Cyber Criminals Love to Target Small Businesses

How Your Business Can Avoid A $400,000 Cyber Attack

Cyber attacks on major companies are enough to scare the daylights out of any business owner. They are seriously bad. I want to discuss the threat of cyber attacks on SMEs (Small and Medium Enterprises). If you are not adequately insured against such attacks, the effects can be devastating.

Despite always hearing about larger companies being compromised in the media, the organizations responsible for these hacks have begun to turn their attention to smaller targets.  Smaller companies are easier targets because the Bad Guys know that SME leadership believe their companies are “flying under the radar.”  They’re too small to be noticed.

Why don’t SMEs Think They are at Risk?

Attacks to smaller companies are not the juicy story the media wants to report on.  These frequent incidents simply go unnoticed by the public leading to SMEs’ belief that “it will never happen to me”.  At the same time, attacking a small to medium company is relatively low risk for the bad guys.  Additionally with the increased implementation of digital processes by SMEs, the ability for cyber criminals to apply their breach is easier and anonymous.

Higher Frequency of Attacks to SMEs Can be Catastrophic

There are many statistics regarding the cost of recovering from an attack.  Chubb Insurance noted the average cost is $400,000 per incident.  This expense is the result of notifying your customers, potentially paying damages, and even PR costs to repair your reputation.  An FBI report said the number of claims since 2016 has increased to 4,000 events every day and new numbers only increase.  Likelihood and severity is only going up.

What Should I Do to Protect my Assets?

These may be terrifying statistics but there are things you can do.

Make sure you have a response plan.

Educate your employees!

Have a Cyber Agreement for your employees to sign.

Make Regular updates to your software programs.

Make sure you have good antivirus software or an expert to maintain your system.

Last but not least, make sure you have Cyber Liability Insurance!

This isn’t the easiest threat to comprehend because it’s invisible.  Everyone can picture a structure fire or a car wreck, but cyber crimes are quick, quiet, and could go unnoticed for a long time.  Despite all of this, protection is not that complicated.  This is simply a reality and a necessity in today’s world.  I’m Bill Bolton, president of BB Insurance Co. I can help you defend against such attacks.