Despite improvements in preparedness, small businesses in the US remain highly vulnerable to cyber incidents. A recent report indicates that while these businesses paid less to respond to cyber incidents last year, the number of attacks and breaches has increased. The median number of attacks has risen from 3 in 2022 to 4 in 2023, and 41% of small businesses fell victim to a cyber attack in 2023, up from 38% in the previous year and almost double the rate in 2021.
The report, conducted by Hiscox, surveyed over 500 small business professionals and assessed their preparedness to combat cyber incidents. The study is part of a global survey involving over 5,000 professionals responsible for their company’s cyber security strategy. One of the key findings was that although the cost to respond to cyber breaches has decreased, the number of attacks has grown, offsetting the cost reduction.
According to Chris Hojnowski, Vice President and Product Head of Technology and Cyber at Hiscox USA, the rise in cyber attacks is concerning, with 41% being a sizable proportion that isn’t far off from a coin flip of it happening to a business. The report also highlighted the impact of new AI developments, which have made it more challenging to identify phishing emails. Hojnowski emphasized the importance of utilizing AI tools and maintaining constant vigilance to protect small businesses from cyber threats.
He also stressed the need for additional investments in cyber security, training, and insurance, as well as the importance of security awareness training, given that 59% of small businesses do not currently use it. The report revealed that while IT security spending has increased, there are still areas of vulnerability, with 43% of surveyed companies lacking network-based firewalls. Furthermore, the US ranks second for cyber maturity, with 63% of small businesses being intermediates in terms of cyber expertise.
In conclusion, Hiscox’s cyber readiness report for small businesses in the US underscores the ongoing vulnerability of these businesses to cyber incidents and the need for increased investments in cybersecurity, training, and awareness. *Note: The following is a rewrite of the originally provided text. *