Because of their size, most small firms sometimes don’t think of themselves as notable targets of hackers and online threats. Government agencies and major corporations, however, are extremely challenging targets despite being extremely lucrative ones. Although they are interested in valuable targets, most cybercriminals are actually opportunists who tailor their tactics to target easy targets.
Small Businesses: The Best of Both Worlds
They have access to crucial data that cybercriminals are after, including employee and customer records, bank account information, knowledge of the company’s finances, and connections to larger networks. Additionally, the majority of small enterprises typically have fewer resources allocated to cybersecurity, less advanced security architecture and processes, and an insufficient number of skilled staff to handle and respond to threats, making them extremely profitable targets for bad actors. Because of this, 60% of small businesses that experience a cyberattack fail within six months.
The frequency of cyberattacks is increasing, with 2 out of 5 SMBs reporting several incidents in 2019 and more than half reporting a breach. As a result, the repercussions are also getting worse. Businesses of all sizes might incur a cyberattack cost of $200,00 on average. Additionally, the expense and harm to the company’s reputation are sufficient for small businesses to permanently close their doors.
Cyberattacks & How They Affect SMBs
Here are some potential consequences if a cyberattack hits your business.
- Cyberattacks cost small businesses money
The average cost of a data breach for companies with fewer than 500 employees is $2.98 million, and the average cost per compromised record is $164, according to a survey by IBM and the Ponemon Institute. Despite the fact that a small business’s prices will vary depending on the occurrence and its damages, you probably won’t come out of it undamaged.
Businesses are liable for direct costs of a cyberattack, including:
- Handling urgent repairs and damages
- Paying ransom money
- Supplying free or reduced-priced goods and services
- Settling fines
- Revenue loss
- Hiring a professional company to investigate the attack
Cyberattacks can also result in legal, civil, and regulatory obligations that cast a shadow over a company’s activities and future. The value of a company can be lowered by all of these expenses and more.
- Cyberattacks affect corporate operations at a cost that is indirect.
Cyberattacks entail indirect costs relating to unforeseen downtime, productivity loss, and decreased morale in addition to direct expenditures. The business owner or IT manager is unable to pursue business expansion or take care of their other tasks as they attempt to contain the incident and evaluate the losses. Operations may come to a grinding halt, especially if you rely on potentially vulnerable web-based apps.
The stress and negativity at work may have an impact on team members’ morale, particularly if faulty security procedures were a factor in the attack.
- Many businesses raise their pricing in response to cyberattacks.
The expenses of cyberattacks are frequently passed on to customers, who wind up footing the bill for the organization’s lack of preparation. In order to offset the costs associated with a cybercrime attack, 60% of penetrated organizations increase their rates, according to IBM.
Some customers can object to rising charges by switching to rivals that provide more affordable options and more protection.
- A company’s reputation may be damaged by cyberattacks.
The reputation of a company can be seriously damaged by cyberattacks. Customers may reasonably be hesitant to frequent establishments that have been the target of attacks. Similar to how investors can see being the victim of a hack as being negligent and not wanting to be involved. Qualified job candidates who don’t want to be associated with a bad company may be turned off by a soiled reputation.
Why Invest in Cybersecurity Services?
The average cost of a data breach for small organizations is $2.98 million per occurrence. Even if the exact amount depends on the size of your firm, it’s still a significant expense that could be problematic for smaller companies. In fact, six months after becoming the target of a data breach or cyberattack, 60% of small businesses fail.
Contrary to popular belief, cyberattacks are expensive in many different ways. Unlike with other destructive calamities, you are not just paying for immediate damage and repair. While attempting to fix your company and get it back on its feet, you must also deal with operational downtime and lost productivity, reputational harm, fines, business loss, legal expenses, ransom payments, and many other variables that increase costs. Small businesses must spend money on cybersecurity services since their future and financial security are at stake.
Make cybersecurity an ongoing process
Preparation is the best approach to lessen the harm caused by a cyberattack. This can entail taking steps like creating a thorough cybersecurity plan and hiring specialists as needed. It’s a good idea to use strong antivirus software, keep software updated with the most recent security patches, and protect devices from hackers.
Protect Your Business with Cybersecurity Services from WorkPlace Connect
For many small businesses, a cyberattack may seem unlikely and abstract, so they ignore the risk. That is a massive mistake. Cyberattacks are unfortunately common among small businesses and can have devastating consequences. It’s critical to have a plan.
At Workplace Connect, we provide comprehensive cybersecurity services designed to protect your data and enhance your business IT security posture. Whether you need a managed EDR, simulated phishing attacks, data encryption, firewall systems, endpoint protection, patch management, or malware and spam blocking, Workplace Connect has got you covered. Contact us today to schedule a consultation with our cybersecurity experts and let us help you secure your business against cyberattacks.
