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10% of SMBs Hit by Cyber Security Incidents Go Out of Business

November 7, 2019

New research by the National Cyber Security Alliance (NCSA) has shed more light on the ways small to medium size businesses (SMBs) deal with cyber crime. The report demonstrated that the consequences of cyber security can be catastrophic if SMBs are not prepared.

10 of SMBs Hit by Cyber Security Incidents Go Out of Business

Cyber security awareness

One of the biggest cyber security issues in the last ten years has been more about attitude than solutions. For a long time, businesses have not taken cyber security threat seriously. It can be hard to when it’s something you are unaware of and possibly don’t really understand. Small organizations in particular could be guilty of thinking they would never be a target.

There is a long way to go, but attitudes are starting to shift. The report interviewed over 1,000 small business decision makers and found that the majority now recognize that they are a target. Some 88 percent said they believe cyber criminals could consider them a target. And 46 percent believed that strongly, and said they are a ‘likely’ target.

Recognizing the threat is the first important step that businesses across industries are starting to take. As such, only 9 percent in a subsequent question said cyber security was a low priority for them. Most of the other 91 percent rated it as a somewhat important or high priority.

Are organizations prepared for cyber attacks?

More SMBs are aware of cyber security issues and consider it a priority, but are they truly prepared?

The study found that there are still significant consequences suffered by many of the organizations hit by cybercrime. It found 37 percent had taken a financial loss when hit by cyber attacks, 25 percent had filed for bankruptcy, and 10 percent had even gone out of business.

When not prepared for such attacks, the consequences can be drastic. Yet the report found that only 46 percent of SMBs felt they were prepared to deal with a cyber security incident. That is not high enough. If you delve deeper into the report, there are still some common shortcomings that organizations display. For example, 27 per cent of the organizations are still not using business backup services on a regular basis. And only 41 percent use multi-factor authentication to protect access to sensitive information. There are more examples of cyber security shortcomings in the full data set.

The perception and reality is off at some organizations. They say and believe cyber security is a priority, but the solutions and approaches to back it up are not there. Don’t be one of these companies. Here at GDS we have the expertise to deliver strong scalable cyber security to organizations of all types and sizes.

We can make cyber security considerations a part of your organization’s everyday working life without compromising convenience and workflow. Find out more.