How Common are Cyberattacks on Business in the United States?
Back in 2017, we shared some startling statistics about cyberattacks on American businesses.
According to a survey of executives released by Hartford Steam Boiler Inspection & Insurance Co., more than half of U.S. businesses have experienced a cyber attack in the past year. A total of 53% of the 403 executives surveyed reported an attack, according to the online survey commissioned by the Hartford, Connecticut-based Munich Reinsurance Co. unit, conducted by Utica, New York-based Zogby Analytics.
But now we’re in 2021. How have things changed? We’re going to get to that in a moment. But first, let’s look at some of the other statistics from the 2017 report before we update you.
Cyberattacks on Businesses in 2017
Of those businesses, 72% spent more than $5,000 to investigate each cyberattack, restore or replace software and hardware and deal with other consequences, according to the survey.
A total of 38% spent more than $50,000 to respond. While 10% spent $100,000 to $250,000 and 7% spent more than $250,000, according to the survey.
The most common consequence of the cyber attacks was data loss, cited by 60%, followed by business interruption, cited by 55%.
According to the survey, the most common types of cyberattacks were malware, cited by 53%, followed by viruses, 51%; distributed denial of service attacks, 35%; ransomware, 29%; cyber extortion, 25%; and social engineering, 13%.
A total of 61% of the respondents purchased or increased their level of insurance coverage over the past year, with 56% of them purchasing cyber insurance for the first time, according to the survey.
Are Cyberattacks on Business as Common in 2021?
Now, here we are, almost halfway into 2021. How have things changed? Is a cyber attack on a business as likely now as it was in 2017? Unfortunately, cyberattacks have only become even more prevalent. Take a look at some of these recent statistics highlighting the importance of having an excellent cybersecurity system in place.
- The seven biggest cyberattacks in the first half of 2020 were the Nintendo Data Breach, Twitter Spear Phishing Attack, Easy Jet Data Breach, CAM4 Data Breach, Marriott Data Breach, Zoom Credentials Hack, and Antheus Tecnologia Biometric Data Breach.
- 64% of companies have experienced web-based attacks, according to a study by Fundera.
- That same report from Fundera also reports that cybercrime costs small and medium businesses more than $2.2 million a year. Additionally, the report shares that 60% of small businesses that are victims of a cyber attack go out of business within six months.
- 2020 saw a 424% increase in new small business cyber breaches
- Since the beginning of the pandemic in the United States, the US FBI reports a 300% increase in reported cybercrimes.
- Small organizations (those with fewer than 500 employees) spend an average of $7.68 million per cybersecurity incident.
On top of how shocking it is to hear about the cost of a cybersecurity breach for a small business, it is frightening to consider just how few businesses have protection in place against these attacks. According to Fundera, only one in four small businesses say they have the personnel to address IT security.
So, what do all of these statistics mean for you and your business? If nothing else, they reinforce the importance of having a solid cybersecurity system in place.
Secure IT Solutions For Your Business
CloudNexus is here for all of your cybersecurity needs with the IT solutions you need for peace of mind and security. Contact us today at 502-440-1380 and schedule an in-depth network vulnerability scan for free to find out where you stand.
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This article was first published in 2017, but was updated in 2021 just for you.