One of the most frightening and controversial statistics used in cyber security and cyber insurance advertising regards the impact a data breach has on a small business.
As the narrative goes, 60% of small businesses file for bankruptcy within six months of a breach. That number is often attributed to the National Cyber Security Alliance.
That’s a frightening number for obvious reasons but controversial because the National Cyber Security Alliance says it never stated or reported that figure.
So perhaps in response to the controversy that has embroiled the organization for the past half-dozen years over that claim (google it to see how many times it appears in the search results), the Alliance commissioned a survey of 1,006 small business owners and CEOs to get a better handle on what the actual figure might be.
The results aren’t a whole lot more encouraging.
More than one-third of small businesses responded that they filed for bankruptcy or closed their doors after a successful cyber attack. That’s 25 percent who filed for bankruptcy and 10 percent who went out of business.
That’s certainly not in the 60 percent stratosphere but it should give small business leaders enough pause to ensure that their cyber security measures meet their data handling needs.
In addition, 63 percent of small businesses in a 2019 Ponemon Institute study conducted for Keeper Security said they had suffered a data breach in the previous 12 months. Keep in mind this is just the percentage of small businesses that suffered a data breach, not the actual number that were attacked, which is 100 percent as every SMB receives phishing emails on a regular basis.
I state this often but it bears repeating often — you cannot protect your business with guesses. You must know what risks your specific business faces to make the most cost-effective decisions regarding the cyber security measures you need. The only way to do that is with a Cyber Security Risk Assessment.
If you need help with that, call Threatucation at 302-537-4198. Mention this blog post and we’ll conduct a free, no-obligation Cyber Security Risk Assessment for you.