businesses cloud-based back-up systems in place, while just 1 in 3 protect their business emails with multi-factor authentication (MFA).
The 2026 Small Business Cyber Security Pulse Check Report marks the final year of a multi-year research project tracking small business cyber security behaviours and attitudes.

Encouragingly, the study of more than 1570 small business owners and employees in a cross-section of industries indicates a stronger cyber safety culture has developed over the past three years. Workplace discussions about online security are becoming more commonplace, confidence in responding to attacks is rising, and the use of unique passwords or passphrases has more than doubled.

Highlights:

  1. Hospitality and accommodation businesses least likely to adopt basic cyber security measures, with just 47 per cent using strong, unique passwords.
  2. 4 in 5 small businesses have experienced a cyber incident, up 3% since 2023.
  3. Risky habits such as hitting ‘snooze’ on software updates and personal device use for work persist across industries.
  4. 1 in 3 are sharing sensitive information with AI tools such as ChatGPT.
  5. Cyber crime is considered a top-three threat to survival.

 

But COSBOA CEO Skye Cappuccio said there remains a disconnect between concern and action across small businesses.

“Small businesses are becoming more cyber savvy, but there’s still a dangerous gap in basic safety measures that are leaving small businesses exposed,” Ms Cappuccio said.

“These findings are a wake-up call to act – and underscore that our work in building the cyber resilience of small businesses is far from over.

“Cyber criminals are becoming more cunning and sophisticated by the day, fuelled by technologies like AI, but too many small businesses remain reactive. 

“Our message is simple: don’t be a sitting duck for cyber crime. It takes ten minutes to start your cyber security journey, but only seconds for a cyber criminal to devastate your business.” 

The revelations of low cyber safety levels among hospitality businesses and accommodation providers highlight an opportunity to raise much-needed awareness among owners and their staff. Only 37 per cent view cyber crime as a threat to their livelihoods.

“The findings are particularly concerning as hospitality is one of the top users of

digital and platform-based payment options, which face higher technical risks such as account takeovers,” the report says.

Among the biggest cyber threats to hospitality businesses include data breaches, phishing emails, ransomware and business email compromise (BEC). 

Ms Cappuccio also said the passport, payment and travel details collected by small accommodation businesses made them a lucrative target for cyber criminals.

“As these industries continue to embrace digital tools, cyber resilience is no longer optional,” Ms Cappuccio said. 

“Protecting customer and traveller data and keeping businesses running safely is essential for the long-term health of these sectors. The good news is that most cyber attacks targeting hospitality and other businesses are preventable.

“Basic cyber hygiene, staff awareness and practical training can dramatically reduce risk – without requiring major investment or technical expertise.”

Australian Restaurant and Cafe Association CEO Wes Lambert said the findings sent an important message to operators. 

“The latest Cyber Wardens research highlights that hospitality businesses would benefit from additional support to boost their cyber resilience, especially as owners juggle the daily demands of keeping their businesses afloat,” he said.

“They may not realise just how vulnerable they are to cyber crime, but cafes and restaurants hold valuable customer information – from names and email addresses to booking histories. Casual staffing, shared logins and fast-paced environments all increase the risk of cyber attacks, which is why free programs like Cyber Wardens can make all the difference.”

The report found small businesses in the professional, scientific and technical services industries are Australia’s cyber heroes, with the strongest practices in place.

But healthcare businesses – a top target for cyber criminals – trail behind most other industries in foundational cyber security measures.

Cyber crime remains a top-three threat for all small businesses, with most owners admitting they would struggle to survive the financial fallout of an attack, the report found.

AI is posing a rising threat, but fewer than 1 in 5 (18%) have put guardrails in place – such as AI policies – to ensure the technology helps rather than harms their business.

Cyber Wardens is calling on every small business to prioritise cyber awareness as part of their everyday business operations.

Cyber Wardens is a national initiative of the Council of Small Business Organisations of Australia (COSBOA), supported by the Australian Government and an industry alliance led by Telstra, CommBank and the Australian Cyber Security Centre, to help protect Australia’s 2.6 million small businesses from online threats.

To arrange an interview, please email media@cyberwardens.com.au or call 0466 027 957.

The report can be downloaded here.

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