How Much Would a Cyber Attack Cost Your Small Business?

In today’s day, hearing about data breaches is part of our everyday lives. In the first six months of 2019, hackers exposed over 4.1 billion records via data breach — not including unreported or undiscovered ones. Cyber-crime is the fastest growing form of criminal activity in the world. Chances are, either you or someone you know were victims of this villainy. Individuals are not cyber-criminals’ first choice, small businesses are. 

Forty-three percent of small firms are victims of cyber-attack, yet only 14% are prepared. According to Accenture, in the next five years, these activities will cost businesses $5.2 trillion worldwide. 

Modernization increased our internet dependency, causing more vulnerability to cyber-attacks. Because of the regularity of these crimes, business owners should no longer consider the possibility of an attack, but rather prepare for one.  

The Keeper Security’s 2019 SMB Cyberthreat Study shows that 66% of decision-makers at small corporations believe they are an unlike target for online criminals — six in ten have no action plan in place in case of an attack. 

The consequences of cyberattacks are growing, on average, incidents cost firms $200,000. Hiscox, an insurance carrier, confirms that sixty percent go out of business inside six months of being attacked. The regularity of these attacks is rapidly surging. More than half of small firms encountered a breach within the finished year; with four in ten experiencing multiple incidents. 

Justin Fier, director of cyber-intelligence and analytics at cyber-defense firm Darktrace, says that it takes about 101 days before the detection of malware. That gives cyber-criminals enough time to access to information to basically know your entire life. 

For corporations, malware infection is substantially more damaging. Companies, such as Facebook and Equifax, fell victims of cybercrimes. Even with innovative technology, and a solid IT department, it took them months to find the breach — criminals had more than enough time to harvest sensitive information. 

On average, it takes 101 days before a malware is detected. That is enough time for cyber-criminals access all the information they want. 

Last September, Door Dash, a food delivery start-up, reported a massive breach, jeopardizing the data of over 4.9 million customers, and employees. Similarly, the president of Miracle Systems, a Virginia-based US government contractor, affirmed that a cyber-attack took place costing the company between $500,000 to $1,000,000. 

The damage goes beyond monetary. Intangible assets, such as brand reputation and customer trust, are devastating to a corporation. Miracle Systems and its clients later learned that their data was up for sale for a starting price of $60,000. 

Note that cyber-criminals, most of the time, are not penetrating firewalls, but people are allowing them in. Though hackers introduce about four hundred eighty new threats every minute, McAfee says that human error accounts for 95 percent of the security breaches. Yet, businesses do not consider cyber-security a major issue.

Experts advise businesses to adopt a mix of high- and low-tech strategies to combat cyber threats. 

Back-ups: Make daily back-up and duplicates of data files that can be retrieved. In the event of a system compromise or ransomware, you can easily access those files. 

Updates: Installing and regularly updating network firewall and antivirus. Also, information encryption tools can scan for counteract viruses and other harmful programs, while keeping sensitive information safe. 

Scan: Regularly scanning devices that connect to your computer system or network. Prohibit the use of removable media in those computers. 

Accessibility: Limiting access to folders, files, and applications to employees who need them for their on-the-job duties. 

Training: Regularly provide training on the latest threats and trends in cyber-crime to employees. 

Instruct: Instructing staff about the danger of clicking on unsolicited emails and opening attachments. Stay alert for signs of fraudulent emails.

Authentication: Using two-factor authentication before allowing major changes, or uncommon or irregular time-sensitive request.

Assess: Conducting risk-assessments on computer networks and applications to check for failure.

AI: Implementing artificially intelligent cyber analytics tools to scan user accounts, networks, and applications to determine normal behavior, while detecting and stopping suspicious activities. 

Most small businesses don’t have the means to regularly update applications or invest in encrypting data software. If your company processes or handle sensitive information, experts highly recommend you to purchase cyber liability insurance. When your firm falls victim to an attack, it becomes vulnerable to expensive settlement and legal fees. 

Cyber liability insurance protects your digital assets by transferring some risks of a cyber attack. This insurance will offset the financial impact of a business interruption caused by a cyber-criminal. With this insurance, it does not mean you ignore data security and protection procedures, it will simply help minimize the damage in case of an incident. 

Several insurance companies offer these types of policies. CoverWallet is a reliable company that can offer your business affordable options.