UK SMEs Underestimate Cyberattack Costs by £85,000, Study Finds

A recent study conducted by Sky Business has unveiled a concerning gap in the perception of financial risks associated with cyberattacks among Britain’s small and medium-sized enterprises (SMEs). The research indicates that UK SMEs significantly underestimate the financial damage a cyberattack can cause, by nearly £85,000 on average. This underestimation points towards a potential lack of preparedness against cyber threats.
The study highlights a stark difference in the estimated financial impact between SMEs that have not experienced a cyberattack and those that have. SMEs, which have not been victims of cyberattacks, anticipate an average loss of £39,633 for the entire downtime. In contrast, businesses that have been forced to shut down due to cyber incidents report an average daily loss of approximately £31,000.
Sky Business’s findings suggest that older enterprises, operating for more than twenty years, and microbusinesses, with one to nine employees, are particularly prone to underestimating the repercussions of cyberattacks. This underestimation underscores the need for better preparedness and awareness about cybersecurity across all SMEs.
Stacey Hill, Director of Sky Small Business Group at Sky Business, emphasized the critical nature of cybersecurity for SMEs. Hill pointed out that with SMEs previously attacked estimating substantial losses for each day of closure, cybersecurity should be a paramount concern. Additionally, the research identified the use of public unsecured Wi-Fi connections as a common factor in breaches, highlighting the need for secure connectivity, especially for businesses with hybrid and remote working arrangements.
Hill advocates for simple yet effective cybersecurity measures to protect businesses, their workers, and assets. Emphasizing that securing cyber connectivity is fundamental and should not be complicated, Hill’s comments point towards a proactive approach in safeguarding small businesses against potential financial losses due to cyberattacks.