Two-Thirds of Small & Medium-Sized Businesses Would Close After Data Breach

October 3, 2017, Written By Bill Hardekopf
Two-Thirds of Small & Medium-Sized Businesses Would Close After Data Breach

If faced with a serious data breach, 66% of small and medium businesses (SMBs) would either shut their doors forever or close for at least a day, according to recent research from VIPRE. The shutdown would happen whether data or systems were compromised.

The study surveyed the IT managers of 250 small and medium businesses, and found these businesses are already dealing with breaches. Nearly one-fourth (23%) said they face an attack every day.

Even with these attacks, many do not have the tools at their disposal to prevent and track these attacks. Two-thirds of those interviewed (68%) had to deliver security reports to upper management, but 47% said they have to collect data manually. Only 41% have access to an online dashboard.

Since attacks are on the rise, spending on security is as well. TechRepublic reported 63% of SMBs are increasing security spending but still experiencing breaches. Many tech experts believe cloud-based security is the solution to these attacks.

“The surge in cloud-hosted and as-a-service anti-malware solutions is undeniable, and our partners and business users are increasingly looking to move services to the cloud to capitalize on various benefits like decreased cost, increased performance and access from anywhere,” said Usman Choudhary, Vice President of Product Development at VIPRE.

The information contained within this article was accurate as of October 3, 2017. For up-to-date
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About Bill Hardekopf

Bill Hardekopf is the CEO of and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
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