In 2018 the average cost of a cyber attack for a U.S. company was $7.91 million. According to The Financial Journal, the average cost for a business to recover from a data breach is $400,000. This price tag can be disastrous for small and midsize firms (SMF’s).
Here are 5 reasons why SMF’s are at risk.
Cybercriminals Do Not Discriminate
It’s not just large firms, corporations, and businesses that must worry about cyber attacks. SMF’s are easier targets for hackers. Larger firms tend to have cybersecurity solutions in place due to the amount of private information they must protect and are able to allocate money & resources that put security higher on the priority list. For a hacker, trying to breach larger firms cost time & money, putting them at a higher risk getting caught and facing prosecution.
Hackers are targeting SMF’s is due to several reasons:
- Outdated security updates
- Lack of resources for adequate cybersecurity solutions
- Valuable business data (customer information=identity theft)
- Access to larger firms through unprotected connections
Accidental Exposure
A new technique in cyber attacks called ‘Spray & Pray” uses the automated attacking of IP address. Attacking IP addresses is not new, but using automation is. This concept uses intelligent automation techniques to perform mass cyber attacks in a short period of time. According to Computer Business Review, these attacks are so random and aggressive, if SMF’s are vulnerable, they will be attacked.
92.4 % of all malware is delivered through email. A small firm (less than 250 employees) can expect to receive an average of 9 malicious emails a month. Example, a firm of 20 employees can expect to receive 180 malicious emails a month. If security measures such as a firewall or email filtering falter, employees must make the right decision 180 out of 180 times or a firm can be attacked and compromised.
Human Error
According to Verizon’s 2018 DBIR report, human error was the cause of almost 1 and 5 security breaches. It is impossible to prevent 100% of these accidents. Where larger firms have an advantage over SMF’s, is the amount of time and resources they have dedicated to proper security training. Statistics show 4% of employees will click on a Phishing Campaign. Hackers are still using tried and true methods to gain access to private data. With proper training, SMF’s can reduce the likelihood of human error.
Understanding Solutions
Whether a firm is large, midsize or small, being vulnerable to the wide array of security attacks is a reality. Where SMF’s find themselves at a disadvantage is the resources to educate themselves about the solutions that can keep their firm safe. Running SMF’s comes with many challenges outside of cybersecurity. Understanding the technology available to prevent attacks can appear daunting and be put lower on the priority list of day to day tasks, projects and activities to keep SMF’s running smoothly. Confusion about necessary protection and costs keep cybercriminals a step ahead of SMF’s.
Here are some statistics that are showing that cyber attacks are hitting SMF’s at a rapid rate.
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58% of malware attack victims are categorized as small businesses. (Verizon 2018 DBIR )
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Since 2017, cyber attacks cost SMF’s an average of $2,235,000. (Ponemon 2018 State of Cybersecurity in SMBs)
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60% of small businesses say attacks are becoming more severe and more sophisticated. (Ponemon 2018 State of Cybersecurity in SMBs)
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Advanced malware protection and prevention is the #1 budget priority. (2018 IT Budget Priorities Report)