Damage from cyberattacks can be extensive and expensive!

Business owners (and non-profit organizations too, such as schools, Chambers of Commerce, and social service agencies) must be constantly aware of the threats to the security of their business networks at the hands of cybercriminals – people whose main purpose in life seems to be stealing information and causing disruptions.

Small and mid-sized business owners are sometimes lulled into a false sense of security, believing that they are somehow less susceptible to cyberattacks, because cyber criminals are more interested in the “big fish.”

Actually, statistics show otherwise. 43% of cyberattacks target small businesses. One explanation of that relatively high percentage is that small businesses may not invest in IT protection as much as the bigger companies. Also, smaller businesses may be stretched further with personnel and the day-to-day operation of their businesses or organizations, and do not make IT and cyber protection a top priority, particularly if the business is understaffed. That in turn makes them vulnerable to cyberattacks, including data breaches, phishing attacks and more. Nearly half of all cyberattacks take place on businesses and organizations with fewer than 1,000 employees.

Cyber crime is a rampant problem. It is one of the most significant threats to businesses and organizations. In fact, damage from cyberattacks is estimated at $10.5 trillion globally.

Consider the fallout from cyberattacks. Damage to businesses and organizations can occur in numerous forms, including loss of customer trust, theft of information, legal fees, and compliance costs. Additionally, companies that have been breached are often subject to significant negative media coverage, which can lead to reputational damage, lost business and lost future opportunities. Many companies – small businesses in particular – do not ever fully recovery from a cyber breach.

These damages can result in downtime, a loss of productivity, loss of revenue, and the considerable expense of finding, recovering or rebuilding compromised data systems. Then, too, there are legal fees to consider as well as potential fines, and the cost of emergency IT support and remediation.

A cyberattack can also affect morale at the company, where employees may feel that their employer didn’t protect their personal information. It can additionally make it more difficult in terms of recruiting and retaining talent because of the damage that the company’s reputation has suffered.

Information on various insurance websites, including that of Aligned Insurance point to the serious challenges a small business faces after a cyberattack. Studies show that the cost of such an attack can be as high as $150,000 or more. Consider the hardship of such an expense on a business’s operating budget. And the headaches that follow – which can include the need for forensic investigation (to see if the risk is an ongoing one), customer notification and credit monitoring, and blackmail by cybercriminals in the form of ransom payments – can cripple a business. Some statistics show that 60% of businesses experiencing a severe breach can go out of business within five years.

The severity of this message appears to be resonating with many business owners and organization managers. An IBM article quoted a recent U.S. Chamber of Commerce survey which showed that small businesses do view cyberattacks as the biggest threat to their businesses. Approximately 60% of small businesses rank cybersecurity risks such as phishing and ransomware as major concerns.

And, one daunting statistic is that 90% of cyberattacks can be traced to some form of human error – such as clicking on a suspicious link in an email and inadvertently allowing cybercriminals access to your organization’s infrastructure.

Greater recognition of the threat is a good starting point. With all of this having been said, it’s critical for organizations to be extremely vigilant in protecting their networks—and thereby avoiding potential financial, legal and reputational damage that cyberattacks can cause.

So what can you do to better protect your network?

• Take the threats seriously. Don’t operate under the assumption “it always happens to somebody else.”
• Comprehensive employee training is an excellent and necessary starting point.
• Be certain to stay current on the latest cyber threats and have the latest anti-virus protection
• Change the passwords often on points of access to your network and develop a plan that restricts access to company information to authorized people.
• Be aware of the dangers of having personal devices of employees connected to the network. Protect your data as if it were the company’s lifeblood—because it is.
• Evaluate what your organization is doing for cyber protection. Are you handling it internally? If so, do you have the necessary resources so that monitoring and protecting your network is a priority, as opposed to something that a person does in his/her spare time?
• Have you considered partnering with a cybersecurity partner – an MSP (Managed Services Provider) whose job is to monitor and protect your network? Someone who understands the challenges and threats to networks and has the expertise to stay ahead of these threats?

Don’t take chances on your company’s future. You’ve worked hard to get where you are. Don’t let cybercriminals get the upper hand. Why not have a conversation with a cybersecurity partner who can help you understand the risks and the ways to mitigate them? If you are looking for network protection, or if you just want to have an initial conversation, please visit https://pulsetechnology.com or give us a call at 888-357-4277. We’re here to help!