Cybersecurity is a major challenge; the scope of IT and digital technologies expanded by leaps and bounds, the issue of protecting the IT systems and its security has not been adequately addressed by SMEs.
“Small Business Cyberattacks Could Prompt the Next Recession” Devin Smith, Eurasia Review
Cyber attacks are so common these days. Terms such as Ransomware, spear phishing, malware, drive‑by attacks, DDoS attacks are all too familiar terms.
Virus and anti-virus are things that we often encounter on a day to day basis. But how far the SME sector is geared for cyber attacks?
According to a report,HISCOX Small Business Cyber Risk Report SMEs “may be more vulnerable to cyber threats than large corporations”.
Economies are increasingly driven by information. Digital technologies play a crucial role in the functioning of today’s global knowledge economy. While the scope of IT and digital technologies expanded by leaps and bounds, the issue of protecting the IT systems and its security has not been adequately addressed by SMEs.
Cybersecurity issues that the SMEs face is indeed a legitimate threat for the small and medium enterprise population. More often SMEs ignore such issues due to lack of awareness, financial resources to expand on it as well as technical skills.
In most cases, micro, small and medium-sized enterprises are very unlikely to have some strategies in place to counter cyber threats. The need for them to focus attention on cybersecurity is a major issue since any kind of attack can have significant financial implications involved.
As per the HISCOX Small Business Cyber Risk Report :
- 47% of small businesses experienced a cyberattack in the past 12 months.
- Out of this 47%, 44% experienced two, three, or four attacks, and eight percent had five or more.
- Only 52% of businesses have a cybersecurity plan.
- The average cost of cybersecurity in a year for small businesses is $34,604.
- 65% of small businesses have failed to act after a cybersecurity incident.
Devin Smith observes that the “Small Business Cyberattacks Could Prompt The Next Recession”. According to him the aggregate of attacks on SMEs continues to cause disruption to business continuity, revenue losses, employee layoffs, and permanent closures, the net negatives could bubble up into the mainstream. This depressive state could certainly hamper consumer confidence, halt risk-taking, slow GDP, and decimate job growth so much so that the next recession will possibly be born”.
The time has come for SMEs to focus on security.