10 Things Every Small Business Owner Should Know About Cyber Risk

We're demystifying the world of cybercrime to help small business owners determine what risks they face and how to protect themselves from hacks, attacks, and malicious cyber activity.

Check out these 10 things small business owners need to know about cybercrime.

You're Not Too Small to Worry About Cybercrime

Many small business owners make this critical mistake...

Believing they're just too small to worry about cybercrime.

3 out of 5 firms (61%) reported an attack in the last year, up from 45% the previous year. According to Hiscox, 47% of small firms with fewer than 50 employees reported an attack, up from 33% the year prior.

Small business attacks don't garner the headlines and attention of major breaches, which can lull small business owners into a false sense of security.

No matter how small your business is, you could be at risk for cybercrime.

Cyber Attacks are On the Rise

By December of 2019, Symantec was blocking more than 1.3 million unique web attacks on endpoint machines every day.

And the number is rising.

Web attacks increased by 56% in 2018, and malicious URLs increased from 1 in 6 to 1 in 10, according to Symantec's 2019 Internet Security Threat Report.

The Average Cost of a Small Biz Cyber Attack is $200k

If your business falls victim to a cyberattack, it could cost you an average of $200,000.00, according to Hiscox Cyber Readiness Report.

"Both the cost and frequency of [cyber] attacks have increased markedly compared with a year ago", reports Hiscox.

"For companies in every size bracket, the cost of the biggest incident is now likely to be anything from three-to-18-times what it was only a year ago."

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Small Businesses Struggle to Survive in Wake of Attack

After a cyberattack, 6 out of 10 small businesses close their doors for good within 6  months, according to the National Cyber Security Alliance.

For many of these small business owners, the cost of a cyber attack is the primary reason for going out of business.

No Industry is Immune

Cyber-attacks have risen across all industries, according to Hiscox. Across seven countries (US, Spain, The Netherlands, France, Belgium, Germany, UK) the most heavily targeted industries include:

  • TMT (technology, media, telecom)
  • Government
  • Financial Services

Small Businesses More Likely to be Hit by Email Threats

The percentage of small businesses hit with malicious email trended up in 2018, according to Symantec. 55% of emails received in 2018 were categorized as spam.

Employees of small organizations were more likely to be hit by email threats -- including spam, phishing, and email malware -- than those in large organizations.

Online Payment Risks Increase

Incidents of formjacking -- the use of malicious code to steal credit card details and other information from payment forms on the checkout web pages of eCommerce sites -- trended upwards in 2018.

Symantec data shows that 4,818 unique websites were compromised with formjacking code every month in 2018.

With data from a single credit card being sold for up to $45 on underground markets, just 10 credit cards stolen from compromised websites could result in a yield of up to $2.2 million for cybercriminals each month. The appeal of formjacking for cybercriminals is clear.

Small Retailers at Largest Risk for Online Payment Attacks

While attacks on household names make headlines, Symantec's telemetry shows that it is often small and medium-sized retailers, selling goods ranging from clothing to gardening equipment to medical supplies, that have had formjacking code injected onto their websites.

This is a global problem with the potential to affect any business that accepts payments from customers online.

Attacks on Mobile Devices On the Rise

Your mobile devices are also at risk. During 2018, Symantec blocked an average of 10,573 malicious mobile apps per day, with the most frequently attacked categories being tools, lifestyle, and entertainment apps.

According to Symantec, 1 in 36 mobile devices has high-risk apps installed.

The U.S. was the worst affected by mobile ransomware, accounting for 63% of mobile device malware infections. Managing mobile device security continues to present a challenge for organizations.

If You've Been Targeted Once, You May be Targeted Again

Think surviving a cyberattack is on par with surviving a lightning strike?

You may be surprised to find that the frequency of cyberattacks is also on the rise. And if you've been hit once, you’re likely to be hit again.

Among firms that experienced cyberattacks, reports Hiscox, the proportion reporting four or more incidents is up from 20% to 30%.

Worried about your small businesses' cyber risk? Let the Cyber Liability experts at Aegis Insurance Markets show you how affordable it can be to protect your business against cyberattacks. Get a quote for your small business today.

 

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