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Small and medium-sized enterprises (SMEs) are facing significant cybersecurity challenges due to increased remote work and growing cyber threats. The lack of cybersecurity budget and skills, combined with the rise in cyber-attacks, can significantly impact SMEs' competitiveness and even compromise the value chain they are part of.
Small and medium-sized enterprises (SME) are the new big target for cyber attacks, hence they have to be more vigilant than ever when it comes to protecting their data and operations. Cyber criminals are becoming increasingly sophisticated in their methods, and SMEs must be prepared for the worst. However, 68% of them have no systematic approach for ensuring Cybersecurity. As small and medium-sized enterprises are the backbone of the EU's economy, representing 99% of all businesses in the EU and employing around 100 million people, they serve both as enablers for the digital transformation and as a core element of the EU social fabric.
60% of SMEs who were victims of cyber attacks did not recover and shut down within 6 months
ENISA interviews during the pandemic identified the most common cyber incidents as ransomware attacks, stolen laptops, phishing attacks and CEO fraud. Of the SMEs, ENISA surveyed, 90% stated that cybersecurity issues would have serious negative impacts on their business within a week of the issues happening, with 57% saying they would most likely become bankrupt or go out of business.
According to a report released by SonicWall, over 300 million ransomware attacks were observed in the first half of 2021, surpassing 2020’s total of 302.73 million. It is no longer a matter of if a company will face a breach, but rather when the attack will occur and how severe the security breach will be. Lloyd’s of London has estimated the cost of cybercrime to business to be an alarming $400bn a year, and Mario Greco, chief executive at insurer Zurich, recently declared that cybercrime is the risk which must be watched out for. Insurance executives have been increasingly vocal in recent years about the systemic risks posed by cybercrime, as this is a challenge for the industry to provide adequate coverage. Companies have been developing increasingly sophisticated cyber defence systems to protect their assets from cybercriminals, and insurance companies have also been offering a range of cyber insurance policies to help businesses mitigate the cost of cybercrime. However, the cost of cybercrime is still rising and businesses must remain vigilant in order to protect themselves.
In this market situation, we will present how SMEs can navigate the current cyber security landscape and discuss the steps they can take to protect themselves from cyber-attacks. We will also look at how insurers can help SMEs mitigate the cost of cybercrime and create a more secure environment for their business. By taking the necessary steps to protect their data and operations, SMEs can prevent serious consequences and create a safer online environment for their business.
Venture funds, such as a16z, are increasingly investing in software security solutions, recognizing the growing importance of cybersecurity in today's digital age. These funds are focusing on investing in startups like Trickest, Very Good Security and HP Wolf Security that provide innovative solutions, such as endpoint security , data security, and compliance infrastructure. This investment trend is expected to continue as the need for cybersecurity solutions continues to grow, particularly for small and medium-sized enterprises who may lack the resources to develop their own cybersecurity programs.
Against the backdrop of a complex and growing cyber threat landscape, where 57% of businesses now assume their IT security will become compromised, businesses are also waking up to the fact that one of the biggest chinks in their armor against cyberattack is their own employees. In fact, 52% of businesses admit that employees are their biggest weakness in IT security, with their careless actions putting business IT security strategy at risk. This is why companies, such as HacWare, are trying to address, as their first target, business’s employee, in order to help them avoid cyberattacks.
Providing companies with insurance coverage for cybersecurity attacks is one of the most interesting trends we are seeing, it is indeed to become able to use the data collected through the software to better understand and underwrite the risks facing SMEs. Insuring companies against damages caused by cyberattacks such as business interruptions, liabilities and service costs is becoming one of the most wanted features among SMBs AFCL departments. Players such as At Bay and Coalition are leading the market through this new wave.
We strongly believe that the Mediterranean market for SMEs' security is still hugely underserved. Although many players are trying to address this problem, the growing needs of SMEs are so difficult to tackle that we will see a lot of new companies entering and breaking into the market. These could range from general security solutions and cyber insurance players to a combination of both.
We are pretty sure that innovation is needed and we are looking forward to working on it. This is why we can't wait to hear your thoughts and feedback on what we can expect from cybersecurity in the coming months. We are always ready to venture together, so please don't hesitate to reach out here and schedule a chat with our own team!