Nearly every company relies on the internet for its business operations, which means almost every company is at risk for a cyber-attack. In last week’s blog post, we discussed why Cybercriminals are targeting SMBs, but what are the consequences of falling victim to a cyberattack or data breach for SMBs?

Downtime

After a cyberattack, an SMB is likely to face significant downtime, which means their employees cannot do their jobs. While one can expect revenue to take a substantial hit from downtime, employee productivity usually is the most significant consequence. Employers are still required to pay their employees, they may be missing deadlines, and downtime may cause excess stress on their employees.

The cost of downtime = minutes of downtime x cost per minute.

Damage to hardware 

In the event of a cyberattack, malware, or data breach, not only is your data at risk, but it can also cause damage to your hardware such as PCs, Servers, and more. In addition, the repair or replacement of hardware can be very costly.

Fines and penalties

Legal and regulatory requirements seem to be constantly changing, which can be very overwhelming for a business owner. However, business owners must comply with these rules and regulations, and when they don’t, they are subject to fines and penalties costs.

Damage to reputation and loss of customers

When a company falls victim to a cyberattack, their customer data is often compromised, leading to a loss of customer trust, which leads to customers taking their business elsewhere. Data breaches also hurt attracting and obtaining new customers when the news is public.

High costs

In the event of a cyberattack, an SMB is likely to experience downtime, damage to hardware, fines and penalties, damage to reputation and loss of customers, and more. Each of these consequences has its own cost, and sometimes it is enough for a business to close its doors for good. Forbes states that the average cost of a single data breach on an SMB is $149,000. Additionally, 76% of SMBs have experienced a cyberattack in the last 12 months.

We’ve said it before, and we will say it again: It is no longer a question of if your business will be the target of a cyberattack, but when. Can you afford the consequences of a data breach?

Working with a Managed Service Provider can help you better secure your network and prevent cyberattacks from happening. To learn more about our managed services, visit our website.