There are several advantages associated with connecting smart grids and microgrids but there are also cybersecurity and data security issues. The integration of these systems, which include devices, sensors, and communication, results in a system with numerous potential weak points that cybercriminals can take advantage of. Some of the major risks are the absence of coherent security measures, weak encryption methods, and poor access control. These gaps can result in interruptions in power supply, control of the grid, or theft of customers’ information. There is also the risk of cascading effects, where a cyberattack on a microgrid may lead to blackouts for the entire microgrid system. To reduce such risks, measures such as security assessment and penetration testing, secure data transfer, use of multiple factors of identification, and constant surveillance for suspicious activities should be put in place. Enhancing the cybersecurity of smart grid and microgrid systems is essential for the continued provision of secure energy.