Small businesses in the US continue to face significant vulnerabilities when it comes to cyber incidents, despite making efforts to enhance their preparedness. A recent report revealed that although these businesses spent less money in response to cyber incidents in the past year, the frequency of attacks and breaches has surged. The median number of attacks has risen, with 41% of small businesses falling victim to a cyber attack in 2023, marking a noticeable increase from previous years. Chris Hojnowski, vice president and product head of technology and cyber at Hiscox USA, expressed deep concern about the rise in cyber incidents, emphasizing the near 50-50 chance of a small business experiencing a cyber attack.

Hiscox’s survey, which involved over 500 small business professionals, aimed to gauge their readiness to combat cyber incidents. The report also highlighted the increase in cyber ransoms paid by US small businesses over the past 12 months, amounting to over $16,000. Hojnowski noted that while the cost of cyber breaches has marginally decreased, the growing number of attacks has offset these improvements. He also pointed out that new developments in artificial intelligence have made it more challenging to detect phishing emails and emphasized the importance of constant vigilance and AI tools in protecting small business owners.

Despite an increase in IT security spending, the report revealed that there are still areas of vulnerability, particularly in the lack of security awareness training and network-based firewalls. Hiscox’s findings also highlighted the need for additional investments in cyber security, training, and insurance to combat the growing complexity of cyber-attacks. The report’s insights shed light on the cyber readiness of small businesses in the US, revealing both the progress made and the areas that require further improvement.