Small Business Still Not Ready For Cyber Attacks

Very few US small business see cyber attacks and security as a big risk, according to a report from CNBC which finds that only 5% saw cyber security as a business risk and inflation was far higher on their list of potential issues.

The CNBC SurveyMonkey Small Business Survey talked to more than 2,000 small business owners every quarter to understand their outlook on the overall business environment along with their own business’s health. It looks like small business directors are failing to take any new steps to reduce their business risk  from cyber attacks compared to last year.

Since the attempted in invasion of Ukraine, US security agencies have stepped up their warnings about an increased risk of a cyber attack, which Russia could use to try to draw the US into a direct conflict. “The cyber security authorities of the United States, Australia, Canada, New Zealand, and the United Kingdom (the Five Eyes), have released this joint Cyber Security Advisory (CSA). “The intent of this joint CSA is to warn organisations that Russia’s invasion of Ukraine could expose organisations both within and beyond the region to increased malicious cyber activity... This activity may occur as a response to the unprecedented economic costs imposed on Russia as well as materiel support provided by the United States and US allies and partners,” says the Cybersecurity & Infrastructure Security Agency.

This latest round of the Small Business Survey is the first since the start of the Ukraine war, although the international events have had no perceptible impact on the preparedness of small business in the US.

Key findings from the Survey include:

• Eight in ten small business owners expect a recession to occur this year
• Inflation continues to be a top concern, but small business owners are reluctant to raise their own prices.

• Despite the potential threat from Russia, cybersecurity is no more of a concern for small business owners now than in previous quarters.

• President Biden’s approval rating remains underwater among small business owners, with no change over the past three quarters.

• Small business confidence ticks up for the first time in the Biden Administration, popping up to a score of 46 out of 100, but remains near its all-time lows.

Smaller businesses are the least concerned about cyber attacks: just 33% of owners with 0-4 employees are concerned about experiencing a cyber attack within a year, compared with 61% of small business owners who have 50 or more employees. 

Consumers would rather not be the victim of a cyber security attack themselves, and they are wary to trust businesses that have been compromised in the past. 

In SurveyMonkey’s polling, 55% of people in the US say they would be less likely to continue to do business with brands who are victims of a cyber attack and small businesses need to be prepared and have a strategy and cyber security tactics list that they enact. 

• Fewer than 50% of businesses say they have installed antivirus or malware software, strengthened their passwords, or backed up files on an external hard drive to protect their business against potential cyber attacks. 

• Only a third each have enabled automatic software updates or enabled multi-factor authentication. Just one quarter have installed a virtual private network (VPN). 

Small businesses that fail to take the cyber threat seriously risk losing customers, or much more, when a cyber threat emerges. Small and medium sized business must take cyber threats seriously and education and training of directors and staff is vital.

CISA:      CNBC:      Momentlive:    Survey Monkey:    NewsQuick24:    CISO Magazine:     TechRepublic:  

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