50% of SMEs think investment in cybersecurity negatively impacts profits but a cyber-attack can be far more damaging

Many SMEs are holding off from investing in cybersecurity due to possible negative impacts to their profits, putting them at risk from cyber-attacks.

According to Webroot’s ‘Size Does Matter’ report, 50% of surveyed businesses believe that investing in cybersecurity is eating into their profits.

However, with 48% of the SMEs surveyed saying they suffered a breach in the last 12 months, the need to keep investing in cybersecurity has never been higher. This statistic also has an impact on larger organisations, as 70% of those SMEs who were breached said they were used as an entry point into larger enterprises further highlighting the importance of securing supply chains.

It’ll cost you more in the long run

Businesses have a choice between maximising their profits in the short term or making themselves as cyber secure as possible in the long run, after all, the consequences of suffering a breach can be very costly and not just from a financial perspective.   

Reputational damage

Suffering a breach can negatively impact a business’s reputation. A loss of confidence amongst current and potential customers can result in long term negative consequences for a business such as financial losses and even closure.  

Damaged relationships

The Webroot’s report highlights just how damaging a cyber attack can be to a smaller business. 48% of the businesses questioned said that relationships had suffered as the result of a cyber-attack. 22% of those companies that had suffered a breach said that they had lost supplier contracts.  

Financial losses

The financial cost of a cyber-attack can already be substantial but with the new GDPR and NIS directives recently coming into force, large fines can be imposed if a breach is proven to have been the result of inadequate defences and policies. The Webroot’s report showed that almost half of SMEs in the UK believe a cyber attack would put their business at risk of closure.

Loss of business

Data has shown that consumers are becoming increasingly picky when it comes to businesses and how they protect their data. Ping Identity’s 2018 Consumer Survey: Attitudes and Behaviour in a Post Breach Era show that 78% of consumers would stop engaging with the brand online, and 36% said they would stop engaging with a brand completely.

Affordable security

With political and economic concerns restraining budgets a business needs to find cost-effective and affordable cybersecurity (yes, it does exist!). A business can dramatically reduce cyber threats via schemes such as Cyber Essentials Plus.

 CyberScore™ for example, is a highly affordable and cost-effective service that scans your businesses networks for vulnerabilities. 

Unlike traditional penetration testing CyberScore™ is scalable, affordable, peer-rated and rapid. It can also be scheduled to scan as often as a user wants, ensuring that they remain up to date with patch management and the latest vulnerabilities and threats.

CyberScore™ is much cheaper and more reliable than traditional penetration testing, which usually costs tens of thousands of pounds and weeks of time spent by humans to conduct testing manually.  The tool automatically analyses the data mined from inside and outside an organisation, identifies any vulnerabilities found, and relays this information back to the user, with a rating from 1-10 for the internal assessment and a letter from A-F for the external, along with the option of a Get-Well Plan to remediate any issues.

For Further Reading -

3 Reasons why Cybersecurity is a Business Enabler

5 steps to choosing the best cybersecurity solution

Spending a little on cybersecurity now could save you a lot in the future

 

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