I own a small retail business. I know I am a target…who isn't? But what is the real risk if I am hacked?
The real risk is closure of your business.
According to the National Cyber Security Alliance, as reported by Inc., 60 percent of small- and medium-sized business close within six months after a data breach. https://www.inc.com/joe-galvin/60-percent-of-small-businesses-fold-within-6-months-of-a-cyber-attack-heres-how-to-protect-yourself.html
Not only is the damage greater to small businesses, according to Forbes, small businesses are three-times more likely to be targeted for an attack. Businesses with fewer than 100 employees receive 350 percent more social engineering attempts than larger businesses. https://www.forbes.com/sites/edwardsegal/2022/03/30/cyber-criminals/?sh=484a698a52ae
One reason small- and medium-sized businesses close after an attack is that they are less prepared for a breach than larger enterprises and take fewer prevention steps. https://www.inc.com/joe-galvin/60-percent-of-small-businesses-fold-within-6-months-of-a-cyber-attack-heres-how-to-protect-yourself.html
Why a small business would have to close varies, but primarily the reason involves not having the financial and cybersecurity resources to weather the fallout from an attack - from litigation to loss of business reputation.
The final takeaway is never consider yourself too small for a cyberattack. Continually focus on prevention, but be prepared if a breach occurs.
Talk with your agent or broker about blunting the financial harm with insurance and step up your prevention and post-breach strategies, including training your employees; increasing your cybersecurity defenses; and developing a post-breach strategy, including developing a relationships that can quickly assist and counsel your organization in case of a breach.