Persistent myths about cyber threats may very well be holding again small companies

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

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

Hart Analysis, which performed the nationwide on-line survey on behalf of the insurer, polled 1,202 US enterprise decision-makers. This yr 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 massive or complicated sufficient.

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

Cyber dangers rising for all companies no matter measurement

Francis defined that cybercriminals usually goal community vulnerabilities relatively than particular firms, which means that companies with unaddressed weaknesses are prone to being attacked repeatedly.

“They use scanning know-how to search out vulnerabilities, deploy malware or social engineering techniques, and generally don’t even know who the sufferer is till they’re contained in the community,” he stated.

“As soon as inside, they’ll take cash from a small, medium, or massive firm – measurement doesn’t matter. If you happen to’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 yr’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 yr 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 stated.

Companies named their high cyber-related considerations as follows:

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

Cyber insurance coverage “greater than a monetary assure”

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

Based on the Vacationers Danger Index, 65% of all respondents reported having a cyber coverage, up from 60% final yr and considerably larger than in 2018, when solely 39% had protection.

Nonetheless, amongst small companies (outlined as having 1 to 49 staff), solely 41% reported having a cyber coverage, in comparison with 77% and 78% of mid-sized and huge firms respectively.

Francis emphasised the significance of cyber insurance coverage as not only a monetary security web but in addition a vital useful resource for companies to entry experience throughout a cyber occasion. Small companies are particularly weak as a result of they usually lack the assets and data 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,” stated Francis. “When a cyber occasion occurs, the insurer usually 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, but it surely actually ought to be larger already.”

What do you concentrate on the findings on this yr’s Vacationers Danger Index and the cyber dangers that small companies face? Please share your feedback under.