Is Cyberattack A Business Disaster?

Small and medium sized enterprises (SMEs) employ a large portion of the world’s workers and contribute to the GDP of their country. They are the backbone to the economy with most businesses being an SME, and most workers working for an SME. Due to limited resources, limited time and limited knowledge, SMEs are more vulnerable to cyberattacks. Cyberattacks may ruin SMEs’ money, reputation, and operations. So, yes; cyberattacks are an SME disaster. And yes, disasters in this digital world are not limited to floods, fire, earthquakes and the like.

First, fraudsters target SMEs because of their poorer cybersecurity. SME’s lack of resources renders them more vulnerable to cyberattacks. In 2020, 46% of SMEs reported a cybersecurity breach, costing an average of $13,000 per attack, according to UK government research. SME budgets may not be able to handle this expenditure. 

Second, cyberattacks can ruin an SME’s reputation. Cybersecurity breaches may damage the confidence SMEs need to attract customers and investors. Data breaches may disclose consumer names, addresses, and credit card numbers, eroding customer confidence and loyalty. Cyberattacks can cause considerable corporate and economic losses due to reputational harm.

Thirdly, a cyberattack can impair an SME’s activities, since it can cause considerable financial losses. SMEs have limited resources, and a cybersecurity compromise can take vital systems offline, affecting business operations. This can cost SMEs income, productivity, and deadlines as a whole. Due to the size of the business even one day off work can affect the company in a big way, and if the attack is targeted to hit on their busiest day, it can be detrimental to the business. 

However scary a cyberattack may sound, SMEs can still protect their business in many ways and one of which is investing in a good communication provider like Conxhub that can help businesses to stay connected, secure, and resilient in the face of a cyberattack. Remember, communication is the groundwork of any strong business and having a reliable network can help SMEs in this aspect.

Cyberattacks may ruin an SME’s reputation, money, and operations. SMEs must invest in cybersecurity protections, train staff, and create incident response plans to reduce cyberattack risk. Thus, SMEs can secure their brand and finances against cyberattacks.