Persistent myths about cyber threats might be holding again small companies

Enduring myths about their cyber exposures might be holding again small companies from getting the safety they want, a current survey by Vacationers revealed.

In its 2024 Vacationers Danger Index, cyber threats have been named the highest concern amongst companies of all sizes.

Hart Analysis, which carried out the nationwide on-line survey on behalf of the insurer, polled 1,202 US enterprise decision-makers. This 12 months marked the fourth time in six years that cyber threats have ranked as the first concern, with a report 62% of members expressing vital fear about them.

The analysis additionally revealed a troubling statistic: practically half (48%) of smaller companies don’t suppose they’ll be a sufferer of a cyberattack as a result of they aren’t huge or complicated sufficient.

Tim Francis, enterprise cyber lead at Vacationers, highlighted the misperception in a current webinar presenting their findings. “(Our knowledge) does present that, oftentimes, the risk actors are merely going after the low-hanging fruit,” he mentioned.

Cyber dangers rising for all companies no matter measurement

Francis defined that cybercriminals typically goal community vulnerabilities reasonably than particular corporations, that means that companies with unaddressed weaknesses are liable to being attacked repeatedly.

“They use scanning expertise to seek out vulnerabilities, deploy malware or social engineering techniques, and typically don’t even know who the sufferer is till they’re contained in the community,” he mentioned.

“As soon as inside, they’ll take cash from a small, medium, or giant firm – measurement doesn’t matter. In the event you’ve been attacked and haven’t taken steps to stop one other one, you must anticipate to get hit once more.”

Vacationers discovered a slight rise in reported cyber incidents on this 12 months’s survey, with 24% of respondents saying their firm skilled a cyber occasion, in comparison with 23% in 2023. Greater than half of these incidents occurred throughout the final 12 months and greater than 80% throughout the final two years.

Francis famous the info displays the rising sophistication and frequency of cyberattacks. “Menace actors which might be committing these acts aren’t prone to cease anytime quickly,” he mentioned.

Companies named their high cyber-related considerations as follows:

• Safety breach and unauthorized entry to monetary accounts or management methods (57% every, tied for first)
• Ransomware (54%), which noticed the biggest enhance, rising from the ninth concern in 2023
• Workers placing info or methods in danger by unsafe computing practices (53%)
• System glitches (53%)

Cyber insurance coverage “greater than a monetary assure”

Amid rising challenges in cybersecurity, notably with the arrival of synthetic intelligence (AI)-driven cyberattacks, brokers have a robust alternative to assist small companies get the correct safety by an insurance coverage coverage.

In response to the Vacationers Danger Index, 65% of all respondents reported having a cyber coverage, up from 60% final 12 months and considerably greater than in 2018, when solely 39% had protection.

Nevertheless, amongst small companies (outlined as having 1 to 49 workers), solely 41% reported having a cyber coverage, in comparison with 77% and 78% of mid-sized and enormous corporations respectively.

Francis emphasised the significance of cyber insurance coverage as not only a monetary security internet but additionally a crucial useful resource for companies to entry experience throughout a cyber occasion. Small companies are particularly susceptible as a result of they typically lack the sources and information vital to guard themselves.

“A cyber insurance coverage coverage is extra than simply phrases on a web page and a monetary assure – it’s an ecosystem of claims professionals,” mentioned Francis. “When a cyber occasion occurs, the insurer typically acts as the primary responder, bringing in breach coaches and incident response distributors.

“If extra companies understood the magnitude of the occasions and the extent of experience they’d have entry to, I consider we’d see a better adoption price. I anticipate it to rise over time, nevertheless it actually ought to be greater already.”

What do you consider the findings on this 12 months’s Vacationers Danger Index and the cyber dangers that small companies face? Please share your feedback beneath.