SMBs Are Taking Cybersecurity More Seriously

Amongst a backdrop of mounting cybersecurity threats, small and medium-sized businesses (SMBs) have woken up to the risk that ransomware and malware pose for their organisation. Many are taking additional measures to protect themselves against attacks, according to a new survey by Datto, a Kaseya company.

In its annual State of Ransomware Report, nearly 3,000 IT professionals in SMBs across eight countries weighed in on the steps they are taking to protect themselves, from investing in more security products to utilising multiple security frameworks.

The key finding is that SMBs globally are actively investing in cyber protection. While on average, a fifth of the IT budget is dedicated to security, around 4 in 10 businesses (42%) are seeing their security budget increase and allocating additional resources.

The majority have implemented basic defences - anti-virus and email protection - and are now expanding their security strategy to other areas.

For example, nearly half (47%) of SMBs plan to invest in network security in the next 12 months, and 45% percent are looking to add cloud security. Further down the shopping list are security solutions for collaboration tools, endpoint security and Business Continuity and Disaster Recovery (BCDR).

While installing the right tools is important, SMBs also increasingly understand the need to proactively monitor their security posture. Nearly two thirds (62%) run vulnerability assessments at least twice a year, with more than a third (37%) scheduling them three or more times a year.

The CIS framework is the most used cybersecurity framework, with 34% of respondents utilising it. This is followed by CMMC (30%), COBIT (27%), and NIST (22%).

Investment In Cyber Insurance

Cyber insurance is a key consideration for SMBs as it can offset the repercussions of breaches. However, in the face of stricter regulations and growing threat volumes, cyber insurance is becoming harder to obtain, with some insurers stipulating that businesses need to have certain security controls in place in order to qualify. 

In the survey, over two thirds (69%) of respondents said they have cyber insurance in place, and 34% of those without insurance are likely to get it within a year. Fear of being hit by ransomware seems to be one of the drivers, as 42% of SMBs with cyber insurance believe it’s extremely likely that a ransomware attack will happen to them. Seven in 10 respondents admitted that a successful attack would seriously impact their organisation, with some saying it could be a fatal blow.

Overall, the survey found that organisations with cyber insurance tend to be more actively engaged in cybersecurity. They have more IT support, more frameworks (CSFs) and more security solutions. They’re also more likely to have experienced a security incident in the past.

Across the board, nearly a third of all respondents encountered computer viruses in the past year and 21% reported COVID-19 related scams or threats. As the main reason behind these security issues, 37% of SMBs cited phishing emails, followed by malicious websites and weak password and access management. However, around 42% feel they have had security issues due to lack of training and 24% said it was down to poor user practices and gullibility – indicating that there is room for improvement when it comes to building out their defence layers.

Lack Of Preparedness Is The Weak Spot

Despite the heightened awareness and increased investment in cyber protection, there is another area that could let SMBs down: planning for the worst-case scenario. Only 3 in 10 businesses have a best-in-class recovery plan in place. Around half (52%) rely on a standard plan and 16% admitted there is no formal recovery plan, leaving them wide open to complete data loss and major business interruption. Perhaps this explains why nearly half of respondents (47%) say their companies would find recovery from a cyberattack difficult – and 16% fear that their business would not recover at all.

In fact, downtime is an expensive problem that nearly half of survey respondents have encountered in the past year.

In 2022, the average cost of downtime was 126,000 USD, including lost revenue. An eyewatering figure, but many SMBs still don’t have the tools to minimise downtime, such as a unified BCDR solution, a managed security operations centre (SOC) or an incident response strategy.

Just under half (49%) of surveyed SMBs relied on manual backups to recover data during an incident, and one fifth were forced to reinstall and reconfigure all systems from scratch. With slow and cumbersome recovery processes, around 45% of businesses endured more than two days of downtime before their systems were back up and running.

It is clear that many SMBs will need additional help planning for, and dealing with, security incidents. The cybersecurity talent shortage is a contributing factor, as is lack of expertise.

A growing number outsource the job: Almost half (47%) of the IT professionals surveyed said their organisation relies on a managed service provider (MSP) or a managed security service provider (MSSP). With increasingly complex cyber threats, this percentage is likely to grow.

Chris Mckie is VP, Product Marketing Security & Networking Solutions at Datto

You Might Also Read: 

Cyber Security Tools For Your Small Business:

___________________________________________________________________________________________

If you like this website and use the comprehensive 6,500-plus service supplier Directory, you can get unrestricted access, including the exclusive in-depth Directors Report series, by signing up for a Premium Subscription.

  • Individual £5 per month or £50 per year. Sign Up
  • Multi-User, Corporate & Library Accounts Available on Request

Cyber Security Intelligence: Captured Organised & Accessible


 

« Human Error Is A Hacker's Dream
Creating Order Out Of WAF Management Chaos »

CyberSecurity Jobsite
Check Point

Directory of Suppliers

MIRACL

MIRACL

MIRACL provides the world’s only single step Multi-Factor Authentication (MFA) which can replace passwords on 100% of mobiles, desktops or even Smart TVs.

Resecurity

Resecurity

Resecurity is a cybersecurity company that delivers a unified platform for endpoint protection, risk management, and cyber threat intelligence.

Practice Labs

Practice Labs

Practice Labs is an IT competency hub, where live-lab environments give access to real equipment for hands-on practice of essential cybersecurity skills.

Directory of Cyber Security Suppliers

Directory of Cyber Security Suppliers

Our Supplier Directory lists 8,000+ specialist cyber security service providers in 128 countries worldwide. IS YOUR ORGANISATION LISTED?

Clayden Law

Clayden Law

Clayden Law advise global businesses that buy and sell technology products and services. We are experts in information technology, data privacy and cybersecurity law.

SSL247

SSL247

SSL247 is Europe's leading Web Security Consultancy Firm. We enjoy long-standing partnerships with Certificate Authorities including Symantec, GlobalSign, Entrust Datacard, Comodo, Thales and Qualys.

InfoSecurity Magazine

InfoSecurity Magazine

Infosecurity Magazine has over ten years of experience providing knowledge and insight into the information security industry.

Applicure Technologies

Applicure Technologies

Applicure Technologies develops the leading multi-platform web application security software products to protect web sites and web applications from external and internal attacks.

VisionWare

VisionWare

VisionWare provide consulting services and solutions in areas covering both physical and digital security.

Galvanize

Galvanize

Galvanize is a leading provider of award-winning, cloud-based security, risk management, compliance, and audit software for some of the world’s largest organizations.

ERNW

ERNW

ERNW is an independent IT Security service provider with a focus on consulting and testing in all areas of IT security.

CSO GmbH

CSO GmbH

CSO GmbH provide specialist consultancy services in the area of IT security.

Arm

Arm

Arm technology is building the future of computing. We architect, develop, and license high-performance, low-cost, and energy-efficient IP solutions for CPUs, GPUs, NPUs and interconnect technologies.

Pentest Limited

Pentest Limited

Pentest Limited provide information security consultation, penetration testing & red teaming services to companies across the globe.

Exceed Cybersecurity & I.T. Services

Exceed Cybersecurity & I.T. Services

Exceed Cybersecurity & I.T. Services is a premier Managed Internet Technology (I.T.) company with a focus in cybersecurity risk management and CMMC compliance management.

BIRD Cyber

BIRD Cyber

BIRD Cyber is a program to promote collaboration on cybersecurity and emerging technologies aimed at enhancing the cyber resilience of critical infrastructure.

AVEVA

AVEVA

AVEVA has a long history in providing Supervisory Control and Data Acquisition software for meeting complex and evolving automation requirements.

Secure Halo

Secure Halo

Secure Halo has been protecting the intellectual assets and sensitive information of the federal government and private sector for 20+ years, through our proactive approach to risk and cybersecurity.

Hack-X Security

Hack-X Security

Hack-X Security provide IT risk assessment and Digital Security Services. We are a trusted standard for businesses that must protect their data from cyber-attacks.

Omnex

Omnex

Omnex provides consulting and training services in Quality, Environmental, and Health and Safety standards-based management systems including Automotive Cybersecurity.

COcyber

COcyber

COcyber aims to enhance collaboration between the cybersecurity civilian and defence spheres. It is a two-year project funded by the European Union and it kicked off in July 2024.