Study Confirms that Size Matters When it Come To Cyber Security

Study Confirms that Size Matters When it Come To Cyber Security

With the exact toll of the cyber attack on JPMorgan still looming and the White House and Wall Street watching very closely, we are reminded daily about the importance of cyber security. October is National Cyber Security Awareness Month, which makes it an excellent time to evaluate your company’s prevention and response strategies. If you run a small business, stepping up your efforts to address cyber attacks may be particularly important, according to a new study.

Earlier this month, PricewaterhouseCoopers released the results of its Global State of Information Survey 2015, which surveyed nearly 10,000 business and cybersecurity leaders in more than 154 countries. Not surprisingly, the report revealed that cyber crime is on the rise, with security incidents increasing 48 percent over 2013 figures. On average, there are 117,339 incoming attacks each day, according to the report. Cyber attacks are also becoming most costly. The number of respondents reporting losses of $20 million or more also nearly doubled in 2014.

While cyber attacks are growing in all sectors, spending has failed to keep pace. PricewaterhouseCoopers found that companies with revenue of less than $100 million actually decreased security investment by 20 percent from 2013. Meanwhile, medium-size businesses (revenue of $100 million to $1 billion) and large companies (revenue greater than $1 billion) increased their security spending by 5 percent.

According to Gen. Keith Alexander, former director of the National Security Agency and cofounder of IronNet Cybersecurity, the findings make sense.

“If you think about it, there are big companies that can afford big cybersecurity teams, have the funding to really pay for them; then if you’re midsized you can afford to have a midsized team, or less. I call it the economy team,” he said. “If you’re small, you know what cybersecurity is, and you wish you had some.”

PricewaterhouseCoopers’ latest report highlights how challenging it can be to keep up with growing cybersecurity threats, particularly for smaller businesses. Unfortunately, hackers target companies of all sizes. Insiders, such as disgruntled workers, are also just as likely to pilfer intellectual property from a medium size employer.

Given the growing risks and high costs of cleaning up after an attack, it is imperative to find cost-effective solutions. For simple tips that can enhance your data security, please check out “Tips for Protecting Your Company Data.”

If you have any questions about this post or would like to discuss the issues involved, please contact me, Fernando Pinguelo, or the Scarinci Hollenbeck attorney with whom you work. To learn more about data privacy and cyber security, visit eWhiteHouseWatch (http://ewhwblog.com).

If you have any further comments or questions regarding cyber security, feel free to write us in the comment section below.