As businesses of all sizes continue to rely more heavily on the internet to conduct business, the financial losses suffered from cyberattacks on critical infrastructure have skyrocketed†. Cyberattacks were the fifth-ranked risk in 2020 among organizations and thought leaders surveyed†.
Despite this tremendous increase, 54% of surveyed small business owners believe they’re too small to be targets of a cyberattack‡. What they may not know is that cyberattacks on small businesses are actually quite common.
Recognizing the increased risks of cyberattacks against small businesses
Although many small businesses surveyed think that they’re too small to be targeted by cyberattacks, 50% of surveyed companies with fewer than 1,000 employees report having experienced a cyberattack‡.
The reality is that cyberattacks against small businesses are increasing. Of all reported data breaches, 43% involved small businesses§. Cybersecurity professionals speculate that criminals may focus on small businesses precisely because they’re thought to have vulnerable security systems and protocol.
Underestimating the true costs of cyberattacks
It’s difficult to assess the cost of a cyberattack, because there are many financial factors to consider. This includes:
- The loss of income because of downtime
- Business interruption recovery costs such as help desks, customer communications, and new account setups
- Legal expenditures
- Potential regulatory penalties
- Public relations costs to repair damage to the company’s reputation
Because they often have smaller cash reserves to cushion any short-term losses, 60% of surveyed small businesses that are victims of a cyberattack go out of business within six months‡.
Acknowledging the need to be better prepared
Unfortunately, many small businesses lack the necessary resources and plans to detect an attack in a timely manner, respond to it properly, and fully recover from it. Consider the following disturbing facts:
- Almost half of surveyed small businesses say they have no idea how to protect themselves against cyberattacks‡
- 54% of surveyed small businesses don’t have a plan in place for reacting to cyberattacks‡
- Less than 10% of small businesses surveyed have cyber liability insurance‡
Looking out for you and your business
Huntington can help you address many facets of your business by bringing forward key insights, new ideas and thoughtful solutions. Connect with the business banking team at Huntington to discover the many ways we can help you grow and strengthen your business.
