Cybercrime can do huge damage to businesses, but whereas a large company is likely to survive, albeit battered and bruised, an SME can be devastated. In this article we will look at just a few of the ways in which cybercrime can negatively impact an SME.
Theft of information
A cyber-attack can lead to the theft of company information such as customer details and other sensitive data. The media often publicises such attacks on major companies but in reality it is SMEs that are successfully attacked most often. The theft of credit card details for example is particularly harmful to a smaller company due to the harmful impact upon its reputation.
According to a government survey held in June 2015, the average monetary cost of a cyber security breach for large organisation climbed to £1.46 million. For smaller firms the financial impacts also rose with a severe security breach typically costing £310,000. The negative impact of a cyber-attack must not be underestimated as the victim has to pay out to cover lost sales, business disruption, fines, compensation and the recovery of lost assets.
Often a cyber criminal’s objective is to steal money either directly or via stealing data which could lead to a financial payoff.
A cyber attack can result in the theft of sensitive business data or the theft of customer details. If such a breach is made public it can do serious harm to a SMEs reputation. Businesses should also be aware of the effects of the potential impact of online social media. Failing to monitor what is being said about your business online could result in unwanted content being posted about it. A damaged reputation is also likely to lead to customers being wary of your business and in turn result in a loss of revenue.
Another monetary loss for SMEs can also come in the form of extra expenses needed to improve their cyber security. Training for staff, upgrading of hardware and software all cost money. Investment may be expensive but with the cyber threats growing on a daily basis it is vital. Due to
Having the Cyber Essentials accreditation for example will also be beneficial for a company as it will need it to bid for government contracts. Since 2014, all suppliers handling sensitive information need a Cyber Essentials accreditation.
For more information on how to protect your business contact PGI Cyber.