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Small Business Cybersecurity: Can You Afford to Go Without?

“Who would even bother hacking us?”

Too many small business owners have had that misguided thought for too long. They think they’re not large enough to be a target for hackers – but nothing could be further from the truth. Because many small businesses turn a blind eye, they’re unprepared from a cybersecurity standpoint – ironically helping to reinforce the sad reality that small businesses are an easy target for hackers and other cyber criminals.

We understand that small business budgets are tight and finding financing can be a job in and of itself. But it’s critical that you understand the risks of leaving yourself vulnerable to a cyberattack, and the substantial costs you might incur later to save a few bucks today.

Here are some things you should know about the importance of small business cybersecurity, and a few things you should read before asking yourself, “Can I afford to go without protection?”

  • Small Businesses are the most common victims: Why go after small fishes when you could score billions of dollars or priceless trade secrets from a giant global corporation? Because many of those companies are exceedingly well-defended and better prepared for hacking, phishing, malware and other attacks. Small businesses might yield smaller prizes, but they’re also easier to get to. Hence, it should be no surprise that Verizon’s 2018 Data Breach Investigations Report found that small businesses are the intended target of 58% of all cyberattacks. This report covered more than 53,000 incidents, including roughly 2,200 breaches, within a 12-month period.
  • Cyber Crime Costs Real Money: If you’re worried about the cost of a cybersecurity solution, you’re not alone. A 2018 Hiscox small business cyber risk report – which reached out to 4,103 professionals responsible for their company’s cybersecurity strategy – found that 50% of companies “said lack of budget is a challenge or major challenge.” But the report also found that suffering a cyberattack led to financial strain, too. “Small businesses estimated their average cost for incidents in the last 12 months to be $34,604. Among large companies (more than 1,000 employees), the annual average cost of cybercrime was $1.05 million.”
  • Cyber Attacks Have a High Business Fatality Rate: Sure, $34,604 sounds like (and is) a lot less than $1.05 million … but also consider that too many small businesses, that seemingly modest sum is very much the difference between life and death. A collaborative report from Inc., Cisco Systems and the National Center for the Middle Market found that “(60%) of small and midsized businesses that are hacked go out of business within six months.” That means if you’re small, and you’re hacked – which is easily done if you have no cyber protection – there’s better than a coin flip’s chance that you won’t survive to see next year.

While cybersecurity isn’t one of our specialties, McManamon & Co can help you better afford the cyber solutions you need. Our consulting arm includes tax-planning services that can help you save money annually by better positioning you to reap various credits and deductions. Call us at 440.892.9088 or contact us online today!

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