The True Cost of a Cyberattack to a Small and Medium Business
The rapid growth of information loss over the last three years is a worrying trend. New regulations, such as GDPR and CCPA, aim to hold organizations and their executives more accountable for the protection of information assets and in terms of using customer data
responsibly. Future incidents of information loss (theft) could add significantly to the financial impact of these attacks as regulators start to impose fines. The cost of business disruption—including diminished employee productivity and business process failures that happen after a cyberattack—continues to rise at a steady rate.
A cybercrime is classified as any illegal or unethical activity committed through the use of the internet or a computer. Cybercriminals use vulnerabilities to exploit holes in a network or a website to extract valuable data. Cyberattacks target the general public, as well as national and corporate organizations. These attacks are carried out through – malicious programs (viruses), unauthorized web access, fake websites, and compromised websites.
Cybercrime can steal personal or business information from their targets, causing far-reaching damage.
The age of digital transformation is here and cyberattacks has accordingly increased to become the fastest-growing form of crime. More so disturbing for modern business owner, cybercrime according to Accenture will cost businesses $5.2 trillion worldwide in the next 5 years. The report also suggests that approximately 43% of these online attacks are targeted at small businesses and even though they are their networks and systems remain the favorite target of the cyber villains, just 14% of the SMBs are ready to defend themselves because most business leaders do not consider cyber security a top priority.
Therefore, because of the expanding plethora of endpoints, landscape of networks and spread of devices, it is a certainty that businesses of every size will get attacked at some point and the security threat question transcends from ‘if’ to ‘when’.
Even so, the insurance carrier, Hisox, report that on the average the digital incident costs from cyberattacks is in the $200,000 region leading to almost 60% being booted out of business within 6 months of after a successful attack to their systems. These overwhelming stats still show that 66% of small business decision-makers are still convinced that they will not be targeted by online criminals. In addition, 6 out of 10 SMBs don’t have a cybersecurity plan in place. Cyberattacks are now smarter, faster, more complex and evolve rapidly. All these underscores the need for awareness and adoption of a strategic digital security plan.
However, other intangible costs including brand reputation and goodwill also add up to the losses that business are faced with in the aftermath of the attack. Then the ancillary expenses such as regulatory compliance penalties, legal fees, audit expenses and losses due to downtime associated with the crime can make it severely complicated for the small and medium business.
Consequently, human error remains the greatest threat to the cybersecurity of the business even though there are upwards of 480 fresh sophisticated threats every minute, says McAfee. More so, this situation is compounded by that fact that only 3 out of every 10 employees are trained annually on digital security safety, thereby rendering even the most cutting-edge digital safeguards redundant.
Thus, small and businesses are faced with the risk of digital disruptions and must adopt a thorough mix of high and low technological strategies to combat cyberthreats. Such solutions can easily be discovered on Cyberpal, the world’s first Cyber Security Marketplace that enables end-users to compare, review, ask peers, buy research reports. The make-up of these strategies should include daily backups and duplicates of data and files that can be retrieved in the event of system compromise or ransomware; installing and regularly updating anti-virus; network firewall; information encryption tools to scan for and counteract viruses and harmful programs; routinely monitoring and scanning any device that’s connected to a computer system or network, and prohibiting the use of removable media (e.g. USB drives) at work; utilizing multifactor authentication (requiring multiple checks and approvals) before authorizing any major, uncommon, irregular, or allegedly time-sensitive requests, etc.
Therefore, cybersecurity by small businesses must be multidimensional, deliberate and evolving. It must consider that the source can be internal, external or both. The modern business must acquire and deal with a lot of sensitive information that could fall into the wrong hands, resulting in financial and other intangible losses. SMBs can now benefit from valuable info on solutions and emerging technologies from CyberPal. Itisthe world’s first Cyber Security Marketplace that enables end-users to compare, review, ask peers, buy research reports for all your Cyber Security requirements. Locate and connect with nearest Resellers for all Vendor solutions. End-users can post a project and Independent cyber experts can send proposals to these end-users and buyers can simply purchase it via the cyberpal platform and award the vendors / contractors the contract. It’s a secure payment platform and end-users benefit from private communication as well. This can help you to drive your cyber security strategy for your business rather than it being a non-starter.