Why should a small business need to worry about cybersecurity? Sure, there are hackers and data thieves out there, but they only go after big corporations, right? Some of the numbers regarding the threat to small businesses may surprise you. While you shouldnāt let these statistics paralyze you, or shy away from the competitive advantage technology can provide, you need to be aware of the risks that exist. Let me outline for you why you need cybersecurity, and give you some numbers for perspective.
Organizations are relying more and more on cloud services. While this provides extra convenience, it is also a great target for potential hackers. Additionally, any device connected to the internet can be attacked. Munichre.com reports that āone-third of U.S. consumers experienced a computer virus, hacking incident or other cyber attack in [2016].ā Clearly, attackers are more active now that they know the pool of potential victims is growing. Not only that, but they know that businesses are viable targets as well. On October 31 of last year, nudatasecurity.com reported that ā64% of companies have experienced web-based attacks.ā Unfortunately, the increased convenience and capabilities that come with cloud storage, digital technology, and the like, also bring increased risk in the form of viruses, ransomware, and data breaches.
These attacks can damage your business in any one of a number of ways. The most prominent form of damage among small businesses, however, is financial. A 2015 report by juniperresearch.com estimated that āthe average cost of a data breachā¦will exceed $150 million by 2020.ā Now, this number is inflated by the cost of breaches to major corporations. Still, a recent Poneman Institute study revealed that small businesses (less than 1,000 employees) spent an average of $879,582 recovering from data breaches (between May 2015 and May 2016), because of theft or damage. Also, revenue losses among businesses breached averaged $955,429. This can be absolutely devastating for your business. According to the study, 60% of small businesses who experience these attacks go out of business within six months.
At this point, it may seem obvious that there is a serious threat to small businesses from cyber attackers and data thieves. According to smallbiztrends.com, ā43% of cyberattacks target small businesses.ā That number is staggering, considering the number of large firms and individuals who could be targeted instead. In a June 2, 2017 article for Business News Daily, Sammi Caramela observed that āTheā¦reason small businesses make such appealing targets is because hackers know these companies are less careful about security.ā Most small business owners underestimate the threat to their businesses. As Caramela points out, āsmall businesses fall into hackersā cybersecurity āsweet spot:ā They have more digital assets to target than an individual consumer has, but less security than a larger enterprise.ā
You donāt have to live in fear of a cyberattack on your business. But you shouldnāt be naĆÆve either. Next week, weāll go over some valuable tools you can use to protect your business.
Also, be sure to get the Cybersecurity Workbook from your SBDC Adviser.