SMEs Are Underestimating Their Cybersecurity Risks

At a time when digital connectivity drives the economy, a new study has laid bare the sobering extent to which small and medium-sized enterprises (SMEs) are underprepared for cyber threats.

According to global cybersecurity provider Check Point Software, 60% of SMEs are potentially one successful cyberattack away from going out of business. This situation underscores these businesses' pivotal role in the world economy and the dire implications should they fall prey to ever-evolving cyber threats.

Representing 90% of global businesses and contributing up to 40% of the GDP in emerging economies, SMEs are the heart and economic engine of our society. However, they are also an attractive target for cybercriminals. Check Point Software's 2022 SMB Report revealed that only 22% of SMEs surveyed across the U.S., Germany, U.K., and Singapore felt adequately prepared for a cyberattack.

"Ransomware gangs were typically less organized than other groups up until a couple of years ago. Now they are becoming far more considered and steadfast in their approach, exploiting large-scale vulnerabilities and executing double and triple extortion to settle their demands," stated Muhammad Yahya Patel, lead security engineer at Check Point Software.

The report showed that many SMEs do not have internal security specialists or work with third parties, which means that their security measures are managed by non-specialist staff. In Singapore, two-thirds of the SMEs have not made their remote employees undergo additional security training. This raises grave concerns as human errors and negligence are often the ways hackers can penetrate a company's system.

The cybersecurity threats that SMEs face are more than mere data breaches or financial loss. With increasingly sophisticated methods like double and triple extortion ransomware attacks, the impacts are wide-ranging, affecting multiple supply chain layers. Cybersecurity is no longer just about technology but a critical factor in safeguarding a nation's economic stability.

SMEs must recognize the necessity of investing in cybersecurity infrastructure and training. Check Point Software has highlighted vital practices such as regular data backups, prompt device updates, user authentication, reducing the attack surface, deploying anti-ransomware solutions, and cybersecurity training and awareness.

"Hybrid working has complicated security for SMEs, fostering the need for a simple, consolidated security platform...they need a solution that offers full coverage protection without complicated installation and integration processes," said Rebecca Law, country manager, Singapore, Check Point Software Technologies.

Image credit: iStockphoto/K Neville