A few of the highest profile cyberattacks on the U.S. in recent times are alleged to have originated in Russia, including the 2021 attack on the Colonial Pipeline — the biggest fuel pipeline within the U.S. — the SolarWinds attack in 2020, and the 2016 hacking into the Democratic National Committee.
Since Russia invaded Ukraine in January of this yr, the U.S. government has warned of an elevated risk of a cyber attack, which Russia could use to try to attract the U.S. right into a direct conflict. Despite the increased threat, small business owners aren’t any more concerned a few potential cyber attack — and no more prepared to cope with one should it occur — than they were a yr ago.
The CNBC|SurveyMonkey Small Business Survey checks in with greater than 2,000 small business owners every quarter to know their outlook on the general business environment together with their very own business’s health. In the newest survey, just 5% of small business owners reported cybersecurity to be the most important risk to their business without delay.
Quarter over quarter, the number saying cybersecurity is their top risk has held regular and is the bottom priority out of the five surveyed. In the identical time period, the variety of small business owners who say inflation is the most important risk to their business has increased from 31% to 38%, holding the highest spot by way of risk. The numbers reporting supply chain disruptions and Covid-19 as the most important risk have each declined.
This latest round of the Small Business Survey is the primary to field after the Russian invasion into Ukraine, though the international events have had no perceptible impact on small business sentiment within the U.S.
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Cybersecurity has consistently ranked as an afterthought for many small business owners when making risk assessments.
CNBC|SurveyMonkey Small Business Survey Q2 2022
While it is not their top worry, almost 4 in 10 small business owners say they’re very or somewhat concerned their business will likely be the victim of a cyber attack inside the following 12 months. This trend, too, has held regular for 4 straight quarters, with no change in any respect because the Russian incursion into Ukraine.
The smallest of small businesses are the least concerned about cyber attacks: just 33% of homeowners with 0-4 employees are concerned about experiencing a cyber attack inside a yr, compared with 61% of small business owners who’ve 50 or more employees.
Few small business owners rate cyber threats at their top business risk, and fewer than half consider it to be a priority, but nevertheless a majority express confidence of their ability to answer a cyber attack. Just as in previous quarters, about six in 10 small business owners are very or somewhat confident that they might quickly resolve a cyber attack on their business if needed.
This general lack of concern amongst small business owners diverges from the sentiment amongst most people. In SurveyMonkey’s own polling, three quarters of Americans say they expect businesses within the U.S. to experience a significant cyber attack inside the following 12 months.
Consumers’ expectations for cyber-preparedness vary from industry to industry. A majority of individuals in most people say they believe that their banks (71%), their health-care providers (64%), and their email providers (55%) are equipped to guard them from cybersecurity threats; alternatively, just 32% expect the social media platforms they use to be prepared.
We see similar leads to the small business realm. Small business owners within the finance and insurance industries are among the most confident that they might have the opportunity to quickly reply to a cyber attack; greater than seven in 10 say they might have the opportunity to combat an attack. Amongst those in the humanities, entertainment, and recreation industry that number falls to 50%.
That is necessary, because any cyber attack – even one which is quickly resolved – can have a long-lasting negative impact on a business. Consumers would moderately not be the victim of a cybersecurity attack themselves, and so they are wary to trust businesses which were compromised up to now. In SurveyMonkey’s polling, 55% of individuals within the U.S. say they might be less more likely to proceed to do business with brands who’re victims of a cyber attack.
For small businesses to actually be prepared, they should take more concrete steps. Fewer than half each say they’ve installed antivirus or malware software, strengthened their passwords, or backed up files on an external hard disk to guard their business against potential cyberattacks. Only a 3rd each have enabled automatic software updates or enabled multi-factor authentication. Only one quarter have installed a virtual private network (VPN).
These are basic actions that almost all corporations in corporate America would consider to be table stakes, but they’re admittedly far more costly to implement in a small business environment. Small businesses that fail to take the cyber threat seriously risk losing customers, or far more, if an actual threat emerges.