Majority of SMBs feel ill prepared to defend against cyber attacks

New average cost of each attack estimated at $383,365

Small and mid-sized businesses increasingly face the same cyber security risks as larger companies, but only 28 percent rate their ability to mitigate threats, vulnerabilities, and attacks as “highly effective,” according to a study by the Ponemon Institute.

The report is based on interviews with 1,045 IT and security practitioners from companies in the U.S. and U.K. Respondents represented companies with employees ranging from 100 to 1,000. The number of attacks, including phishing, advanced malware/zero day, and ransomware is rising, with 67 percent of the companies experiencing a cyber-attack and 58 percent experiencing a data breach in the last 12 months.

Yet nearly half of respondents (47 percent) said they have no understanding of how to protect their companies against cyber-attacks. As SMBs become more vulnerable, the risk of employees and contractors causing a data breach or ransomware attack is simultaneously increasing. A majority of businesses surveyed (60 percent) cited a negligent employee or contractor as being the root cause for a breach, compared with 37 percent citing an external hacker.

About one third of respondents (32 percent) said their companies could not determine the root cause of a data breach they had experienced in the past 12 months. Forty percent of respondents said their companies experienced an attack involving the compromise of employees’ passwords in the past year, with the average cost of each attack being $383,365. If you have a changing IT footprint, please contact Citadel to discuss options for any data center, cloud, or other technology solution.

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