For people starting up a new small business in 2023, cybercrime is one of the biggest risks to be aware of. According to a report conducted last year, as much as 96% of all cyberattacks are directed at SMEs – and given that nearly 2,500 cyberattacks happen every day, it’s clear that this is a sizable threat that needs to be taken seriously.
The risks involved are not only monetary, either. In 2023, customers around the world are more aware of how their data is being collected and utilised by companies. Many of them have already taken the initiative to protect their own data and the practices that are being implemented, learning how to remove digital information from the internet and opt out of data brokers using data for their own monetary gains.
This puts a big emphasis on you to ensure the data that your company has is safe. The reason why 60% of small businesses fail within 6 months of a cyberattack is not just because they have lost money, but because they have lost the trust of consumers, and do not have the ability in the wake of the breach to pull it back.
Budgets, Awareness, Training – Big Opportunities
One of the problems at the moment is that many SMEs don’t realise that they are target number one for cybercriminals. Although it’s the larger breaches that get more publicity – such as the recent NASA cyberattack, or the Yahoo data breaches in 2013 – most cyberattackers will actively seek companies who are on less of a pedestal.
This is because smaller companies have smaller budgets and fewer resources to invest into cybersecurity. This means that they have low-quality training and systems designed to halt a breach when it is happening. For SMEs, it’s far harder to be proactive instead of reactive, and that makes them a prime target.
SMEs are More Likely to Pay-Up
While harvesting data and selling it on to data brokers is an effective way for cybercriminals to turn a profit, it’s not the only way they squeeze their targets for money. While larger enterprises tend to have a crisis management plan ready and waiting in the wings, SMEs are more prone to being caught unawares.
The result? For hackers, an SME is more likely to pay a ransom if they believe doing so will enable them to get their systems back up and running faster. Every moment of downtime pokes another hole in the boat, leaving SMEs desperate. The trouble is, paying a ransom is no guarantee that the trouble will stop. For smaller enterprises caught unawares, however, slim chances are often the best chance they’ve got.
Cybersecurity Policies
The big problem here, however, is not just finances, but rather a company’s mindset surrounding cybercrime. According to a report conducted earlier this year, 36% of small businesses say that they are not concerned about cyberattacks, and a further 51% of small businesses have no cybersecurity measures at all. These are the companies underestimating the impact of cybercrime, as well as how important the future of data privacy is going to be.
Too many businesses are prioritising seemingly “more pressing” matters over their cybersecurity policies, and this essentially leaves the door open for hackers to take advantage. Not only this, but for SMEs collecting data, not having key cybersecurity policies puts them in direct violation of GDPR compliance. For SMEs, it is possible to collect data safely, and protect it from a cyberattack – there just needs to be a stronger emphasis on safety, security, and transparency.