There’s a high chance your family business clients have faced a cyber-attack, warns Deloitte

There’s a growing disconnect between rising cyber risk and the preparedness of family-owned enterprises, according to a new report.

Nearly three quarters of surveyed family enterprises reported experiencing at least one cyber incident over the past two years, while one in three said they had been hit multiple times. Malware, phishing, and social engineering attacks were among the most common, reflecting how cybercriminals are exploiting human and technological vulnerabilities alike.

Deloitte Private’s Family Business Cybersecurity, 2026 report is based on a global survey of 1,587 family businesses across 35 countries, each generating at least $100 million in annual revenue, along with in-depth interviews with 30 senior executives. The findings paint a sobering picture of increasing exposure to digital threats.

“Cybersecurity has become one of the most urgent issues facing family enterprises today,” said Adrian Batty, Deloitte Private Global Family Enterprise Leader, Deloitte Global. “Deloitte Private’s latest Family Business Insights Series report reveals how these organizations are balancing tradition with transformation, protecting not just their data, but the legacy and trust that define them. The findings offer a blueprint for building lasting cyber resilience in an increasingly complex digital world.”

While awareness of cyber risk is high with almost 70% of respondents viewing it as a moderate to severe threat, confidence in preparedness lags behind. Just over half believe they are well equipped to manage a cyberattack. Many firms continue to depend on foundational safeguards such as system updates, network security, and multifactor authentication, with fewer adopting more advanced practices like formal cyber maturity assessments or regularly tested incident response plans.

Only 4% of respondents said they experienced no losses or damage following an attack with most citing financial losses, operational disruption, or reputational harm, outcomes that can be particularly damaging for family enterprises built on trust and long-term relationships.

“In an increasingly digital world, the challenges that family businesses face today are multidimensional,” said Dr. Rebecca Gooch, Deloitte Private Global Head of Insights, Deloitte Global. “Every click, connection, and collaboration carries potential risk and opportunity. The path forward for family enterprises requires treating cybersecurity not as a cost, but as a strategic investment in resilience, reputation, and the continuity of the legacy they’ve spent generations building.”

The report outlines several steps for strengthening cyber resilience, including elevating cybersecurity to a strategic priority, increasing employee awareness, conducting regular readiness evaluations, and establishing clear response and recovery frameworks.

The report highlights how cybersecurity is no longer just an IT issue, but a core component of enterprise value, succession planning, and legacy preservation, areas where trusted advisors are uniquely positioned to influence long-term outcomes for family-owned businesses.