If you are running a small business, the
last thing you want to have is a data breach. Big corporations are often able
to recover from cybercrime, but this is not the case with the majority of
smaller companies.
The latest small
business statistics show that 45% of SMBs only invest in CRM
when it comes to software. In other words, these companies do not invest in
data recovery plans at all!
Why is this approach dangerous and risky?
Let's take a closer look at the position of small businesses in the digital world.
How Many Cyber Attacks Target
Small Businesses?
Often, business owners make the classic
mistake of thinking that small companies are not an attractive target for
cybercriminals.
However, data loss statistics reveal that
this type of thinking is misleading. And dangerous, as well.
For instance, the stats show that as many
as 43% of cyberattacks in the US target small businesses. Experts also claim that
startups might be the favorite target of digital villains.
The reason for this is easy to see-not
enough investments in data recovery strategies.
So, what type of consequences can data
breach have on small businesses?
Adverse Effects of Data Loss
If your SMB is not well-equipped to deal
with the consequences of a data breach, there is a chance that the company will
not survive for long.
Yet, as much as 87% of executives believe
that their business will not be attacked. Nevertheless, data breaches happen more
often than you might think.
As a result, they have the following
consequences:
· Loss
of revenue
No matter if it is a malware or a
ransomware attack, your profits will take a hit. In other words, the ROI will
reduce, which could trigger a dangerous chain of events.
· Attorney
fees
In most cases, you will have to consult
with a lawyer about the consequences of a data breach. So, prepare yourself
mentally for writing a big, fat check to your favorite attorney.
· Fines
and penalties
Depending on the state, you may have to
face penalties in case of a data breach. Of course, things could get even worse
if you did not comply with the regulations in the first place.
· Customer
distrust
Last but not least, compromised data will
affect your relationship with the clients. According to small business
statistics, 90% of owners value the emotional connection between them and the
consumers more than anything else. So, if the clients lose trust in your
services, the adverse effects of a data breach could last for a long time.
Why Should You Invest in Data
Recovery Plans?
As you can see, the consequences of a
data breach can cripple your business. What's more, plenty of companies fail to
recover after their cyber defenses go down.
For that reason, it is essential to be
proactive and prevent cybercrime from happening. In a way, it is better to be
safe than sorry when it comes to data loss.
Precautionary measures can serve as a
barrier for bad actors who are trying to infiltrate your servers and data
repositories.
It is in your best interest to implement
data recovery plans. By doing so, you will minimize risks and increase the
protection of sensitive data.
No matter if you are safeguarding the
client's personal information or intellectual property, data encryption could
prevent the incidents.
On top of that, the implementation of
data recovery will make your business compliant with national regulations.
As we said earlier, the regulations in
this sector can lead to fines and penalties if you fail to follow the necessary
procedures.
How to Choose the Best Data
Recovery Software for Small Businesses?
So, if you decide to install a data
protection system, your business will benefit in more than one way.
However, it is essential to choose the
right software for your needs. After all, data recovery plans come in all
shapes and sizes. Not every company will have the same requirements, so it is
crucial to select the one that suits your business.
For instance, it is imperative to find
software that relies on a multi-faceted approach. What does this mean? Allow us
to explain.
Well, such software would protect several
segments of your IT infrastructure. Nowadays, cloud-based backup is a must, and
the same applies to anti-virus protection.
On top of that, high-quality software
should come with automatic detection of suspicious activity.
In other words, the program should scan
all areas of your operations to prevent fraudulent or malicious attacks before
they infect the entire system.
Of course, dedicated customer support is
also a must-have in this day and age. The support staff should be available
24/7, and they should react to your calls within seconds.
How Many SMBs Invest in Data
Recovery?
Despite all of these things, six out of
ten small businesses do not have a data recovery plan in place.
Likewise, only three in ten employees
will receive cybersecurity training. Thus, it comes as no surprise to see that
only 14% of small businesses can defend themselves from malicious attacks.
We already said that almost 90% of
executives fail to understand the importance of data protection.
As a result, small businesses in the
United States incur around $200,000 in losses yearly due to compromised data.
Of course, human errors are the primary
reason for data loss. Yet, it is clear that recovery strategies would prevent a
significant number of these events.
Final Thoughts
In conclusion, precautionary measures are
the best course of action for small businesses in the US. By implementing a
data recovery plan, companies can decrease the risk of devastating data losses.
Recovery protocols are nothing to be
scared of, and most of them are straightforward and easy to follow. With a
little bit of training, your employees can be up to speed in no time.
After all, there is no use in crying over
spilled milk. Therefore, be proactive and start using a system that will
protect your business from disastrous data breaches so that you can focus more
on your business growth strategies.
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About the Author
Toronto born, puppy-lover and passionate blogger. Traveling the world and proving people wrong is my specialty and hobby. Love reading up on the newest trends and have a passion for anything creative and trending.