Cyber Attacks are Sinking SMEs: Here's Why You Can't Make The Mistake of Mishandling Your Customers' Data
As we’re sure you’re aware, with the implementation of the GDPR and the number of high-profile data breaches that have been met with such strong public reaction, now is not the time to be caught out slipping up with your customers' personal data.
Now that the public has more rights regarding the details of their personal data they are more likely to act against a company that mishandles it.
It is worth noting that in the past year, 42% of all cyber-attacks were against small businesses. Onwards from this, 60% of small businesses who experienced cyber-attacks then went onto fail within 6 months.
Cyber-attacks pose a serious threat to SMEs that do not have the correct security infrastructure or insurance in place. While insurance will not help you if you don’t have the aforementioned security in place, it can save your bacon if a breach were to occur after taking reasonable measures to prevent it. This makes it all the more alarming that, according to the 2018 Cyber-Security Breaches Survey, only 9% of businesses and 4% of charities have a specific cyber-security insurance policy.
The 2018 Information Commissioner’s Office (ICO) Information Rights Survey revealed a wide range of public opinions on the way organisations use their personal data. These were their main findings:
Overall, trust has improved - Compared with 2017, the 2018 survey revealed that people’s trust in companies storing and using their personal data has increased from 21% to 34%. Unfortunately, despite this change, the amount of people that are still untrusting of companies with their data remains higher with 37% saying they have low trust and confidence. This is down marginally from last year’s 38%.
Accountability – It was found that 78% of people agreed that if a company/organisation is affected by a data breach and their personal information was lost or stolen it should be the company/organisation that should be held responsible for the loss.
GDPR – The survey made it apparent that the widespread awareness of the GDPR was inconsistent with 45% of the public either having never heard of the GDPR or only having heard of it but not knowing anything about it. However, it found that 75% of the public agree that it is important that their personal information is protected when they share it with a business.
Technology Troubles – A key finding was that the public is divided on whether or not organisations protect their personal data from technology risk including being stolen by criminals. This is a concern for nearly three-quarters of the public.
While it’s positive that there have been improvements in overall trust and confidence in the way organisations store and use their data, more of the public lean towards distrust. With the majority of people ready to point fingers at the company/organisation, playing fast and loose with security and insurance could destroy your reputation and your business.
You can read the ICO survey here.
And the 2018 Cyber-Security Breaches Survey here.
If you’re concerned about your cyber security, please visit Cyberguru.co.uk for more information on what cover’s available and get your instant free quote!