We live in a technology-dependent world. With its help, businesses are able to be more efficient and productive than ever before. At the same time, however, the more we rely on our IT, the more we put our businesses at risk of a cyberattack. Cyberattacks on small businesses can have dire consequences on a commercial entity’s ability to remain viable.
How Much Does a Data Breach Cost a Company?
Among the many problems businesses face today, cybercrime is one of the fastest growing threats. While you may think this is something that only concerns large corporations, the truth is hackers are just as likely to target small organizations. In fact, statistics from Fundera show that 43% of cyberattacks are against small businesses. This is troubling considering what can happen to a company after it’s network has been breached.
Did you know that the average cost of a data breach for small businesses is about $200,000? This figure comes from a cyber readiness report created by Hiscox. The report also mentions this is a drastic bump up from 2018 when the average cost was closer to $34,000. While this may be pocket change for a large company like Google or Amazon, it’s anything but that for a small business.
The Impact of Data Loss on Business
If you’re an owner of a small company, how would losing $200,000 affect your business? For most small businesses, such an incident would be devastating and could lead to a path of ruin. More often than not, small companies that are hit by a cyberattack are left in a position where they have to consider closing their doors.
Why Are Small Businesses Targeted?
It’s important to remember that every company is at risk of a cyberattack. Even though this is a fact, many smaller-sized businesses don’t take cybersecurity seriously. While your small business may not have as much to offer as a mega corporation, penetrating your network is easier than invading one with multiple layers of protection. Hackers know that many small businesses lack the cybersecurity they need, so they see attacking your network as easy money.
What Do Cybercriminals Want From Small Companies?
There are a few things your company possesses that could be counted as motives. These items include:
- Personal data: Small companies collect data just like large companies do. This can include medical records, credit card information, Social Security numbers, bank account credentials, or proprietary business information. Personal information can be used or sold on the dark web for profit.
- Connection to bigger companies: From transactions to managing supply chains, most businesses are connected digitally in some way. Since larger companies are usually tougher to penetrate, hackers can use smaller partners as a way to get into the systems of large companies. So a hacker may infiltrate your systems and wait quietly until you interact with a bigger company and get to them through you.
- Computing power: Cybercriminals can attack a business in a number of ways for different purposes. For example, a hacker can hijack your computers and IoT devices and use them to create a botnet. A botnet is a number of internet-connected devices that are controlled by a hacker. The hacker can use the bots to carry out massive denial of service (DDoS) attacks.
- Money: Just like with a large company, hacking a small company can provide a source of profit to the cybercriminal. One way they can turn a profit is by infecting your devices with ransomware. This type of malware essentially locks you out of files or even the operating system. The hacker can then demand that you pay a ransom to free your devices. There’s no guarantee that the hacker is going to release your device so it’s always recommended to never pay the fee.
Stay Protected With the Help of Net3 IT
It’s no secret that cyberattacks are becoming more frequent by the year. Protect your network without going over budget with the help of Net3 IT. We work with you to identify vulnerabilities in your IT and provide solutions to close up any gaps. With us by your side, you can rest easy knowing your network is secure.
Contact us today to learn more.
