KNOWLEDGE HUB

SMEs often lack the resources or expertise to be Cyber smart, making them more vulnerable to cyber attacks.

We’ve all heard it many times before. We live in the digital age and every day we are moving toward an even brighter technological future. But there’s a dark side to digital. One which cyber criminals, scammers and hackers are exploiting and turning to their advantage.

KNOWLEGDE HUB

While SMEs like to think they are either too small or unimportant to become a victim of a cyber attack, research demonstrates otherwise

$39,000
‍
The average cost of a cyber attack in Australia for small businesses.

- ACSC Annual Cyber Threat Report 2022

60%

of SMEs go out of business within six months of suffering a cyber attack.
‍
- 2018 National Cyber Security Alliance

81%

of customers stop buying from a brand after a data breach.
‍

- 2019 Ping Identity Consumer Survey

500%

Ransomware attacks have increased since the start of the COVID-19 pandemic.
‍
- ACSC Annual Cyber Threat Report 2022

KNOWLEGDE HUB

4 reasons why SMEs are buying cyber insurance

Going digital has a dark side
While almost every SME now acknowledges the importance of being more digital, very few understand the risks involved or the dangers that are hiding just out-of-sight. In today’s hyperconnected digital world, it's no longer a question of 'if' a business will have to deal with a cyber attack, but 'when...'

A cyber attack can be a business killer
Many SMEs who suffer a cyber attack don’t end up making it. This is because a cyber attack can involve financial, regulatory, operational, legal and reputational costs which can quickly add up and be overwhelming if an SME doesn't have the support offered by cyber insurance.

Without cyber insurance, some businesses can't do business
Work from home requirements have dramatically increased the need for better cyber security measures. This has seen many large corporates and multi- nationals insist on their supply chain partners carrying cyber insurance as a necessary prerequisite for doing business with them.

Penalties being applied are now much bigger than before
At the end of 2022, The Australian Government increased the penalties for serious or repeated data breaches from $2.2M to whatever is higher; $50M, three times the windfall of the hack, or 30% of a company’s turnover. In NZ, if a business has a privacy breach that has caused or is likely to cause serious harm, it must notify the Privacy Commissioner. Failing to inform the Commissioner of a notifiable privacy breach can result in a fine of up to $10,000.

KNOWLEGDE HUB

Simple steps SMEs can implement to improve their cyber security

Use multi-factor authentication where ever possible.

Treat every email with caution and don't open email attachments from sources you don't trust or addresses you don’t recognise.

Ensure owners and employees are trained to recognise and deal with social engineering threats like phishing and phreaking.

Use an up-to-date virus scanner on all your computers.

Invest in data storage and automatically backup your files on a regular basis.

Make sure your wireless internet networks are password protected and secure. Keep software up to date, including your operating system. Turning on automatic updates can make sure you're always on the most current versions.