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 Travelers revealed.

In its 2024 Vacationers Threat Index, cyber threats had 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 primary concern, with a file 62% of members expressing important fear about them.

The analysis additionally revealed a troubling statistic: almost 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 advanced sufficient.

Tim Francis, enterprise cyber lead at Vacationers, highlighted the misunderstanding in a current webinar presenting their findings. “(Our information) 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 dimension

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

“They use scanning know-how to seek out vulnerabilities, deploy malware or social engineering ways, and generally 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 massive firm – dimension doesn’t matter. When you’ve been attacked and haven’t taken steps to stop one other one, you must count on 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 inside the final 12 months and greater than 80% inside the final two years.

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

Companies named their high cyber-related issues as follows:

• Safety breach and unauthorized entry to monetary accounts or management programs (57% every, tied for first)
• Ransomware (54%), which noticed the biggest enhance, rising from the ninth concern in 2023
• Workers placing info or programs 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 advent of artificial intelligence (AI)-driven cyberattacks, brokers have a robust alternative to assist small companies get the fitting safety by an insurance coverage coverage.

In accordance with the Vacationers Threat 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.

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 enormous firms respectively.

Francis emphasised the significance of cyber insurance coverage as not only a monetary security web but in addition a important useful resource for companies to entry experience throughout a cyber occasion. Small companies are particularly susceptible as a result of they usually lack the sources and information obligatory 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 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 the next adoption price. I count on it to rise over time, however it actually must be greater already.”

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