MSP Threat Trends to Watch in 2026

In 2026, managed service providers (MSPs) face a cyber threat landscape more complex and aggressive than ever. Traditional malware continues to evolve, converging with AI-driven attacks, while emerging technologies expand attack surfaces. To stay ahead, MSPs need a forward-looking approach to risk and defence. Here’s what to watch and how to protect your clients. 

1. AI-Powered Phishing & Deepfake Attacks 

Phishing remains a top entry point for cybercriminals, but generative AI has made attacks far more sophisticated: 

• Hackers use AI to craft hyper-personalized emails, scraping social media and public data to mimic trusted contacts, even down to family voice and tone. A single click could be devastating  

• Phishing-as-a-Service (PhaaS) attacks continue to grow, now leveraging AI-driven kits capable of real-time adaptation. In early 2025, over one million PhaaS attacks were recorded, utilising real-time interactive kits to evade detection  

• Deepfake technology is evolving. Voice and video impersonations of executives bypass traditional defenses and are being used in increasingly convincing scams. 

What MSPs should do: Implement phishing-resistant authentication, conduct realistic social engineering simulations for each client environment, and maintain continuous user training to spot advanced scams. 

 2. Ransomware’s Shift to Covert, High-Impact Extortion 

Ransomware remains a top threat, evolving in sophistication and strategy: 

• Threat actors are increasingly conducting human-operated ransomware attacks, manually mapping networks to implant malware stealthily, prioritizing data exfiltration before encryption  

• The shift to double and triple extortion exfiltrate data, demand ransom, then threaten to leak or DDoS clients has become alarmingly common  

• Thanks to Ransomware-as-a-Service (RaaS), even less sophisticated criminals run professional-grade attacks often using encryption-less exfiltration for stealth  

• In 2024, the energy sector experienced a 500% spike in ransomware, with critical industries remaining prime targets  

What MSPs should do: Upgrade their MDR/XDR (managed detection and response) stacks, enforce zero trust access across networks, and ensure robust and tested backups (DRaaS). Having business continuity plans is no longer optional. 

3. Automated Malware and Smishing 

AI is not only crafting phishing emails - it’s refining malware: 

• ChatGPT has been weaponized to create malware loaders, credential stealers, and multi-stage scripts even by novice threat actors. 

• Smishing (SMS phishing) is becoming more dangerous, with attackers harnessing conversational AI (like “AbuseGPT”) to write compelling text messages that prompt victims to act. These mimic trusted brands (banks, delivery services) or personal contacts, often including urgent requests, fake 2FA codes or "suspicious activity" alerts. 

What MSPs should do: Work with clients to deploy Mobile Threat Defence (MTD) with integrated SMS filtering for proactive blocking of malicious texts, extend social engineering simulations to include SMS scenarios (e.g., fake MFA alerts), enforce user training to never click links or reply to unexpected texts, always verifying requests via trusted apps or channels and enable continuous monitoring of mobile endpoints. 

4. IoT (Internet of Things), OT (Operational Technology) and Supply Chains Threats Escalate 

Attack surfaces are expanding as connected technologies multiply:  

• IoT devices are now prime targets - IoT attacks grew by 124%, while 85% of cloud security alerts stem from account compromises. 

• Attacks are increasingly coming through overlooked supply chain vendors, as criminals exploit third-party access . 

• Emerging tech like quantum computing and AI agents introduces yet more potential attack vectors. 

What MSPs should do: Enforce network segmentation to isolate IoT/OT, audit all third-party systems, and deploy AI-driven monitoring capable of discovering anomalous behavior across cloud, on-premises, and OT environments. 

Why These Trends Matter for MSPs  

• Compliance & SLA pressure: UK and US clients demand robust regulations like GDPR and HIPAA. MSPs must support these requirements or risk losing contracts.  

• Market differentiation: Clients expect proactive threat defence, not just reactive break-fix services. MSPs that can offer AI-backed security and predictive analytics will command premium prices.  

• Talent shortage: Given the persistent cyber skills gap, outsourcing or partnering with an expert security provider is often the most reliable way to deliver expertise 24/7. 

How Uptime Complements Your Security Strategy  

At Uptime, we help MSPs build and deliver future-ready security services:  

• 24/7 Helpdesk support, providing user assistance and issue resolution while quickly identifying and escalating potential security incidents to reduce risk and mitigate attacks  

• Pro-Active Monitoring, Remote Remediation and Root Cause Analysis (RCA)   

• Audit and Optimise RMM systems: see if your assets are deployed correctly and are working efficiently as intended.   

• 24/7 NOC support: enabling MSPs to confidently sell continuous monitoring services  

• Seamless Staff Augmentation, filling security-skilled roles without extended hiring 

In 2026, the threat landscape demands a leap MSPs must transition from traditional tools to intelligent, adaptive defenses. Partners like Uptime can elevate your security, drive margins, and let you stand out in a crowded market. Talk to us to see how Uptime can help you.