News

More than half of small businesses close after a cyber attack

A global cyber security firm has highlighted the catastrophic consequences of a cyber event on small businesses.

24 February 2022

According to the United States Securities and Exchange Commission (SEC), about 60% of SMEs go out of business within six months of a data breach or cyber attack. 

“Cyber security is clearly a concern that the entire business community shares, but it represents an especially pernicious threat to smaller businesses,” an SEC report noted. 

“The reason is simple: small and midsize businesses are not just targets of cybercrime, they are its principal target. Even more disconcerting is the fact that cybercrime represents an existential threat for SMEs.”

Global cyber security group Cimcor noted that data breaches are one of the top concerns for today’s small businesses, with the average breach costing small businesses $US3.62 million ($5 million).

Cimcor CEO Robert Johnson III says one of the best ways for businesses to remain vigilant is to monitor suspicious network activity. 

“Suspicious network activity can refer to a number of different behaviours that involve abnormal access patterns, database activities, file changes, and other out-of-the-ordinary actions that can indicate an attack or data breach,” he said. 

“Being able to recognise these activities is important as it can help pinpoint the source and nature of the breach, allowing you to act quickly to correct the security threat and minimise damage.”

How businesses can secure their data

Cyber training for all staff and a comprehensive security strategy are essential if businesses are to avoid the existential threat of a cyber attack.

Cimcor suggests the following items should be included in your data security strategy: 

• malware protection
• strong password policies
• regular review of network alerts, error reports, performance, and traffic
• installing firewalls
• instructing end users to report suspicious activity
• file integrity monitoring
• regular risk assessments
• incident and failure response strategies.