Small Business & Cybersecurity & Vulnerability

The business insurer, Embroker just completed its annual cyber risk index. The results spell trouble for small businesses. The Embroker 2023 Cyber Risk Index found a high percentage of small businesses do not believe they are targets for cyberattacks.

The index found 48% do not believe they will face a data breach or a ransomware attack. At the same time, 79% of the small businesses surveyed admitted to experiencing a cyber attack. That’s up from 67% in 2022.

That statement makes more sense when you break the numbers down.

• 40% of companies in the early stages of development think an attack is somewhat or extremely likely
• 56% of companies with Series A&B funding think an attack is likely
• 72% believe an attack is very likely

A different study done by Accenture found close to 45% of cyberattacks were aimed at small and medium-sized businesses. The average cyberattack — depending on the size, scope and type of attack — costs between $826 and $653,587.

Embroker’s study finds the founders of small businesses are growing more educated about all things cyber by the day.

• 47% said it gave them the necessary services to respond to an attack
• 43% said it made it easier for them to secure funding to start the business or keep it going in the early stages
• 39% said it helps comply with federal regulations

Unfortunately, there’s the issue of affordability.

• 36% say they want cyber insurance but cannot afford it
• The good news is that’s an 8% difference from the 44% in the 2022 survey
• 16% still claim it’s not necessary
• That, too, is down from 32% found in the 2022 survey

Source link: Digital Insurance — https://bit.ly/3QrbkVi