Nowadays, cybersecurity is an important part of doing business, and small businesses are no different. Businesses face more and more threats in the digital world as technology keeps getting better.
To protect their valuable data and assets, small businesses need to keep up with the latest cyber security statistics and trends. Putting in place strong security measures and teaching employees the best ways to do things can help lower risks and stop possible cyberattacks.
This article will look at the key cyber security statistics that every small business needs to know in 2024.
Small Business Cyber Security Statistics in 2024
The cybersecurity landscape for small businesses is constantly changing, and understanding the current situation is critical for implementing effective safeguards. According to recent studies by the Australian Cyber Security Centre (ACSC), small businesses will remain prime targets for cyberattacks.
Statistics show the vulnerability of small businesses to cyber attacks. Here are some key statistics uncovered by those studies.
Key Statistics:
- 62% of small businesses have been victims of cyber attacks.
- 1 in 5 small and medium-sized business (SMB) owners do not even know the term “phishing.”
- Almost half of SMBs had their cyber security understanding as ‘average’ or ‘below-average’
- Almost half of SMBs reported spending less than $500 on cyber security per year.
- 80% of them rated cyber security as ‘important’ or’very important.
ACSC’s survey included 1763 respondents from small and medium-sized business owners. They cite the Australian Bureau of Statistics, which defines SMBs as businesses with 1 to 199 employees.
The Current State of Small Business Cyber Security Preparedness
Despite the growing threat landscape, the readiness of small businesses to combat cyber attacks remains a concern. Many small enterprises lack the necessary resources and expertise to implement robust cybersecurity measures, making them susceptible to various threats.
According to the ACSC, there are at least four factors that become a barrier for small businesses to implement good cyber security practices, which are:
- Lack of dedicated IT staff
- Complexity and self-eficacy
- Planning and responding
- Underestimating risk
The lack of dedicated IT staff is one of the most significant challenges that most small businesses face when dealing with cyber attacks. As we can see from the key statistics above, small businesses spend less than $500 per year on cyber security. This suggests that small businesses may not prioritise cybersecurity due to financial constraints, increasing their vulnerability to cyber threats.
The next thing that has become a cybersecurity problem for a small business is how much they know about it. Some important numbers show that almost half of them didn’t know much about cybersecurity. That’s why it can be hard for small businesses to make a cybersecurity plan or even just figure out where they are weak. If you want to learn more about that, you might want to read our article about how to make a cybersecurity plan for your small business.
The final point is about underestimating the risk. While 80% of them believed cybersecurity was important, their actions do not reflect this. Aside from the amount of money they spend on cybersecurity, other data show that 97% of sole traders (small businesses with one employee) prefer to handle cybersecurity themselves. On the other hand, only 41% of medium-sized businesses (20–199 employees) choose to outsource their cyber security needs.
That data suggests that there is a disconnect between the perceived importance of cybersecurity and the actions taken by small businesses to protect themselves. This highlights the need for more education and awareness in the small business community regarding cybersecurity best practices.
But that doesn’t mean it’s bad to handle your own cybersecurity. You just need to find out more about the subject. If you choose to handle things yourself, you can read our article on how to make a cyber security plan for a small business.
The Importance of Cybersecurity for Small Businesses
You can’t say enough about how important cybersecurity is for small businesses. Strong cybersecurity does more than just keep sensitive data safe; it also helps the business stay healthy and grow.
- Data Protection: Safeguarding customer information and intellectual property.
- Operational Continuity: Ensuring uninterrupted business operations despite cyber threats.
- Reputation Management: Building and maintaining trust with customers and partners.
- Regulatory Compliance: Adhering to industry-specific regulations and legal requirements.
Putting money into cybersecurity can also help small businesses avoid data breaches that cost a lot of money and could lead to legal trouble. Small businesses that prioritise cybersecurity can demonstrate their commitment to protecting their customers and their own reputation.
Implementing strong cybersecurity measures can also help small businesses attract new customers and partners who value data security. It also allows businesses to remain competitive in the market by demonstrating that they take the protection of sensitive information seriously.
Cost of Cyber Attack Statistics
Cyberattacks can result in financial losses, damage to reputation, and even the closure of a business. Investing in cybersecurity measures can help mitigate these risks and protect the long-term success of a small business. There are several studies that point out some of the cost of cyber attack statistics; here are some of them.
In 2021,
- Verizon discovered that personal data was stolen in 45% of all breaches in 2021.
- IBM found that in 2021, the average cost of a data breach was a huge $4.24 million.
- IBM also found that it took 212 days on average to find out about the data In 2021,In 2021, it took the average company 286 days to find and stop a breach. In 2021,
Financial Impact Statistics:
- The average cost of a cyber attack for a small business is $200,000.
- 60% of small businesses that experience a cyber attack go out of business within six months.
- Recovering from a ransomware attack costs small businesses an average of $50,000.
These numbers show that cyberattacks on small businesses have real, and often disastrous, financial effects. Putting money into cybersecurity isn’t just a safety measure; it’s a smart move that will help the business grow.
Conclusion
To sum up, the cyber threat landscape for small businesses is always changing and getting worse. The numbers make it clear how hard it is for small businesses to protect themselves from cyberattacks. Companies in these industries need to understand how important cybersecurity is, set aside enough resources, and take action to protect their assets, operations, and reputation.
Protecting your company’s data from cyber threats requires experts in cybersecurity to assess vulnerabilities and implement necessary measures. That’s why, at some point, you may require assistance from IT professionals, such as Nexa Lab security hardening services.
We provide a wide range of cyber security services, including vulnerability assessments, application security enhancements, incident response planning, custom security strategies, access control and authentication, and security awareness training.
Nexa Lab was founded and established in Australia, with over 30 years of experience in the MSP and IT industries. With a commitment to cybersecurity, we prioritise protecting Australian businesses’ digital assets and sensitive data.
