Small and medium-sized enterprises (SMEs) face unique challenges, given the rise of AI and the increasing efficiency of hackers and their tools.
Today's generative AI makes producing grammatically correct phishing messages more accessible than ever, and social engineering is more effective. In contrast, the growing shortage of cyber skills in enterprises is increasing, with few employees prepared to prevent or respond to cyber-attacks.
The worst news is that the costs associated with a security breach are increasing, making it more difficult to recover financially after an effective attack.
A recent study indicates that the average worldwide cost of data breaches increased by 10% over the previous year, reaching $4.88 million. With numbers like these, many companies cannot survive after a security breach.
Why has the global average cost of data breaches increased?
- Costs of implementing a response plan.
- Excessive costs for operational downtime.
- Higher fines.
- Loss of customers.
- Loss of prestige.
- Etc.
SMEs as a Prime Target
Large corporations often grab headlines regarding massive cyberattacks, but SMEs are more common targets for cybercriminals. According to a recent report, over 60% of small and medium-sized businesses that suffer a cyberattack close their doors within six months. These attacks range from data breaches to hacks that completely paralyze business operations.
The Devastating Impact of a Security Breach
Cybersecurity is not just an IT issue; it is a matter of survival. A single incident can result in the loss of critical data, customer trust, and the company's financial viability. Costs include technical repairs, regulatory fines, lost revenue, and public relations costs. These costs can devastate SMEs, which often operate on narrow profit margins.
Why Many SMBs Fail to Survive
Even at the lowest level, the security breach costs are estimated to start at $200,000, a figure many small businesses cannot absorb. Furthermore, unlike large corporations, SMBs often need more resources to implement robust security measures and are more prepared to respond effectively to an attack. The lack of an incident response plan and the absence of cyber insurance further exacerbates the situation.
How to Protect Your Business
The key is to invest in cybersecurity before an attack occurs. This includes implementing measures such as advanced firewalls, data encryption, and ongoing employee training in security practices. Additionally, having a well-defined incident response plan and cyber insurance can differentiate survival and failure.
Internal training is critical
Attacks by negligent internal users are the costliest, with an average of $4.99 million being a figure to consider in January. Action must be taken on all fronts – business email, phishing, social engineering, and stolen or compromised credentials are the favorite channels for attack – an adequately trained internal team will not deliberately expose security or finances.
Take control, and do not expose your company to risk
Remember to consider the risk of cybercrime. Your company does not have to be just another statistic. Consult expert cybersecurity advisors to develop a robust strategy that protects your business and allows you to focus on what matters: growing your company.
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Source:
IBM Corporation 2024. Cost of Data Breach Report 2024, Available at: https://www.ibm.com/reports/data-breach
Credits:
Writer: Ben Rodriguez
Editor: Luis Vinay
Technical reviewer: Luis Vinay
Illustrator: Dai Fiorenza