Data loss events are a huge risk for any company, but the aftermath of a data breach can be especially problematic for SMBs, a recent study by Bank of America Merchant Services concluded.
The survey, which included 522 small businesses and 409 consumers in the US, questioned consumers and small businesses about the cybersecurity risks underscoring today’s digital environment. In response, one in five SMBs reported a data breach in the past two years, a 17% increase in two years. Moreover, 41% of small businesses endured a data breach that cost the company more than $50,000.
This financial component is especially troubling for SMBs, which don’t have extravagant resources that large corporations can use to hasten their recovery efforts. Making matters worse, 30% of consumers indicated that they would never return to a small business that endured a data breach, a 20% increase year-over-year.
These trends are taking place as SMBs are increasingly moving online. 51% of SMBs run their own websites, and 70% have some form of e-commerce component to their business.
In total, it’s evident that SMBs have every reason to prioritize data security protocols as a foundational element of a successful, sustainable business model.
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