Are small businesses vulnerable to cyber attacks? (2023)

What companies are most vulnerable to cyber attacks?

The healthcare industry is particularly vulnerable to cyber attacks due to the wealth of Personal Identifiable Information (PII) their systems store. When PII is loose in the wild, identity theft occurs. In fact, nearly half of all U.S. citizens became a victim of some form of identity theft in 2020.

According to Accenture's Cost of Cybercrime Study, 43% of cyber attacks are aimed at small businesses, but only 14% are prepared to defend themselves.

Small businesses are low-hanging fruit

While the headlines focus on major security breaches at major companies, small and medium sized businesses are actually the more common victims of cyber attacks. In fact, 43% of cyberattacks are aimed at small businesses according to Verizon.

Small businesses are more likely to be targeted by cyberattacks. For smaller companies, the problem stems from a lack of assets and expertise. Small and medium-sized businesses usually don't have dedicated cybersecurity experts to keep their systems secure.

While the news reports more big companies being hacked, it's really the small businesses that are attacked more frequently. According to the Cybersecurity Magazine, 1 in 5 small to medium businesses is hacked each year.

Broadband and information technology are powerful factors in small businesses reaching new markets and increasing productivity and efficiency. However, businesses need a cybersecurity strategy to protect their own business, their customers, and their data from growing cybersecurity threats.

You may think cyber security is only for large multinational businesses, but it's vital for all businesses. Perhaps you have an online shop, collect data from your customers, or take online payments and store credit card details. All this information is vulnerable to cyber attacks and data breaches.

1. 46% of all cyber breaches impact businesses with fewer than 1,000 employees. 2. 61% of SMBs were the target of a Cyberattack in 2021.

What type of organizations do hackers target the most?

Some hackers target private-sector companies that are typically more cash-rich than public-sector organizations. Hackers launch spear-phishing or direct network intrusion to carry out a multitude of cyberattacks such as fraud or blackmail operations.

Failure To Innovate

He said, “The biggest risk companies face in 2022 is failure to keep innovating. Even the most successful company that owns the market share in its industry will run into problems if it coasts on its achievements.

1) Phishing Attacks

The biggest, most damaging and most widespread threat facing small businesses is phishing attacks. Phishing accounts for 90% of all breaches that organizations face, they've grown 65% over the last year, and they account for over $12 billion in business losses.

The biggest security vulnerability in any organization is its own employees. Whether it's the result of intentional malfeasance or an accident, most data breaches can be traced back to a person within the organization that was breached. For example, employees may abuse their access privileges for personal gain.

“Small businesses often have fewer resources and lack security expertise, which leaves them more vulnerable to spear-phishing attacks, and cybercriminals are taking advantage,” said Don MacLennan, Barracuda's senior vice president of engineering and product management email protection.

Four in ten businesses (39%) and a quarter of charities (26%) report having experienced cyber security breaches or attacks in the last 12 months. Sectors that are at increased risk of cyber crime include banking and financial companies, healthcare and hospitality providers, legal firms and small businesses.

What percent of small businesses have no cybersecurity protection?

Meanwhile, a recent survey by UpCity, a Chicago-based business service provider, found that only 50% of U.S. small businesses have a cybersecurity plan in place for 2022.

Most businesses will spend $3 to $6 monthly per user on an email protection service with basic security features. So, for example, a company with 250 employees would need to budget around $1,125 each month just for email protection services.

The Human Factor

So, it is common for employees to increase their digital footprint without being aware of the risks involved. We hear this repeatedly: “Humans are the weakest link in cybersecurity.” This negative characterization of human nature is deeply ingrained in the cybersecurity industry.

An IT support service for businesses helps you maintain confidential data and set up security. This is beneficial for fighting off computer viruses and hackers. IT support services also help your business run smoothly. There is nothing more important than that for a small business just getting started in your industry.

Data from the BLS shows that approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. Only 25% of new businesses make it to 15 years or more.

Huge corporations can account for a 2% “shrink rate,” or theft, when counting inventory, because they make big margins on their products. But when you steal from a small business, that's money out of our own personal pocket. It's personal, and it hurts – both financially and emotionally.

Americans trust small businesses more than any other institution — including the military, the police and the medical system.

What do hackers want the most?

Stolen personal information is fuel for identity theft

Many online services require users to fill in personal details such as full name, home address and credit card number. Criminals steal this data from online accounts to commit identity theft, such as using the victim's credit card or taking loans in their name.

Financial Institutions: It may seem obvious, but hackers often target financial institutions in hopes of exposing personal information, such as Social Security numbers, or gaining fraudulent access to financial services, such as credit cards.

The goal might be financial gain, disrupting a competitor or enemy, or theft of valuable data or intellectual property. Their clients might be nation-states, companies interested in corporate espionage, or other criminal groups looking to resell what the hackers steal.

Small and medium-sized businesses face many of the same risks as large firms, but they often lack the financial and logistical resources of their larger counterparts. As a result, the biggest challenge for small businesses is managing the risks they face with the limited resources available to them.

What are the top 10 biggest cyber threats to organizations?

Small and medium business are the top target for cyberattacks. Unlike large corporations who have the money and resources to pay for cybersecurity and upgrade their network match the latest hacker tricks, small businesses do not have that same luxury" and hackers know it.

must read. Over half of ransomware attacks are targeting one of three industries; banking, utilities and retail, according to analysis by cybersecurity researchers – but they've also warned that all industries are at risk from attacks.

Ransomware

Ransomware is considered to be one of the biggest cyber security threats in 2022 and poses a serious cyber threat to businesses of all sizes. Ransomware attacks work by infecting your network and locking down your data and computer systems until a ransom is paid to the hacker.

70% of digital attacks on financial and insurance firms target banks. 16% attack insurance organizations. 14% attack other financial businesses.

The biggest security vulnerability in any organization is its own employees. Whether it's the result of intentional malfeasance or an accident, most data breaches can be traced back to a person within the organization that was breached. For example, employees may abuse their access privileges for personal gain.

What kind of companies need cybersecurity?

1. Password Security. One of the most common ways cybercriminals gain access to business systems is by stealing passwords. If your passwords are not well-secured, hackers will be able to easily break into your systems.