The Rise of Cybercrimes on Australian Small and Medium Businesses
Current cybercrime landscape
Cyber-attacks on Australian businesses are rapidly increasing in frequency and sophistication. In fact, a study by the Australian Cyber Security Centre (ACSC) found that, on average, a cybercrime is being reported in Australia every 10 minutes.
Cyber-attacks are considered one of the greatest risks to small and medium businesses (SMEs) as they can significantly impact business operations. Many hackers view SMEs as an attractive target due to them having a perceived lack of resources to defend against attacks.
Supply chain attacks also continue to be an area of concern due to the extensive range of victims that can be reached through targeting a single service provider.
Ransomware, in particular, has become extremely harmful to businesses, contributing to 81% of financially motivated eCrimes globally. It’s a common myth that only large companies are impacted by ransomware, as a report conducted by Beazley in the United Kingdom found, 62% of the ransomware attacks in 2020 were on SMEs.
This form of cyber-attack can cripple IT systems, websites, customer data and payment systems. Therefore, it’s no surprise that there has been a 60% increase in average ransom payments globally, as businesses feel they have no choice but to agree to the demands of threat actors.
What is the average cost of a cyber-attack to an SME?
A 2021 survey completed by Hiscox, found that the average cost of a cyber-attack to US small businesses in the last 12 months was $25,612 USD. This is a significant amount of money for SMEs operating in a similar market landscape to Australia and correlates with Australian produced insights that found over 60% of SMEs don’t survive a cyber-attack or data breach.
According to Sophos, the average ransom paid by companies globally is $170,404 USD. However, if a business experiences a ransomware attack the potential costs extend beyond the price of simply paying a ransom.
Why is Cyber Insurance important?
Cybercriminals remain relentless and opportunistic in their approach to discover exploitive vulnerabilities in an organisation’s infrastructure. Also, as highlighted, these cyber-attacks can be incredibly costly and can place businesses of all sizes under major financial strain. It has never been more critical for businesses to take proactive measures to help manage these risks, including the implementation of cyber insurance cover.
A cyber insurance policy is an extremely valuable risk transfer tool for every business. Having cyber insurance cover can help protect your business’s reputation and finances and can help minimise any damage or disruption from the cyber-attack.
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Marsh is a leading cyber broker, and can provide our clients access to competitive rates and extensive insurance coverage. Please contact your broker today for a no-obligation quote.