Cybersecurity Disconnect Between Businesses and Customers

According to survey results, three-quarters of Americans believe a significant cyberattack will hit businesses in the U.S. within the next year, but small business owners are only somewhat concerned that their business will suffer a cyberattack, in the next 12 months. 33% of owners with 0-4 employees are concerned about experiencing a cyber-attack within a year, compared with 61% of small business owners who have 50 or more employees. For the past four quarters, this trend has remained unchanged. However, most small businesses believe that cybersecurity threats are not a risk to them which creates a cyber disconnect between the business and the customer.

Across industries, consumers expect different levels of cyber-preparedness. 71% of people in the general population say they are confident that their banks (71%), their health care providers (64%), and their email service providers (55%), while just 32% say they are confident that social media platforms will protect them against cybersecurity threats.

Small businesses experience similar results. More than seven in 10 small business owners say they would be able to cope with a cyberattack, especially those in the finance and insurance industries. This number falls to 50% among those in the arts, entertainment, and recreation industries.

It is crucial to understand that even a quick-resolved cyberattack can have an ongoing negative impact on a company. Customers want to avoid cybersecurity breaches themselves, and they are skeptical of businesses that have been compromised in the past. In a recent survey, 55% of respondents said they would be less likely to do business with brands that suffer a cyber-attack.

A more concrete action plan is needed by small businesses to be prepared. The majority (55%) do not protect themselves against cyberattacks by installing antivirus software, initiating a 3-authenticator, strengthening passwords, or backing up data on an external hard drive. One-third of the companies have enabled automatic software updates. A virtual private network (VPN) has been installed by just a quarter of the companies.

Small businesses must implement these measures because they are much more costly than their corporate counterparts. If a cyber threat proves to be real, small businesses risk losing customers or even more if they fail to take it seriously.

Source: CNBC|SurveyMonkey Small Business Survey Q2 2022