Small to mid-size businesses (SMBs) continue to be significantly affected by cyber breaches. The Business News Daily notes that more than 60% of data breaches are impacting small businesses. As small businesses develop, they are faced with many decisions regarding their data. Typically, cybersecurity is one of the decisions that is put aside and/or is not a primary focus, which is why cyber hackers specifically “go after” small businesses that do not have the proper cybersecurity measures in place. Additionally, most SMBs underestimate the potential risk impacting their companies. According to the article, “82% of SMB owners say they’re not targets for attacks because they feel they ‘don’t have anything worth stealing.’”The NY Post highlights the rise in data breaches across the country that are impacting US businesses. A recent survey about data breaches found “41% of small businesses said they were hit by a breach that cost them more than $50,000 to recover.” For any company, this is a huge loss and could be extremely difficult from which to recover. However, for small businesses, this monetary cost is even more devastating and challenging to overcome. This cost could be “the end” for many SMBs.
The survey not only asked small businesses questions but also asked various consumers who interact with these SMBs. One part of the survey asked consumers if they would continue to work with a small business that experienced a data breach. In the responses, 30% of consumers confirmed they would not continue the relationship and would work with a different business. This statistic emphasizes the reputational risk that can arise from a data breach, which for small companies can be more devastating and enduring than the monetary loss.
Any company, small or large, can be a target for an attack. Contrary to many SMB business owners’ perceptions, almost all businesses regardless of size contain sensitive information about their customers, employees and vendors. Small businesses may be more vulnerable as they most likely do not have the robust cybersecurity measures in place that larger companies may have. Business News Daily outlines some cybersecurity best practices for small businesses to consider.
It is critical that small businesses understand these statistics and take action. As data breaches continue to increase, it is likely that more small businesses will be impacted. Cybersecurity should be a top concern and be addressed by SMBs, as the immediate costs of a breach can be devastating, and the reputational harm could cause catastrophic long-term damage. Talk to a trusted advisor today to evaluate your small business’s cybersecurity measures.