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Top 5 Cybersecurity Threats Facing Maryland Businesses in 2026
What are the biggest cybersecurity threats facing Maryland businesses in 2026?
The five threats Maryland businesses should prioritize in 2026 are AI-powered phishing, ransomware and data extortion, unpatched software, stolen credentials leading to business email compromise (BEC), and third-party vendor risk. Each one targets the gaps small and midsize organizations most often leave open: people, passwords, patches and partners. The good news is that a handful of foundational controls, such as multifactor authentication (MFA), tested backups and payment verification, reduce exposure to all five.
The stakes are rising. The FBI's Internet Crime Complaint Center (IC3) recorded 1,008,597 complaints and $20.877 billion in reported losses in 2025, a 26% increase over the $16.6 billion reported for 2024 (CyberScoop; FBI 2025 Internet Crime Report). Those are national, self-reported figures, so actual losses are higher.
The threat is also local. Anne Arundel County detected unauthorized activity in its network on February 22, 2025, and found a separate intrusion on August 28, 2026, in which an unauthorized actor copied files from a limited number of systems (Anne Arundel County). If a county government with a dedicated IT department can be breached twice, a 20-person firm in Glen Burnie, Millersville or Columbia is not too small to matter.
1. AI-powered phishing and social engineering
Phishing works because it exploits trust, not software. Generative AI now lets criminals write flawless, personalized messages at scale. The FBI's 2025 report added "AI-related" as a crime descriptor for the first time, logging more than 22,000 complaints and roughly $893 million in losses (SpyCloud analysis of the IC3 report).
One campaign hits Maryland contractors and developers directly. On March 9, 2026, the FBI warned that criminals were impersonating city and county planning officials to collect fake permit fees by wire, peer-to-peer app or cryptocurrency (FBI PSA I-030926-PSA). The emails cite real addresses, case numbers and officials' names, pulled from public permit records.
How to reduce the risk:
• Train staff to spot mismatched domains, unexpected attachments and urgent payment requests.
• Verify any payment or banking change by calling a number you already have, never one in the email.
• Require MFA on email, finance apps and remote access.
• Make reporting a suspicious message easy and blame-free.
2. Ransomware and data extortion
Ransomware locks systems, and modern gangs also steal data and threaten to leak it. IC3 received 3,611 ransomware complaints in 2025, up from 3,156 in 2024 (McDonald Hopkins). Reported direct losses were about $32.3 million, but that figure excludes downtime, recovery and the many victims who never report (CyberScoop).
For a small business, the real cost is days without scheduling, billing or customer records.
How to reduce the risk:
• Keep regular backups, isolate them from the main network and test restores.
• Patch promptly and restrict administrator rights.
• Write an incident response plan that names decision-makers and recovery priorities.
The five threats at a glance
Threat | Warning sign | First control to put in place | Verified data point |
AI-powered phishing | Urgent payment request citing real project details | Call-back verification on a known number | 22,000+ AI-related complaints, ~$893M losses in 2025 (SpyCloud) |
Ransomware and extortion | Encrypted files, ransom note, data-leak threat | Isolated, tested backups | 3,611 complaints in 2025 (McDonald Hopkins) |
Unpatched software | Unsupported OS, exposed remote-access tools | Patch against CISA's KEV Catalog | 1,300+ exploited flaws listed (CISA) |
Stolen credentials and BEC | New inbox rules, changed vendor bank details | MFA plus dual approval on transfers | $3.05B BEC losses in 2025 (Axis Intelligence) |
Third-party vendor risk | Vendors with standing admin access | Least-privilege vendor accounts | CISA lists MFA and least privilege as baseline MSP safeguards (CISA AA22-131A) |
3. Unpatched software and remote-access gaps
Firewalls, routers, VPNs and business apps all carry flaws, and attackers move fast once a fix is public. CISA's Known Exploited Vulnerabilities (KEV) Catalog lists flaws with confirmed real-world exploitation; federal agencies must remediate them under Binding Operational Directive 22-01, and CISA urges every organization to use the list for prioritization (CISA KEV Catalog).
How to reduce the risk:
• Keep an inventory of devices, software and internet-facing systems.
• Turn on automatic updates and patch KEV-listed flaws first.
• Replace unsupported software, and lock remote access behind MFA.
4. Stolen credentials and business email compromise
Attackers often log in rather than break in. With one stolen password, they can impersonate an executive or redirect a vendor payment. BEC caused $2.77 billion in reported losses in 2024 (Nacha) and about $3.05 billion across 24,768 complaints in 2025 (Axis Intelligence).
How to reduce the risk:
• Require MFA and a password manager with unique passwords.
• Remove access the day an employee or contractor leaves.
• Use dual approval for large transfers and any change to vendor banking details.
5. Third-party and supply-chain risk
Payroll, cloud, accounting and IT providers often hold keys to your systems. A vendor with weak authentication becomes your weakest link. A joint advisory from CISA, the NSA, the FBI and allied agencies warns that attackers exploit the trust between providers and customers, and recommends baseline controls such as MFA, protected backups and least-privilege access (CISA AA22-131A).
How to reduce the risk:
• List every vendor that can reach your systems or data.
• Check their security before granting admin access.
• Put incident-notification terms in contracts and review vendor access at least yearly.
Maryland resources and obligations
• Breach notification: Under the Maryland Personal Information Protection Act, a business must notify affected consumers within 45 days of a qualifying breach and notify the Office of the Attorney General first (Maryland Attorney General).
• Insurance and risk guidance: The Maryland Insurance Administration publishes cybersecurity resources for businesses (MIA).
• State funding: The Department of Commerce's SCRIM program served businesses with 50 or fewer employees, but it currently states that applications are no longer being accepted (Maryland Commerce).
• Reporting fraud: Report cybercrime to the FBI at ic3.gov.
Frequently asked questions
Q: Are small Maryland businesses really targets?
A: Yes. Attackers use automated tools that scan thousands of organizations at once, and small firms often lack MFA, tested backups or payment controls. The FBI's permit-fee scam, for example, targets ordinary applicants using public records (FBI).
Q: What is the single most effective first step?
A: Turn on MFA for email, banking and remote access. It blocks most attacks that rely on a stolen password, which drives both phishing and BEC losses.
Q: How can I improve security on a small budget?
A: Start with MFA, automatic updates, isolated backups, short phishing training and least-privilege access. These foundational controls cost little and address all five threats above.
Q: What should I do if I suspect a breach?
A: Isolate affected systems, but avoid powering them off, which can destroy evidence. Call your IT provider, secure compromised accounts and report to IC3. If personal information was exposed, Maryland's 45-day notification rule may apply, so consult legal counsel promptly (Maryland Attorney General).
Q: How do I know whether an invoice from a county office is real?
A: Call the office using the number on its official .gov website, not the one in the email. The FBI notes that legitimate offices do not demand permit fees by wire, payment app or cryptocurrency (FBI).
Protect your business with C&C Office Solutions
C&C Office Solutions, based in Millersville, provides managed IT and cybersecurity for businesses across Anne Arundel County, Howard County and Baltimore. Services include 24/7 network monitoring, endpoint protection, secure email filtering, automated patching, backup and disaster recovery, and compliance support for HIPAA and CMMC.
Schedule a free, no-obligation IT security assessment. We'll review your setup, identify your biggest risks across these five threats and give you a clear plan to close them.
Call (410) 864-0904, email info@ccofficesolutions.com or visit ccofficesolutions.com.
This article provides general information, not legal advice or a guarantee of protection.
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