Majority of small businesses ‘fail to act’ after cyber event

By Erin Ayers on June 22, 2018

As the scope of cyberattacks gets bigger and bolder, the potential targets get smaller – in terms of business size. A new report from Hiscox shows that nearly half of all small businesses in the United States have experienced a cyber event.

“Forty‑seven percent of small businesses suffered at least one cyberattack in the past 12 months. Of those, 44 percent experienced two, three, or four attacks in the past year, and eight percent had five or more attacks,” said Hiscox in the report.

“Business owners and executives ranked a cyberattack as one of the top two concerns for their business, along with fraud. Sixty‑six percent of small businesses said they were concerned or very concerned about cyber risk. Yet the vast majority haven’t taken the basic steps to prepare.”

For small businesses, cyber events don’t come cheap — the average direct cost of cyber events in a 12-month period for respondents was $34,604, according to the report. This number doesn’t take into account the hidden costs of cyberattacks, like lost customers or brand damage, Hiscox warned.'

Erin is the managing editor of Advisen’s Front Page News. She has been covering property-casualty insurance since 2000. Previously, Erin served as editor-in-chief of The Standard, New England’s Insurance Weekly. Erin is based in Boston, Mass. Contact Erin at [email protected].