Scary Cybersecurity Facts for Small Business Owners

Did you know that a staggering 91% of small businesses lack cyber liability insurance? Surprisingly, less than 10% of small businesses have taken the step to protect themselves against cyber threats. It’s evident that cyber security is not a top priority for many small businesses, given these statistics. But wait, there’s more! A study conducted by Hiscox revealed that 65% of small businesses actually fail to take action after experiencing a cyber security incident. Can you believe it? Even beyond hypothetical scenarios, small businesses seem to underestimate the importance of handling cyber security incidents with the seriousness they deserve.

Here’s another eye-opening fact: a significant 54% of small businesses don’t have a plan in place to respond to cyber attacks. That’s right, over half of them haven’t proactively prepared for the potential of a cyber attack on their operations. Not taking the time to plan for such a scenario is a risky business move, but unfortunately, it’s all too common.

And here’s the kicker: a whopping 83% of small businesses haven’t set aside any funds to deal with a cyber attack. This lack of preparation manifests itself in various ways. When faced with a cyber attack, having the necessary funds readily available can make a world of difference in reacting swiftly and effectively.

But the costs of recovering from a successful cyber attack can be astronomical. On average, small and mid-sized businesses spend a staggering $955,429 to restore normal operations in the aftermath of an attack. That’s in addition to the average amount of $879,582 that is stolen from these businesses. Surprisingly, the cost of recovery far outweighs the actual amount taken during the cyber attack itself.

Incredibly, 25% of small businesses are unaware that cyber attacks can result in financial losses. It’s alarming to think that a significant portion of small businesses fail to realize the potential financial impact of cyber crime. Beyond the risks to customer, employee, and business information, the high costs associated with cyber attacks are often underestimated.

Small businesses are particularly vulnerable to social engineering attacks, experiencing a staggering 350% more incidents compared to larger enterprises. These attacks, such as phishing, baiting, quid pro quo, pretexting, and tailgating, exploit human interaction and psychology to bypass security measures. CEOs, CFOs, and executive assistants with access to high-level accounts are popular targets.

Moreover, small businesses face a high rate of targeted malicious emails, with an alarming one in 323 being malicious. These threats, including phishing, spam, and email malware, mainly target businesses with fewer than 250 employees. Considering that the average office worker receives 121 emails per day, this risk becomes even more significant.

The financial consequences of cybersecurity incidents at SMBs can be staggering. On top of the cost of ransoms paid and money stolen, the total cost includes expenses related to downtime, lost business, emergency solutions, legal fines, and regulatory penalties. Unfortunately, many small companies lack emergency funds or insurance coverage to mitigate these expenses effectively.

Furthermore, a startling 75% of SMBs would not be able to continue operations if they fell victim to a ransomware attack. A survey of 1,200 SMBs conducted by Momentive on behalf of CyberCatch, a San Diego-based cybersecurity platform provider, revealed this worrisome statistic. Beyond the financial impact of paying ransom, the total disruption to business operations places these companies in an even more precarious position.

The importance of robust cybersecurity measures cannot be overstated for small businesses, as the risks and potential consequences are significant. These startling facts shed light on the importance of prioritizing cyber security measures for small businesses. It’s time to recognize the risks and take action to protect your business from the ever-growing threat landscape.