A new report from the Federation of Small Businesses (FSB) has found that small firms are unfairly carrying the cost of cyber crime in an increasingly vulnerable digital economy.
The report, ‘Cyber Resilience: How to protect small firms in the digital economy,’ suggests smaller firms are collectively attacked seven million times per year, costing the UK economy an estimated £5.26 billion.
Despite the vast majority of small firms (93 percent) taking steps to protect their business from digital threats, two thirds (66 percent) have been a victim of cyber crime in the last two years. Over that period, those affected have been victims on four occasions on average, costing each business almost £3000 in total.
Almost all (99 percent) of the UK’s 5.4 million small firms rate the internet as being highly important to their business, with two in three (66 percent) offering, or planning to offer, goods and services online. Without intervention, the growing sophistication of cyber attacks could stifle small business growth and in the worst cases close them down.
Mike Cherry, FSB national chairman, said: “The digital economy is vital to small businesses – presenting a huge opportunity to reach new markets and customers – but these benefits are matched by the risk of opportunities for criminals to attack businesses.
“Small firms take their cyber security responsibility very seriously but often they are the least able to bear the cost of doing so. Smaller businesses have limited resources, time and expertise to deal with ever-evolving and increasing digital attacks. We’re calling on Government, larger businesses, individuals and providers to take part in a joint effort to tackle cyber crime and improve business resilience.”
Mike Cherry added: “Small firms are understandably focused on building their businesses and creating the jobs which drive economic growth. The vulnerabilities of the digital world affects everyone and the responsibility for improving resilience should not be left to the group with least resource to do something about it.
“Security is important, but given that an element of risk will always be present when operating online, resilience must also be championed. Without a concerted effort to reduce cyber crime and improve resilience, small businesses could be at real risk.”