Small businesses face increasing cost of cyber-attacks » SMEInsider

Small businesses face increasing cost of cyber-attacks

Cyber-attacks are becoming the largest threats towards small businesses, according to the government Information Security Breaches Survey Report.

Conducted by PwC, the report shows that in 2014, 60 per cent of small businesses had a security breach online. Although this number has decreased from last year, which was four per cent higher, the cost of protecting small businesses has risen significantly.

The average cost of a breach in security has nearly doubled since 2013. The average cost for a breach is between £65,000 – £115,000, which is up from £35,000 – £65,000 last year.

Inevitably, computer breaches have led to an increased demand for insurance against cyber-attacks. Insurance companies such as Lloyds of London have experienced a larger demand for protection against cyber attacks

‘‘In terms of our customers, approximately 70pc are first time purchasers. We’re also seeing customers in those sectors which were affected last year – and in particular in the retail sector – looking to buy higher limits’’ said Geoff White, underwriting manager for cyber, technology and media at Lloyds syndicate Barbican.

The usual suspect for such attacks is malicious software, with 45 per cent of small businesses suffering from infection from viruses or malicious software in the last year.

Malicious software usually targets a small business for its personal information, with 4 per cent of small business owners admitting that outsiders have stolen their intellectual property or confidential data in 2014.