The Importance of Cyber Security for Small Businesses in 2024

Cyber security is a pressing concern for small businesses and consumers alike in today's digital age. Cyber criminals are constantly evolving their tactics, making it essential for businesses to stay ahead with effective security measures in place before an incident occurs. The risks associated with even a single security incident can cause permanent loss of trust in your business. In 2024 emerging threats include AI generated phishing, supply chain attacks and lackluster small business cyber security insurance. In this comprehensive blog post, we explore the importance of cyber security for small businesses and how SierrÆgis Cyber Security can provide advanced protection through proper education, planning and prevention.

Too Little Too Late: The High Price of Cyber Security Risks for business in 2024

According to recent studies, cyberattacks are becoming increasingly common and costly for small businesses. In fact, a staggering 55% of people in the U.S. would be less likely to continue doing business with companies that have been breached. The financial impact of these attacks can be significant, Verizon’s Data Breach Statistics reveal that on average, small businesses spend between a modest $826 and whopping $653,587 on cybersecurity incidents. Moreover, the average time it took to identify a data breach was 212 days and the average organization took 286 days to identify and contain a breach. Perhaps even more staggering is this quote from Dr. Jane LeClair the Chief Operating Officer of the National Cybersecurity Institute: “Fifty percent of small to medium-sized businesses (SMB) have been the victims of cyber attack and over 60% of those attacked go out of business".

The (1200%) Rise of Generative Artificial Intelligence Phishing

Tools such as ChatGPT has given cyber criminals powerful new weapons to launch sophisticated phishing campaigns targeting small businesses. Since the fourth quarter of 2022, there's been a 1,265% increase in malicious phishing emails, and a 967% rise in credential phishing in particular, according to a new report by cybersecurity firm SlashNext. Cyber criminals are leveraging AI chat-bots like ChatGPT to help write targeted business email compromise (BEC) and other phishing messages. On average, 31,000 phishing attacks were sent on a daily basis, with nearly half of the surveyed cybersecurity professionals reporting receiving a BEC attack, and 77% of them reporting being targets of phishing attacks. These findings are particularly alarming since a joint study by Stanford University Professor Jeff Hancock and security firm Tessian has found that a whopping 88% of data breach incidents are caused by employee mistakes highlighting that 52% was via phishing. The urgent need for small businesses to protect against AI-based threats including providing continuous end-user education and training, implementing email filtering using machine learning and AI are imperative.

Cyber insurance itself is not a solution.

Small businesses increasingly see ransomware with the shift to remote work and cloud computing. In response, the small business owners with FTC guidelines are turning to cyber insurance providers for financial protection against cyber losses, but cyber insurance companies are requiring rigid protection measures and proactive risk assessment an penetration testing as a condition of coverage in some cases. “Most insurance requirements still fall into basic cybersecurity measures, what one would expect every company operating online to have in place,” said Jack Kudale, founder and CEO of Cowbell Cyber" a cyber insurance company.

Cyber Risk Assessments and Penetration testing provide valuable insights into an organization's network security posture, helping to identify and address potential vulnerabilities before they can be exploited by cyber criminals. Small businesses, often lack the resources and expertise needed to effectively defend against ransomware attacks and as a result are particularly vulnerable. While cyber insurance for small businesses can transfer some risk to an insurer but only 17% of small businesses currently carry cyber insurance and many of them did not purchase it until after an attack had already occurred. This lack of preparedness leaves small businesses vulnerable to crippling financial losses from customer mistrust and potential downtime or loss of data following a cyber incident.

SierrÆgis Cyber Security provides expert solutions for the critical areas discussed in this article, ensuring your business needs are met. Recognizing the heightened cyber risks in 2024, we advocate for proactive defense strategies. Contact us for inquiries or to schedule a complimentary Onsite General Risk Assessment. Stay informed by subscribing to our newsletter for the latest in cyber security trends, threats, and best practices.