Survey: Data breaches cause 25% filed of bankruptcy and 10% went out of business
A recent survey focusing on the impact of cybercrime on SMEs revealed that “88 percent of small businesses believe that they are at least a somewhat likely target for cybercriminals” in 2019, 37% suffered financial losses, 25% filed of bankruptcy and 10% were forced to close their doors.
The survey was commissioned by the National Cyber Security Alliance (NCSA). Analysts conducted a survey of 1,006 SME decision-makers on cybersecurity topics. The results showed that 88% of respondents thought they were “possible” as targets, and 46% thought they were “very likely” to be targeted. Nearly two-thirds (62%) of respondents said that safety is the primary focus. One-third of respondents have an internal IT department of 10 or more, 30% have fewer than 10 IT staff, and 55% have an updated network security plan each year.
The data reflects the readiness of small companies to face future attacks: Nearly half (46%) respondents feel “fully prepared” to respond quickly to security incidents and limit incident impact, and 58% have response plans that can be acted upon immediately. One-third of respondents said that even if the computer is down, the company’s business can be properly operated. Mid-sized companies are relatively better prepared: 73% of companies with 251 to 500 employees have a good response plan.
But cyberattacks can be devastating. Nearly 30% of companies surveyed have experienced real security incidents in the past year, which is 11% for small companies of 1 to 10 people, and 44% for companies of 251 to 400 people. After the security incident, 69% of the companies surveyed were short-lived, 37% experienced financial losses, 25% declared bankruptcy, and 10% closed down.
