SMB Data Breaches: Will They Ever Slow Down?

In previous years, many small and medium-sized businesses (SMBs) believed they were too small to attract cybercriminals, leading them to neglect cybersecurity. However, as larger companies strengthened their cybersecurity, cybercriminals turned their attention to easier targets: SMBs.

This article presents statistics on the rise of SMB data breaches, examines the reasons behind this increase, and suggests strategies for reducing risk.

The Rising Tide of SMB Data Breaches

Statistics reveal a troubling increase in data breaches among SMBs, with no indication of this trend slowing. The frequency and severity of these breaches are alarming, with many SMBs at risk of shutting down if attacked.

• 46% of all data breaches affect businesses with fewer than 1,000 employees.
• 95% of cybersecurity incidents at SMEs cost between $826 and $653,587.
• 51% of small businesses have no cybersecurity measures in place.
• 83% of U.S. SMEs are not financially prepared to recover from a cyberattack.
• 60% of SMBs close within six months of a data breach.

The Root Causes

Understanding why SMB data breaches are increasing can help develop better protection strategies.

• Perceived Vulnerability: Cybercriminals see SMBs as easier targets due to weaker security and limited resources.
• Low Priority: Cybersecurity often takes a back seat to other business needs, resulting in inadequate protection.
• Expanding Attack Surface: Digital transformation and the adoption of new technologies increase SMBs’ exposure to cyber threats.
• Valuable Data: SMBs store sensitive information, making them attractive targets for financial exploitation.
• Supply Chain Attacks: Cybercriminals use SMBs as entry points to larger networks by compromising smaller partners.
• Advanced Threats: Increasingly sophisticated cyber threats make it harder for SMEs to defend themselves.

Reducing SMB Data Breaches

Although data breaches will likely continue, SMBs can take steps to mitigate their risk.

• Prioritize Cybersecurity: Treat cybersecurity as a crucial business concern. Leadership should integrate it into strategic planning to strengthen defences and ensure business resilience.
• Outsource to MSPs: Managed Service Providers (MSPs) can offer expert cybersecurity solutions tailored to SME needs, enhancing overall security.
• Implement Multi-Layered Security: Basic measures like firewalls and endpoint protections aren’t enough. Digital Risk Assessments can add extra layers of security.
• Employee Training: Regular training on cybersecurity best practices and awareness can reduce human error, a common cause of breaches.
• Regular Updates and Patch Management: Keep systems up-to-date with security patches to mitigate vulnerabilities.
• Incident Response Planning: Have a clear plan for responding to breaches, including roles, communication protocols, and recovery steps.

Conclusion

While achieving a world entirely free from data breaches may remain an elusive goal, there are options for SMBs to lessen the likelihood of experiencing a breach. By prioritizing cybersecurity and taking a multi-layer approach, SMBs can reduce their risk, avoid costly incidents,  preserve their reputation, and continue to grow their business. At the end of the day, the organizations that are most at risk are those that do not take the steps to protect themselves – regardless of size or industry.