Data Breaches Force 10% of Small Company Victims Out of Business

Cyber incidents are an existential threat for small businesses. This US study reinforces the case for preparing for a breach, data loss etc…:

Cyberattacks are among the most dangerous threats for small businesses, with 25% of affected organizations filing for bankruptcy and 10% going out of business entirely, according to a new survey.

The Zogby Analytics survey, commissioned by the National Cyber Security Alliance, also concluded that 88% of small companies believe they are a likely target for attacks and only 46% feel ready to face one. More than 1,000 cybersecurity decision-makers from small businesses responded to the survey.

“Consistent with that, almost two-thirds (62%) report that cyber security is a high priority for their business,” says the survey. “Concern about cyber security is especially strong among larger companies – cyber security is a high priority for 72% of businesses with 251-500 employees and for 39% of businesses with 1-10 employees.”

28% of respondents said their businesses suffered a data breach in the past 12 months. The numbers also show that the larger the company, the more likely a data breach is. 11% of affected companies had 1-10 employees, and organizations with 251-500 employees accounted for 44% of the incidents.

The study also concludes that the vast majority of companies are well aware of the threat posed by cybercriminals. More than 50% of the organizations reported they have a plan in place in case of a data breach.

A recent IMB study calculated the average cost of a data breach at $3.92 million, explaining why some smaller companies would have to declare bankruptcy or go out of business.

Original article here