What Small Business Needs to Know About Cyber Crime

March 5, 2008 By Mary White

Cyber Crime is an important consideration for small business owners. If you own your own business, you need to be aware of the very real risk cyber crime poses to your business, as you need to be diligent in protecting yourself, your employees, and your customers.   Ron Teixeira, Executive Director for the National Cyber Security Alliance shares his insight regarding the risks of cyber crime for small business owners.

Why is cyber crime an important consideration for small business owners?

High profile data breaches have dominated the news and give the perception that hackers only target large corporations. The reality is that cyber criminals are increasingly targeting small businesses because it’s perceived that small businesses don’t have the know-how, security technology and motivation to secure their computers and data, making them easier targets.  

The National Cyber Security Alliance is teaming up with partners like Capital One to make small business owners aware that cyber crime is an ever-growing threat and needs to be given important consideration for the following reasons …

1) Cyber security incidents can cause real losses small businesses can’t afford.
Cyber criminals and hackers cost businesses real money, according to a Computer Security Institute (CSI) study released last October. In 2007, U.S. companies lost an average $350,424 a year due to cyber security incidents. This is double the average losses reported in 2006 ($168,000).  Unfortunately, cyber crime is a growth industry netting billions of dollars every year, so the likelihood is that cyber criminals will continue to seek out victims, especially those who are perceived as easy targets.

2)  Data breaches could expose a small business to liability and erode consumer trust. The federal government and some states require companies to take reasonable efforts to secure their customers information, and notify their customers if their sensitive information could have been stolen during a data breach. Violating these laws could expose companies to government action and, in some cases, civil action. 
In addition, cyber security is good business. Consumers are starting to penalize and/or reward businesses based on their cyber security reputation. According to a recent Javelin Study, 85 percent surveyed said they would increase their shopping at a store known for its good cyber security practices, whereas only 20 percent of consumers said they would continue shopping at a store that had a data breach.  

3) We want small businesses to become part of the solution, not part of the cyber crime problem. Lastly, small businesses could become part of the cyber crime problem instead of part of the solution. Cyber criminals need vulnerable and unsecured computers and networks to help them carry out their criminal activity. Phishing, cyber attacks and even distribution of illegal communications (such as child pornography) are mostly carried out by something called a “botnet,” a network of computers secretly broken into and remotely controlled by hackers.

According to the Federal Bureau of Investigation, they have identified over 1 million computers in America that have been broken into and used by hackers to carry out cyber crimes. These hacked computers were mostly located in American homes and small businesses. 

By creating a “culture of security” within a small business, they’ll better protect businesses bottom line and be less likely to incur liability and become part of the cyber crime solution. Cyber security is good for business and helps prevent cyber crime and cyber attacks on customers, fellow businesses and our country. 

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