In today’s digital world, small businesses are increasingly targeted by cybercriminals. However, many small business owners are unaware of the risks or are unprepared to handle them. Understanding the current cybersecurity landscape is essential for any business looking to protect its data, operations, and customers. In this post, we’ve compiled key statistics that highlight the growing threat of cyberattacks on small businesses and the importance of being prepared.
Cyberattacks on Small Businesses: An Urgent Concern
Small businesses are not immune to cyberattacks. In fact, they are often targeted more than larger enterprises.
- 46% of all cyber breaches affect businesses with fewer than 1,000 employees.
- 61% of SMBs were the target of a cyberattack in 2021.
- Malware is the most common type of attack, affecting 18% of small businesses.
- 82% of ransomware attacks in 2021 targeted companies with fewer than 1,000 employees.
- 37% of companies hit by ransomware had fewer than 100 employees.
These statistics highlight the alarming reality: small businesses are prime targets for cybercriminals, and many lack the necessary defenses to avoid attacks.
The Cost of Cyberattacks on Small Businesses
The financial impact of cyberattacks on small businesses is severe, with many companies suffering from lost data, downtime, and financial loss.
- 55% of consumers say they would be less likely to continue doing business with a company that has experienced a breach.
- The cost of cybersecurity incidents for small businesses ranges from $826 to $653,587, with the average business facing substantial financial setbacks.
- 51% of small businesses reported that their website was down for 8-24 hours after an attack.
- In 2020 alone, small businesses experienced over 700,000 attacks, resulting in $2.8 billion in damages.
- Nearly 40% of small businesses reported losing crucial data as a result of a cyberattack.
- 51% of small businesses affected by ransomware paid the ransom.
For many small businesses, the financial cost of a cyberattack can be devastating, especially without proper protection.
Small Business Preparedness: Are You Ready?
Despite the clear risks, many small businesses are not adequately prepared for cyberattacks.
- 47% of businesses with fewer than 50 employees have no cybersecurity budget.
- 51% of small businesses have no cybersecurity measures in place at all.
- 36% of small business owners are “not at all concerned” about cyberattacks.
- 59% of small business owners without cybersecurity measures believe their business is too small to be targeted.
- Only 17% of small businesses use encryption for their data.
- 20% of small businesses have implemented multi-factor authentication (MFA).
Unfortunately, many small business owners underestimate the risks, thinking they are too small to be targeted. But with cyberattacks increasingly common, this approach leaves businesses vulnerable to serious consequences.
Small Business Response & Defense: What’s Being Done?
Though some small businesses are unprepared, many are starting to take action to improve their cybersecurity posture.
- 42% of small businesses have updated their cybersecurity plans since the COVID-19 pandemic.
- Nearly half of small businesses spend less than $1,500 per month on cybersecurity.
- 22% of small businesses increased their cybersecurity spending in 2021.
- Antivirus software (58%), firewalls (49%), VPNs (44%), and password management (39%) are the top four cybersecurity tools being adopted by SMBs.
The good news is that many small businesses are beginning to recognize the importance of cybersecurity and are investing in tools and services to protect their networks, data, and customers.
Conclusion: Taking Action to Protect Your Business
Small businesses are under constant threat from cybercriminals, and the cost of an attack can be severe. However, many small businesses are still unprepared, leaving themselves vulnerable to devastating breaches.
If you own a small business, now is the time to take action. Start by assessing your current cybersecurity measures, training employees on security best practices, and investing in robust security tools like firewalls, encryption, and multi-factor authentication. Cybersecurity is not just a luxury for large enterprises—it’s a necessity for every small business looking to thrive in the digital age.
For more information on securing your business, or to learn how LANConnect can help safeguard your data and network, contact us today at 888-907-6080 or visit www.LANConnectSystems.com.
