Study reveals cost of SME cybercrime

According to a new study by Zurich, 16% of UK SMEs were hit by cyberattacks in the last 12 months. That’s over 875,000 businesses impacted by breaches. And while there’s a clear financial cost, other studies show that there is more to be lost by not paying attention to cybersecurity.

Scale and cost

Zurich also queried respondents about the costs incurred as a result of these kinds of crimes. 21% of victims said these incidents cost them over £10,000, while 11% faced expenses upwards of £50,000.

The scale of the problem does not seem to be encouraging businesses to invest in online security, however. 49% of those surveyed told the insurer that they would spend less than £1,000 on protecting their company over the next year and a further 22% were not sure what they would spend.

More than money

There has also been some study of how cybersecurity affects a business when it comes to winning clients. Zurich’s report found that 5% of companies they spoke to said they had gained a direct competitive advantage thanks to their safety credentials.

Meanwhile, a separate survey by IT firm CybSafe found that a third of SMEs had been questioned on the subject of internet security while bidding for contracts over the past year. What’s more, 50% of SMEs told CybSafe that cyber safety clauses had been added into existing contacts – reflecting the increased importance many businesses place on online security.

Targeting improvements

While one in seven respondents to the CybSafe survey had no cybersecurity in place at all, there are signs that SMEs are aware of the dangers to their businesses. According to security firm Pwnie Express, SMEs are much better informed about security threats when it comes to the Internet of Things (IoT). Only 25% of SME security professionals were unaware of IoT threats in the past 12 months, compared to 41% at large companies.

Nonetheless, with cybercrime increasing, it’s more important than ever to protect your information against criminal attacks. Failing to prepare could mean loss of funds, cashflow issues and reputational damage.

For more information about how to maintain a strong cashflow, contact one of our advisors at Dukes Bailiffs today.