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Owners at Small Businesses Still Struggle with Data Protection

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Small-business owners who are not taking cyber security seriously could be in for a big wake-up call very soon as 42 percent of small to medium-sized business owners said they have forfeited businesses partners and customers alike due to a data breach, and 35 percent of participants feel their reputation has been negatively affected.

Understand the potential of cyber threats is imperative for small-business owners who want to protect their data and feel safe storing their critical information on the internet. According to the research, the spread of unstructured data, lack of security on improperly managed third-party providers such as cloud websites, and lack of knowledge on exactly where sensitive data is stored are the three greatest threats to owners of small firms.

By investing in Cyber Liability Insurance policies, owners at SMBs will have greater confidence in their online process and the security of their data that is so vital to the success of their organizations.

Dmitry Shesterin, product management VP for Faronics, noted that though companies are by now more aware about the potential security threats that exist, they still do not appear to understand fully the consequences associated with even small data breaches. The survey results show that companies do not comprehend just how much they can suffer because of a data breach, in terms of costs, damages, lost productivity and a damaged reputation.

Why are SMBs Struggling with Cyber Security?

Taking the easiest or cheapest route to data protection has been something many IT managers have been doing, which can be a big mistake in the long run. The survey found 73 percent of respondents seek out products that are easy to deploy and do not require a lot of maintenance.

Founder and chairman of Ponemon Institute, Dr. Larry Ponemon, stated that these findings show that businesses have a tendency to underestimate how much damage a data breach can inflict to a brand’s image and overall reputation. These misconceptions keep companies from instituting essential financial tools, cultivating the necessary in-house expertise and deploying the right technology to ensure they are prepared to protect their data.

Another factor making it difficult for SMBs to have strong cyber security practices is that 64 percent of respondents are lacking a staff that is knowledgeable and trained to properly secure data and information. By adding an employee that has expertise in data protection, owners at SMBs can feel better about the security of their information stored online.

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