Cybersecurity Statistics – What the Latest Statistics Reveal for Small Businesses

Cyber Attacks

Amit Birk
July 26, 2024

Today we’re talking about something crucial for every small business owner: cybersecurity.

In today’s digital world, small businesses are being targeted by cybercriminals more and more. The idea that “we’re too small to be targeted” is a myth that’s been proven wrong by recent statistics. Cyber threats are evolving and small businesses need to stay informed and proactive to protect their digital assets.

Looking ahead, the cybersecurity landscape is going to get more complex. As cyber criminals use more sophisticated tactics, using artificial intelligence and machine learning, the risks to small businesses will only increase. But there’s a silver lining: those same technologies can be used to create better defense mechanisms.

In this post, we’ll look at the latest cybersecurity trends and statistics for small businesses and what you can do to protect your business. This post will give you a comprehensive overview of the current cybersecurity landscape. We’ll cover categories like vulnerability rates, types of threats, preparedness levels, and the financial impact of cyber attacks. Our goal is to educate and empower you with actionable insights to improve your cybersecurity. Let’s get started!

1. Vulnerability and Cybersecurity Threat Statistics

66% of small business owners reported having experienced cybersecurity attacks in the past 12 months [2], highlighting the alarming frequency and volume of these incidents.

82% of ransomware attacks in 2021 were against companies with fewer than 1,000 employees [2].

37% of ransomware attacks are launched against organizations with less than 100 employees [1].

Small businesses are being targeted by cybercriminals and the numbers prove it. 61% of SMBs were hit by a cyber attack in 2021 and 82% of ransomware attacks were against companies with less than 1,000 employees. So size doesn’t matter. These statistics show that small businesses need to take cybersecurity seriously regardless of their industry or size.

2. Types of Cyber Threats

Malicious software is the most common type of cyberattack aimed at small businesses (18%)[4].

The rise in frequency and sophistication of malware attacks poses a significant threat to computer systems, making it crucial for businesses to stay vigilant.

Phishing: 17%

Data breaches: 16%

Website hacking: 15%

DDoS attacks: 12%

Ransomware: 10%

Malware, phishing attacks, and social engineering attacks are the most common threats to small businesses. The prevalence of phishing attacks, including vishing and spear phishing, highlights the alarming scale of this cybersecurity concern. This statistic highlights the importance of employee training and awareness programs as part of an overall cybersecurity strategy.

3. Cybersecurity Preparedness

51% of small businesses have no cybersecurity measures in place at all [2].

Only 20% of small businesses have implemented multi-factor authentication[1]. Business Email Compromise (BEC) attacks represent the most prevalent form of phishing, where attackers compromise or impersonate official email accounts to deceive individuals within a business. BEC attacks accounted for 34% of all phishing incidents in 2022, highlighting the importance of Multi-Factor Authentication solutions.

43% of SMBs did not have an incident response plan in place [2].

1 in 5 small organizations did not use endpoint security [2].

52% of SMBs did not have IT security experts in-house [2]. The growing demand for cybersecurity professionals is evident, but there is a significant skills shortage in this field, necessitating creative solutions to attract and develop new talent.

The preparedness statistics are the most concerning, showing major gaps in small business cybersecurity. 51% of small businesses have no cybersecurity measures in place at all and 20% use multi-factor authentication. Clearly there’s a lot of room for improvement. These numbers mean many small businesses are leaving their digital doors open and unguarded.

4. Cybersecurity Spending and SMB Cybersecurity Statistics

Nearly half of all SMBs spend less than $1,500 monthly on cybersecurity[3].

22% of small businesses increased cybersecurity spending in 2021[1].

The average privacy budget for smaller organizations (250-499 employees) doubled from $0.8 million to $1.6 million[2].

Cybersecurity spending among small businesses is increasing, but slowly. The doubling of the average privacy budget for smaller organizations is a good sign. But nearly half of all SMBs spend less than $1,500 a month on cybersecurity. There’s a big gap between the threat level and the resources being allocated to address it. In the context of increasing cyber threats, the importance of data security cannot be overstated. Organizations need to prepare their teams to handle these challenges effectively.

5. Impact and Recovery

75% of SMBs could not stay in operation if hit with ransomware [5].

83% of small and medium-sized businesses claimed not to be financially prepared to recover from a cyberattack [6].

51% of small businesses that fall victim to ransomware pay the money [5].

95% of cybersecurity incidents at SMBs cost between $826 and $653,587 [5].

A cyber attack on a small business can have severe consequences. The statistic that 75% of SMBs would not be able to operate if hit by ransomware is chilling. Add to that 83% of small and medium-sized businesses saying they are not financially prepared to recover from a cyber attack and you see the existential threat that cyber risks pose to small businesses.

Most cyber incidents arise from human error rather than technological failures, highlighting the significance of understanding these incidents in the context of public safety and infrastructure resilience.

6. Perception and Awareness: Remote Work Cybersecurity Statistics

36% of small business owners reported being “not concerned” about cyberattacks [2].

59% of small business owners claim they are “too small” to be targeted [2].

45% of small business owners said that their processes were ineffective at mitigating cyberattacks [2].

69% of small business owners stated that cyber attacks were becoming more targeted [2].

There’s a big gap between the reality of cyber threats and small business owners’ perception. 36% of small business owners said they are “not concerned” about cyber attacks and many believe they are too small to be targeted. This needs to be addressed through education and outreach.

The rise in security breaches and their increasing severity highlight the risks and consequences associated with these incidents.

7. Post-Attack Response and Adaptation

Under 30% of SMBs that suffered a breach in 2022 responded by hiring IT staff or a cybersecurity firm [2].

42% of small businesses have revised their cybersecurity plan since the COVID-19 pandemic [5].

The post-attack statistics show both challenges and opportunities. Under 30% of SMBs that were breached hired IT staff or a cybersecurity firm. But 42% have revised their cybersecurity plans since the COVID-19 pandemic. So there’s growing recognition of the importance of cybersecurity, even if the actions don’t always match the awareness.

8. Adoption of Security Measures

Top cybersecurity tools SMBs plan to adopt: antivirus software (58%), firewall implementation (49%), VPN usage (44%), and password management (39%) [2].

Only 17% of small businesses encrypt their data [1].

The adoption rates of various security measures is a roadmap for small businesses to improve their cybersecurity. Focusing on antivirus software, firewalls, VPNs and password management is a good start but the low rate of data encryption (17%) is an area where many small businesses can improve significantly.

9. Data Vulnerability

87% of small businesses have customer data that could be compromised in an attack [7].

27% of small businesses with no cybersecurity protections collect customers’ credit card info [5].

The vulnerability of customer data in small businesses is a critical concern. A staggering 87% of small businesses have customer data that could be compromised in an attack. This statistic underscores the immense responsibility small businesses have in protecting their customers’ information.

Even more alarming is that 27% of small businesses with no cybersecurity protections collect customers’ credit card information. This practice puts both the business and its customers at significant risk. It highlights the urgent need for small businesses to implement robust cybersecurity measures, especially when handling sensitive financial data.

10. Industry-Specific Insights

Cybersecurity threats don’t affect all industries equally. Let’s look at some industry-specific statistics that highlight the unique challenges different sectors face:

Healthcare Industry

The healthcare industry is expected to spend a whopping $125 billion on cybersecurity from 2020 to 2025 [12].

These statistics underscore the critical nature of cybersecurity in healthcare, where lives are literally at stake.

Financial Services

Financial services firms are 300 times more likely to be targeted by cyberattacks than other companies [8].

The average cost of a data breach in the financial sector was $5.85 million in 2023 [9].

The financial sector’s attractiveness to cybercriminals is clear, as is the potentially devastating financial impact of a breach.

Retail Industry

24% of all cyberattacks targeted the retail industry in 2022 [10].

The average cost of a data breach in the retail sector was $3.28 million in 2023 [11].

With a significant portion of cyberattacks targeting retail and the high costs associated with breaches, cybersecurity is crucial for this sector.

Manufacturing

30% of all cyberattacks in 2022 targeted the manufacturing sector [13].

The average cost of a data breach in the manufacturing industry was $4.24 million in 2023 [14].

The manufacturing sector appears to be a prime target for cybercriminals, facing both a high frequency of attacks and significant financial risks.

Education

44% of educational institutions experienced a ransomware attack in 2022 [15].

The average cost of a data breach in the education sector was $3.79 million in 2023 [16].

Educational institutions are clearly not immune to cyber threats, with a high rate of ransomware attacks and substantial costs associated with breaches.

These industry-specific insights demonstrate that while cybersecurity is crucial for all businesses, different sectors face unique challenges and risks. Understanding these specific threats can help businesses in these industries tailor their cybersecurity strategies more effectively.

Summing Up:

The statistics above show just how critical cybersecurity is for small businesses. The threat landscape is complex and changing but there are concrete steps every small business can take to protect themselves. Basic security measures, employee education, and a comprehensive cybersecurity strategy are no longer optional – they’re essential for business survival in the digital age.

However, navigating this complex landscape can be tough, especially for small businesses with limited IT resources. That’s where partnering with a managed IT services provider can make a big difference. A qualified IT partner can bring the expertise, tools, and ongoing support to develop and maintain a strong cybersecurity stance.

Don’t wait for a cyber attack to take action. Protect your business, your data, and your customers by prioritizing cybersecurity today. Contact our team of IT experts to learn how we can help secure your small business against cyber threats and make sure your technology is working for you, not against you.