Are Small Businesses Doing Enough to Protect Against Data Breaches?

These days, many small business owners are fully aware of the threats they face from online issues, including hacking, but they might not know what they can do about it. As a consequence, it seems that a large number are still simply not doing anything to protect themselves.

In all, new data suggests that nearly 1 in 3 smaller companies nationwide have done nothing to protect against cyber threats, despite the fact that such issues still weigh heavily on many small business owners, according to research from online data security firm CSID. Among owners whose companies have fewer than 100 employees, 63 percent say that they’re worried about whether their firms are being affected by malware they haven’t yet detected, 41 percent are concerned about data breaches through human error, and 38 percent say they’re concerned about phishing attacks.

“Small businesses are in a tough position when it comes to cyber security,” said Bryan Hjelm, vice president of product and Marketing at CSID. “They face a growing number of threats and attention by cyber criminals and don’t have the time or resources that larger enterprises have to devote to cyber security. It is going to be increasingly important for small businesses to be aware of the threats they face and learn how to address them effectively with limited resources.”

What are some doing to help?
Today, 29 percent of firms with between one and nine employees say they’re working with third-party vendors to improve their security, but 45 percent of those with between 10 and 99 workers say they’re doing the same, indicating that this issue is often a matter of scale and potentially revenues.

This may be an issue because other data suggests that cyber attacks on small businesses made up 30 percent of all such incidents nationwide last year, the report said. As recently as 2011, that number was just 18 percent.

Owners who want to best position their companies for success when it comes to protecting them from potential cyber security problems may want to think about the ways in which certain types of small business insurance can help the most. For instance, tech insurance may serve to significantly reduce their financial risk in this regard, thus potentially saving them tens or even hundreds of thousands of dollars in the event that such an incident occurs.