Cyber Security – Shocking Stats Small Businesses Must Know
It takes 20 years to build a reputation and few minutes of cyber-incident to ruin it.
If you don’t have a cyber security strategy, your small business is in danger. Cyber attacks are becoming increasingly common in small businesses, and it’s time to stop thinking it’ll never happen to you. While cyber attacks targeting major companies like Facebook, Equifax, and Yahoo have made national headlines, these enormous corporations are not the only businesses prone to security threats. According to the 2019 Data Breach Investigation Report, small businesses account for 58% of data breaches. Unfortunately, that’s just the tip of the iceberg. Keep reading for the latest cyber security statistics every small business owner needs to know.
Cyber Security for Small Businesses – Statistics & Facts
Two-thirds of Small Businesses have fallen victim to a cyber attack in the past 12 months.
If you’re in of the 33% minority of small businesses that did not experience a cyber attack, consider yourself lucky. Be proactive in protecting your sensitive data, because you might not be this lucky two years in a row.
Email Spam is the most common method for Cyber-Criminals to spread malicious software (malware).
Employees are the most vulnerable part of your small business network. In fact, 60% of SMBs cite employee negligence as a cause of data breaches. Email gives cyber attackers a direct line of contact to your employees. Email users are only human, sometimes clicking without thinking. The most common malicious emails are disguised as bills, email delivery failure notices, and package delivery confirmations. Typically, these emails appear legitimate and prompt employees to share sensitive information.
Knowledge is power. It’s important for small business employees to understand how to identify phishing emails and why it’s vital to think before you click. Your network security depends on it.
77% of Small Businesses plan to outsource Cyber Security.
Many small businesses lack the in-house personnel necessary to handle cyber security functions, so it’s no surprise that small business owners believe their cyber security tasks will be completely outsourced within the next five years.
On average, one cyber attack will cost your small business $53,987.
To break it down further:
- Companies with 10-49 employees lost $41,269.
- Companies with 50-249 employees lost $48,686.
- Companies with 250-1,000 employees lost $64,085.
40% of small businesses experienced 8+ hours of downtime due to a security breach.
That’s an entire workday. Think about your company on it’s busiest day. How many employees are working? How many customers usually pass through? If 8 hours of potential downtime doesn’t scare you, do the math. Time is money, after all. How much money would your business lose if operations came to an unexpected halt for an entire workday or longer?
When it comes to your cybersecurity, there’s no such thing as being over-prepared. While it’s important that the vast majority of respondents remain concerned about a breach, concern itself isn’t enough. Individuals often say their lack of cybersecurity action is because it seems too time-consuming in the moment. But implementing cyber safeguards today will save time and financial resources tomorrow, should a breach occur.
– Frank O’Brien, Chubb North America Personal Risk Services
A small business’s cyber security budget should be at least 3% of a company’s total spending.
Unfortunately, even with the number of cyber attacks per year on the rise, most small businesses spend less than $500 annually on information security.
60% of small businesses go out of business within six months of a cyber attack.
Now is the time to be proactive in protecting the empire you’ve worked so hard to build.
How to Lower the Risk of Cyber Attacks on your Small Business
- Update your software regularly. Software providers continuously work towards the next level of security protection, and installing the latest updates will strengthen your technologies security, making your devices less vulnerable to cyber crime.
- Train your employees in cyber security best practices. Equip them with knowledge and ensure that if they have questions about cyber safety, they know who to ask.
- Strengthen your Passwords. Regularly updating passwords and using hard-to-remember strings of symbols is a vital step to prevent hackers from easily gaining unauthorized access.
- Implement a secure backup system that allows you to store sensitive data off-site for fast and easy restores in the event of a cyber attack.
- Audit your cyber security monthly to identify viruses, malware, and any suspicious activity.
- Develop a Cyber Attack Response Plan. Establishing a formal plan to handle potential cyber incidents will help your small business confidently respond to actual attacks.
Cyber Security Stats for Small Business: The Bottom Line
Though these cyber security facts aren’t the happiest news, they’re the nature of running a small business. Addressing the threat of cyber attacks on small businesses can be intimidating and stressful, however DataGroup Technologies can give you peace of mind with custom cyber security solutions. Invest in cyber security for your small business, and make sure your business doesn’t become just another scary number in the grand scheme of SMBs cyber crime.