When it comes to cyber risk in newly acquired portfolio companies, there are three attack types that crop up with uncomfortable regularity. All avoidable. All predictable. All expensive when ignored.
1. Cloud Exploits – “Surprise! Your cloud bill is £300k.”
This is by far the most common attack we see. A compromised login, usually due to poor identity management, leads to cloud abuse—think mass compute spin-ups, crypto mining, data access… followed shortly by eye-watering invoices.
The fix? Simple:
- Enforce multi-factor authentication, everywhere.
- Set cost management threshold alerts in AWS / Azure.
When this happens, it’s mortifying for the management team—especially as it’s entirely preventable. Cloud providers won’t complain; unexpected consumption spikes are great for their revenue.
2. Social Engineering Targeting Specific Staff
We frequently see coordinated phishing attacks aimed at executives, chairs and long-established team members. These individuals are assumed to panic-click when framed as urgent governance or compliance issues.
It’s not about age—it’s about part time use, influence and assumed access. Attackers exploit perceived power, not competence. Plain and simple.
In one acquisition, a Chairperson’s Office 365 account was compromised, and the attacker used that to explore the business. As the firm was a recruitment business, vital customer and personal candidate data were at risk.
3. CEO Impersonation – “Do this now! Don’t tell anyone”
One of the common threats involves someone pretending to be the CEO and pushing urgent actions:
“I need you to pay this immediately / buy this gift card / move these funds – do not delay.”
Last year we saw a boutique consultancy lose £50k this way. The finance lead was new, keen to impress, and followed the fake instruction without challenge.
Why the First 60 Days Post-Deal Are Critical
Immediately after a transaction, management focus shifts to investor relationships, forecasting and board prep. That temporary dilution of operational attention creates a perfect window for attackers.
That’s why we flag cyber controls during due diligence and reinforce them immediately post-close. It’s also why we don’t publicly announce the deals we support—unless led by the investor.
Security first, visibility second.
The Takeaway
Cyber vulnerabilities in PE-backed businesses are rarely technical. They’re behavioural and almost always predictable.
Enforce MFA, implement alerting, and watch the human gateways—especially when trust is being built and roles are shifting.
