Over 50000 UK SMEs Could Collapse Following Cyber-Attack

The problem with articles like this is that there’s no frame of reference to say that cybersecurity is the top issue for SME’s to focus on. The World Economic Forum rates cyber as one of the top issues but I’m unsure if that translates into action for an SME. As a comparison, I’d like to see how many of those businesses could survive if their bank account was victim to a bank fraud attack, or if they lost their top three customers…:

Tens of thousands of UK SMEs could collapse following a serious cyber-incident which impacts their ability to trade, according to new research from Gallagher.

The insurance and risk management giant polled 1120 senior decision makers from UK firms with up to 250 employees, in order to better understand the cyber-threat.

It found that 1.4 million businesses were hit by major attacks last year, costing them a combined £8.8bn. Nearly a quarter (24%) of firms were affected by one of these “crisis” incidents — a 5% increase on the previous year.

Although the average cost of attacks to the affected business was around £6400, 17% of responding SMEs said they were forced to spend £10,000 or more, while nearly one in 10 (9%) paid out in excess of £20,000.

However, the impact of an attack could be far more serious than being forced to pay a few thousand pounds in related costs.

A quarter of SMEs (23%) told Gallagher they’d survive for less than a month if a crisis meant they were unable to trade. The insurer estimated that 57,000 UK SMEs could be at risk of collapse this year if hit by such an attack.

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Original article here