Employee Behavior Creates Cybersecurity Risks for SMBs

• •64% of employees use unauthorized AI tools, expanding shadow AI risks.
• •76% of employees reuse passwords, increasing vulnerability to account takeovers.
• •70% use public Wi-Fi for work, exposing organizations to man-in-the-middle attacks.

WatchGuard Technologies' 2026 Cybersecurity Hygiene Report reveals that employee behaviors are significantly increasing cybersecurity risks for small- and medium-sized businesses (SMBs). The report found that 64% of employees use unauthorized AI tools, contributing to the rise of shadow AI and creating visibility gaps for organizations. Additionally, 76% of employees admit to reusing passwords across multiple accounts, which heightens the risk of account takeovers and data breaches. Remote work practices exacerbate these vulnerabilities, with 70% of employees using public Wi-Fi and 50% accessing corporate resources without VPN protection. Furthermore, 55% of employees reported using work devices for personal activities, increasing the risk of malware infections and phishing attacks. The findings indicate that while organizations invest in security tools, they often lack insight into employee actions that could lead to breaches. Managed service providers (MSPs) are positioned to assist SMBs in addressing these cybersecurity hygiene gaps.