Joe Phelan, money.co.uk business credit card says:
“New research from the Association of British Insurers (ABI) has revealed a stark reality: despite being modest in size, SMEs face severe exposure to cyberattacks – and many aren’t taking advantage of cyber insurance, or adequate digital protection, to mitigate the potential risks and consequences. This cyber protection gap makes SMEs far easier targets for cybercriminals.
Cybercrime has cost British businesses £44 billion in lost revenue over the past five years, yet many SMEs still rely on basic security measures. Just three-fifths (61%) use antivirus software, and only around half (55%) have network firewalls. With cyberattacks growing in frequency and sophistication—BT now detects 2,000 potential cyber threats every second—every lapse in security can be devastating.
According to the UK government’s 2024 Cyber Security Breaches Survey, half of all businesses experienced a cyber breach or attack last year. And, with 5.6 million SMEs generating over £2.6 trillion in turnover and representing 99% of UK businesses, their vulnerability is concerning.
New government proposals are aiming to disrupt cybercrime, including bans on ransomware payments by public sector bodies and mandatory incident reporting. For SMEs, however, the message is clear: no business is too small to be a target. A single breach can result in financial losses, reputational damage, and loss of customer trust.
So, what can small business owners do?
First, it’s crucial to acknowledge that investing in cybersecurity isn’t a luxury – it’s a necessity. Here are some key steps SMEs should take:
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Implement basic security measures: Use reliable antivirus software, network firewalls, and ensure regular system updates.
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Consider cyber insurance: This can provide an additional safety net, helping mitigate the financial impact of a cyberattack.
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Stay informed: Continuously educate yourself about evolving cyber threats and best practices.
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Be proactive: Regularly review and strengthen security protocols to protect your business operations.
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Build trust: Strong cybersecurity measures not only protect your business but also reassure customers and partners.
In a world where even the smallest business can be a lucrative target for cybercriminals, the time to act is now. All SMEs must rethink their cybersecurity strategies, adopt robust protection measures, and consider cyber insurance as an essential part of their overall risk management.
The stakes are high, and the cost of inaction could be far greater than the investment in protecting what you’ve worked so hard to build.”
