How Much Cyberattacks Cost Small Businesses
Cyberattacks against industry giants often get more attention than the cyberattacks on small and midsize businesses. However, as 43% of cyberattacks are reported to target small businesses, the sobering reality is, it's no longer a matter of if but of when a cyberattack will occur. And unlike their larger counterparts, small businesses don't often have the same necessary infrastructure, trained personnel, or security measures in place to not only safeguard against a cyber threat but to withstand the damaging effects of an attack. That's why 60% of small businesses that are victims of a cyberattack go out of business within six months.
A small business in California for example, had to close its doors and lay off its entire staff when cybercriminals stole $1.5 million from its bank account. The two brothers, who owned the firm, lost their nine-person team and faced mounting attorneys' fees nearing the total amount of the funds recovered, with no quick way to return their customers' money.
With the uptick in the frequency in which cyberattacks are happening – with more than half of the SMBs suffering a breach in 2019 and 2 out of 5 having experienced multiple incidents - the consequences increase as well. A cyberattack can cost businesses of all sizes $200,00 on average. And for an small business, the cost coupled with the damage to brand reputation is enough to shut their doors for good.
A solid brand reputation is one of the greatest selling tools for an small business. But when a third of customers in retail, finance, and healthcare reportedly stop doing business with companies that have been breached, it's evident a weakly handled cyberattack will affect how a company's brand is perceived by customers and investors even years after it happens.
Small businesses must keep strong defenses against cybercriminals. Empire Industries learned this the hard way. After their network was hacked and they lost a day's amount of work, they reassessed security. "We already had antivirus protection, but we upgraded everything - we added more layers of security."
But for many small businesses, finding the right security measures, especially when no single solution will do it all, proves to be a challenge when most available solutions are made for larger organizations with ample budgets and dedicated IT staff. This issue, however, leaves smaller businesses unprotected, and hackers all too aware of this problem.
Business Internet Service Providers are a great solution for small businesses because not only do they fill the IT gap that many small businesses have, they are also affordable. Providers can deliver security services that require no hands-on deployment or management from the business end-user and maintain visibility of the network, quickly detecting and blocking threats. This not only protects all network-connected devices from phishing, ransomware, malware, etc., but it also frees companies to stay focused on their daily growth operations and innovations.
To learn more about how Secure Internet protection with DNS/DDoS Security built-in, as provided by Optimum Business, can help protect your small business, take a look at our Business Secure Internet options now.