Cyber attacks on small businesses continue to rise: Are you protected?
You may think it’ll never happen to you. You read the news, hear about stories of a friend of a friend, but you never think that you’ll become a cautionary tale— that’s where you’re wrong. Cyber attacks on small businesses in Canada are on the rise, and you need to be prepared for this risk. There are ways you can safeguard your business from cyber breaches, but it’s also important to know how these attacks could you impact you. This article looks at some of the effects of cyber hacking on small businesses and provides advice on how to protect your business from this type of risk. There is a large misconception among small business owners that cyber hackers are only interested in large corporations. The truth is that 54% of email scams actually target small businesses. Small companies tend to be easier to hack because they often lack the resources and protective barriers that larger ones have to fend off cyber hackers. 54% of email scams actually target small businesses. On Friday May 12, 2017, a worldwide cyber attack took place and affected an estimated 300,000 machines across 150 countries. WannaCry ransomware, the malicious software behind the attack, was able to hack Britain’s National Health Service, the U.S. courier service FedEx, Germany’s national railway and government agencies all over the world. Here in Canada, the University of Montreal saw 120 computers affected by the ransomware and the Lakeridge Health hospital system in Oshawa also suffered at the hands of WannaCry. Once it’s gained access to a network, WannaCry uses encryption to restrict access to anyone else, and demands a ransom payment of $300 US. According to John Proctor, the vice-president of cybersecurity for CGI, 30% of the company’s clients were at risk of being attacked by WannaCry because they were using older operating systems, such as Windows XP. Microsoft had released a patch for the problem, but because these companies tend to be small in size, they don’t typically have a security provider to keep them informed on these sorts of updates. This can be particularly dangerous considering Canadian companies are currently facing an increasing number of cyber attacks. 30% of the company’s clients were at risk of being attacked by WannaCry because they were using older operating systems. Similarly, The Guardian reported on a small business based in Lancashire, England that was forced to pay a ransom in exchange to regain control of their company data from cyber hackers. Mark Hindle, the managing director for the small company, admitted to The Guardian that their company was completely unprepared for a cyber attack due to their lack of knowledge and awareness on this type of risk. This mentality isn’t uncommon in the small business world, but it can be extremely dangerous. A recent Symantec Internet Security Threat Report indicates that the rise of cybercrime shows no signs of slowing down. Some notable statistics from the 2016 report include: One in every 131 emails sent last year were malicious, the highest rise in five years. To avoid becoming a cautionary tale, it’s important to protect your business from the threat of cyber attacks. Here are five easy ways to safeguard your company. You know that sense of panic when you can’t find your smartphone, or you drop it on the sidewalk? Falling victim to a costly cyber breach feels infinitely worse. That’s why we put together this cyber breach white paper for you. From reading this quick and easy white paper, you’ll learn the basics about cyber breaches, how they can impact your business, how to recover from a cyber breach, and how cyber event expense insurance can help protect your business and your bottom line. You simply never know what could happen in the digital world, so ensuring your business is protected and covered in the event of a loss is imperative. Unfortunately, the misconceptions surrounding cyber liability insurance tend to deter business owners from seeking coverage. Beyond the financial ramifications, security and data breaches can severely impact your reputation with your clients and customers. More and more business owners are adapting to the increased threat of cyber attacks. A recent study done by the Council of Insurance Agents & Brokers found that nearly 40% of U.S. polled policyholders have recently increased their cyber liability coverage. One of our experts can help you determine what type of coverage you should be seeking for your small business. You’re more of a target than you may think.
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This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information. Terms, conditions and exclusions apply to coverage. See policy for details.