According to a new study, a majority of small businesses have no protection against cyberattacks, suggesting that businesses and their consumers are vulnerable to hacking and identity theft.
A study from Digital.com, an independent website for small business online tools, products and services, revealed that 51% of small businesses do not have protection against cyberattacks.
Twenty-one percent of the respondents from the survey said they are in the process of developing cybersecurity measures, and 30% of business owners have no measures in place. Additionally, 7% of business owners say they are unsure about their online security status.
The workplace model is a key factor when it comes to cybersecurity. Forty-five percent of businesses with an in-person workforce do not practice cyber safety, according to the study. In comparison, 27% of online only businesses, and 21% of businesses with a hybrid work model have no internet security processes.
Fifty-nine percent of business owners who fail to utilize safety methods say they are too small to be targeted for cybercrime. Respondents also cited other reasons for the lack of security measures, such as limited online business, high cost and no dedicated cybersecurity staff.
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The survey results indicate that the lax attitudes among small business owners could potentially put customers at risk for a data breach. Most of the companies surveyed collected personal information from customers, including names (72%), addresses (66%), and phone numbers (65%).
Respondents also admit to collecting sensitive data that can leave consumers vulnerable to identity theft and fraud. Twenty-six percent of small businesses without digital security measures collect credit card information, 15% store personal bank account information, and 14% have customers’ social security numbers on file.
“Companies of all sizes should take cybersecurity seriously,” small business consultant Dennis Consorte says. “Customer data is valuable, and bad actors will stop at nothing to get it. In fact, they may target SMBs because they have less budget for protecting their customers’ information and are therefore softer targets.”
Twelve percent of the small businesses surveyed have been victims of cyberattacks. As a result, 90% of businesses experienced lost revenue, 24% suffered damage to the company’s reputation, and 16% faced a loss of customers, according to the survey.
Despite the negative consequences, 8% of small businesses that experienced a security compromise made no changes to their practices. Some business owners implemented online safety measures like installing antivirus or antimalware programs, using a Virtual Private Network (VPN), hiring an IT staff or external cybersecurity firm and training staff in cybersecurity best practices.
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