In this urgent episode of The Small Business Cybersecurity Guide, hosts Noel Bradford, Mauven McLeod and Graham Faulkner bring together three experts to answer one question: why you’re doing security wrong and what practical steps will actually protect your business. We cover four pressing, unconnected problems that share the same root cause — a massive gap between perceived and real security. Dr. Sarah Chen explains passkeys in plain English: how they remove the shared secret that makes passwords vulnerable, why they defeat phishing, credential stuffing and most brute-force attacks, and exactly how small businesses should pilot them this week. She outlines a three-step rollout (check your identity platform, pilot with five users, support them through setup), recovery and accessibility considerations, device and cost guidance, and the measurable benefits — including dramatically fewer password reset tickets. Former US government cyber analyst Corinne Jefferson unpacks the CISA ChatGPT incident, where the acting director uploaded sensitive government contracting documents to public ChatGPT despite an approved internal alternative. Corinne explains how exceptions become normalized, why convenience often defeats policy, how this damages security culture, and what organizations should do: enforce technical controls, require documented risk assessments for privileged exceptions, and ensure detection is coupled with a consistent response regardless of who triggers the alert. Seamus O’Leary shares a practical small-business win: after realising he’d never introduced himself to his insurer’s incident response team, he discovered £18,000+ of pre-incident services already included in his cyber policy — IR plan templates, tabletop exercises, forensics retainers, quarterly scans and a 24/7 breach hotline. The episode walks through the five-week process he used to onboard the insurer’s IR team, fix gaps, run a tabletop, uncover critical weaknesses (unverified backups, unclear ransomware authority, GDPR notification issues) and win board-level funding to replace vulnerable infrastructure. Noel and the team close with a structural look at cloud sovereignty and vendor concentration: why relying on US cloud providers (AWS, Azure, Google) creates real legal and operational risk regardless of where data is physically stored, how the Cloud Act and post‑Schrems II rules change transfer obligations, and practical mitigation options — encryption with external key control, transfer impact assessments, supplementary measures, vendor diversification and multi‑cloud planning. Key takeaways for listeners: enable and pilot passkeys to eliminate credential-based attacks; enforce technical controls and documented approvals so seniority doesn’t become an exception to security; call your insurer’s IR contacts and use the services you’ve already paid for; treat cloud region selection as latency choice, not legal sovereignty, and perform real transfer impact assessments and mitigation. The episode mixes concrete how-to steps, governance advice, and real-world examples — from phishing-defeating authentication to saving thousands by activating policy services — all aimed at helping small businesses turn security theatre into dependable protection.