Small-business owners who are not taking cyber security seriously could be in for a big wake-up call very soon as 42 percent of small to medium-sized business owners said they have “lost customers and business partners” due to a data breach and 35 percent of respondents feel their reputation has been negatively affected.
Understand the potential of cyberthreats is imperative for small-business owners who want to protect their data and feel safe storing their critical information on the internet. According to the research, the “proliferation of unstructured data,” “unsecure third parties including cloud providers” and “not knowing where all sensitive data is located” are the three top threats to owners of small firms.
By investing in cyberliability insurance policies, owners at SMBs will have greater confidence in their online process and the security of their data that is so vital to the success of their organizations.
“Although organizations have become more aware of potential threats, they do not seem to accurately perceive the repercussions associated with data breaches,” said Dmitry Shesterin, vice president of product management at Faronics. “Findings indicate that organizations do not understand the full costs and damages they will suffer as a result of a data breach.”
Why are SMBs struggling with cybersecurity?
Taking the easiest or cheapest route to data protection has been something many IT managers have been doing, which can be a big mistake in the long run. The survey found 73 percent of respondents seek out products that are easy to deploy and do not require a lot of maintenance.
“Results indicate that companies tend to seriously underestimate the potential damage to brand and reputation, revealing a great data breach perception gap,” said Dr. Larry Ponemon, chairman and founder of Ponemon Institute. “Misconceptions about the consequences associated with a data breach are preventing organizations from implementing the necessary financial tools, in house-expertise and technologies to achieve cyber readiness.”
Another factor making it difficult for SMBs to have strong cybersecurity practices is that 64 percent of respondents have “insufficient people resources” and employ a staff that aren’t able to properly secure data and information. By adding an employee that has expertise in data protection, owners at SMBs can feel better about the security of their information stored online.
