Despite improvements in preparedness, US small businesses remain highly vulnerable to cyber incidents. According to a recent report, while these businesses paid less to respond to cyber incidents last year, they experienced an increase in attacks and breaches, with the median number of attacks rising from 3 in 2022 to 4 in 2023.
The report also revealed that 41% of small businesses fell victim to a cyber attack in 2023, up from 38% in 2022 and nearly double from 22% in 2021. In the past 12 months, US small businesses paid over $16,000 in cyber ransoms.
The rise in cyber incidents is concerning, as it indicates a high risk for businesses. The report, conducted by Hiscox, involved polling over 500 US small business professionals to assess their preparedness to combat cyber incidents.
This was part of a global survey involving over 5,000 professionals responsible for their company’s cyber security strategy. One key finding was that while the cost of cyber incidents decreased slightly year over year, the number of attacks has grown, creating a financial offset.
New artificial intelligence (AI) developments have also made it harder to spot phishing emails, undermining previously reliable methods of detection. However, the use of AI tools and constant vigilance can help small business owners in protecting themselves.
Investments in cyber security, training, and insurance are also essential, given the growing complexity of cyber attacks. Despite an increase in IT security spending, areas of vulnerability still exist.
The report highlighted that a significant portion of small businesses do not use security awareness training or network-based firewalls, indicating the need for better training and infrastructure. Additionally, the report revealed that the US ranks second for cyber maturity and that only 4% of small businesses are considered cyber experts.
In conclusion, Hiscox’s cyber readiness report for small businesses in the US raises pressing concerns about the vulnerability of these businesses to cyber incidents. The report underscores the need for increased awareness, investment, and training to strengthen their cyber defenses.
Please share your thoughts on Hiscox’s cyber readiness report for small businesses in the US.