Nearly 60% of small UK businesses experienced a cyber incident in the past year, with nearly 70% of breaches starting with stolen credentials. Yet most SMEs still rely on basic password policies and standard multi-factor authentication to protect their digital front door.
Here's the uncomfortable truth: "Attackers aren't breaking the door down anymore, they're simply logging in". And when they do, your current security tools probably won't notice until it's too late.
The Old Security Playbook Is Broken
Look, we've all been there. You've set up strong passwords, enabled MFA where possible, maybe even invested in some endpoint protection. You tick the boxes, feel reasonably secure, and get on with running your business.
But cyber criminals have moved on. When 88% of breaches involve compromised identities, the traditional approach of securing your perimeter whilst leaving internal access largely unmonitored creates massive blind spots.
The Change Healthcare ransomware attack in 2024 demonstrates this perfectly. The ALPHV/BlackCat group didn't use sophisticated hacking techniques or zero-day exploits. They simply exploited a single server that lacked multi-factor authentication. The result? Nationwide prescription drug disruptions lasting over ten days and recovery costs exceeding $1 billion.
Your business faces the same vulnerabilities every day. Microsoft's latest Digital Defense Report confirms that identity compromise is now the most common attack vector, yet most SMEs are still fighting yesterday's war.
What Is ITDR and Why Should You Care?
Identity Threat Detection and Response (ITDR) represents a fundamental shift in how businesses protect themselves. ITDR is a framework designed to detect, investigate, and respond to identity-based threats such as compromised credentials, privilege misuse, or lateral movement attacks, focusing on securing crucial systems like Active Directory and Entra ID by monitoring for suspicious activity.
Think of ITDR as having a security guard who actually knows your staff. Traditional security tools are like CCTV cameras—they record everything but only help after something's gone wrong. ITDR, on the other hand, watches how people normally behave and flags when something's off.
Baseline Normal Behaviour
The system learns how your team typically works—when they log in, what they access, from where they connect.
Detect Anomalies
When someone's behaviour changes—logging in from an unusual location, accessing files they've never touched, or moving through systems differently—ITDR spots it immediately.
Respond Automatically
Instead of waiting for a human to investigate, ITDR can automatically lock compromised accounts, trigger additional authentication, or isolate affected systems.
The SME Reality Check
SMEs face increased vulnerability due to limited security resources, a growing reliance on digital tools, and evolving cyber threats, with heightened awareness of cyber risks and emerging data privacy regulations pressuring SMEs to invest in ITDR solutions.
But here's what the industry analysts don't always mention: you don't need enterprise-grade complexity to get enterprise-grade protection.
Real SME Success Story
A Manchester-based accountancy firm with 15 staff implemented ITDR after noticing unusual login patterns during their busy season. Within two weeks, the system caught an attempted breach where compromised credentials from a phishing email were being used to access client files at 3am. The automatic response locked the account and alerted the IT team before any data was accessed. Total damage: zero. Previous security setup would have missed this entirely.
The Numbers That Matter
Let's talk money. The global ITDR market is projected to grow from USD 12.8 billion in 2024 to USD 35.6 billion by 2029, but that doesn't tell you what it costs for your 20-person business.
Huntress ITDR provides enterprise-grade identity protection without the enterprise cost, currently safeguarding over 1.8 million identities worldwide, with an industry-leading 3-minute response time. For context, that's faster than most people respond to urgent emails.
Beyond the Microsoft 365 Basics
Most SMEs rely heavily on Microsoft 365, and that's actually a good starting point. ITDR solutions are tailored to protect identities in cloud environments like Microsoft 365 and Google Workspace, where user accounts are often the primary target for attackers.
But here's where many businesses trip up: they assume Microsoft's built-in security is enough. With 97% of UK higher education institutions and 35% of SMEs experiencing cyber attacks, Microsoft 365 environments need more than default security settings, requiring 24/7 human-led monitoring that detects and stops business email compromise, credential theft, session hijacking, and malicious OAuth applications.
Microsoft's native security tools are excellent, but they're designed for detection, not response. ITDR fills the gap by not just spotting threats, but actually doing something about them immediately.
What ITDR Actually Does for Your Business
Let me give you three scenarios that happen to UK SMEs every week:
Scenario 1: The Travelling Salesperson Your sales manager travels frequently. Normally, ITDR would learn their pattern—Manchester office Monday, client visit in Birmingham Wednesday, working from home Friday. When their credentials are used to log in from Romania at 2am, ITDR doesn't just flag it—it automatically locks the account and demands additional verification.
Scenario 2: The Disgruntled Employee An employee hands in their notice and starts downloading client databases they've never accessed before. Traditional systems might not notice for weeks. ITDR spots the unusual data access pattern within hours and can automatically restrict their access to sensitive files while alerting management.
Scenario 3: The Phishing Success Someone falls for a convincing phishing email and enters their credentials. The attacker immediately starts exploring your systems. ITDR detects the unusual navigation patterns, unexpected file access, and off-hours activity, automatically isolating the compromised account before damage occurs.
The Implementation Reality
Here's what implementing ITDR actually looks like for a typical SME:
Quality ITDR solutions are "well suited for SME business in terms of securing IT footprint and price point", and the setup process is typically straightforward. Professional MXDR teams deliver 24/7 expert ITDR services for G-Suite, Microsoft 365, and Azure environments at a fraction of the cost of implementing an in-house programme.
Most reputable providers offer:
- Initial setup within 24-48 hours
- Automated integration with existing Microsoft 365 or Google Workspace
- Training for your team on interpreting alerts
- 24/7 monitoring by security experts
- Clear escalation procedures
You're not building an internal security team—you're essentially renting access to one.
Making the Business Case
Recovery costs from identity-based attacks regularly exceed £1 million for larger organisations, but even for SMEs, the average cyber incident costs exceed £10,000 in direct costs, lost productivity, and reputation damage.
When you're weighing up £3,000 annually for ITDR against potential losses of £50,000+ from a successful attack, plus the operational disruption, client trust issues, and regulatory headaches, the mathematics becomes quite clear.
And there's a competitive advantage here too. DORA regulations now require large clients to demand real-time evidence of security posture from their smaller suppliers, and SMEs must demonstrate 24/7 resilience to stay in the supply chain of larger UK and European firms.
ITDR isn't just about protection—it's becoming a business requirement for working with larger clients who need assurance about your security practices.
The Bottom Line
Your business login system is the front door to everything you've built. Cybersecurity must now centre on identity, as attackers increasingly target credentials rather than infrastructure.
The question isn't whether you need better identity security—it's whether you implement it before or after an attack. ITDR technology has matured to the point where SME-appropriate solutions exist, the pricing makes sense, and the business case is clear.
Your current security setup probably protects against the attacks of five years ago. But cyber criminals didn't stop innovating, and neither should your security strategy.
Ready to stop playing catch-up with cyber criminals? Our cybersecurity assessment can identify your specific identity risks and recommend appropriate ITDR solutions for your business size and budget. Because the best time to fix your security was yesterday—the second-best time is now.