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Data Breaches Force 10% of Small Company Victims Out of Business

By Silviu Stahie on Oct 28, 2019 | 0 Comments

Cyberattacks are among the most dangerous threats for small businesses, with 25% of affected organizations filing for bankruptcy and 10% going out of business entirely, according to a new survey.

The Zogby Analytics survey, commissioned by the National Cyber Security Alliance, also concluded that 88% of small companies believe they are a likely target for attacks and only 46% feel ready to face one. More than 1,000 cybersecurity decision-makers from small businesses responded to the survey.

“Consistent with that, almost two-thirds (62%) report that cyber security is a high priority for their business,” says the survey. “Concern about cyber security is especially strong among larger companies – cyber security is a high priority for 72% of businesses with 251-500 employees and for 39% of businesses with 1-10 employees.”

28% of respondents said their businesses suffered a data breach in the past 12 months. The numbers also show that the larger the company, the more likely a data breach is. 11% of affected companies had 1-10 employees, and organizations with 251-500 employees accounted for 44% of the incidents.

The study also concludes that the vast majority of companies are well aware of the threat posed by cybercriminals. More than 50% of the organizations reported they have a plan in place in case of a data breach.

A recent IMB study calculated the average cost of a data breach at $3.92 million, explaining why some smaller companies would have to declare bankruptcy or go out of business.

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Author: Silviu Stahie

Silviu is a seasoned writer who followed the technology world for almost two decades, covering topics ranging from software to hardware and everything in between. He's passionate about security and the way it shapes the world, in all aspects of life. He's also a space geek, enjoying all the exciting new things the Universe has to offer.