Midmarket companies face unique cybersecurity challenges distinct from those encountered by small businesses or large enterprises. Their expanding technological footprints aim to match those of bigger competitors, opening new avenues for cyber-attacks. Marcela Denniston from Spiceworks highlights the significant increase in cyber-attacks targeting these businesses, emphasizing the urgent need for proactive cybersecurity measures.
Frequent cybersecurity threats encountered by midmarket companies include data breaches, ransomware attacks, phishing attempts, and malware threats. These issues demonstrate the range of risks midmarket companies face in the digital world.
A study by Coro indicates that mid-market organizations are now 490% more likely to experience a security breach than in 2019. This heightened risk threatens their operational continuity and has significant economic and reputational impacts. The FCC identifies cybersecurity as “one of the most serious economic and national security challenges we face,” stressing the importance of stronger defenses against these threats.
Many cyber-attacks on midmarket companies utilize phishing emails or social engineering tactics, highlighting the need for better defenses against manipulative techniques and cyber threats.
Cyberattacks can lead to immediate financial losses and long-term damage. According to Kaspersky, “60% of small businesses that fall victim to an attack shut down within six months after the breach.” While this statistic pertains to small businesses, mid-market companies face similar challenges due to limited cybersecurity resources.
Proactive cybersecurity is essential for midmarket companies. By adopting robust cybersecurity measures, including incident response plans, they can mitigate their exposure to cyber threats. These measures encompass risk assessments, employee training, and the deployment of advanced security technologies. This proactive approach helps prevent financial and reputational damage and enables companies to navigate the digital landscape securely.
Implementing cybersecurity measures also offers strategic benefits. Companies that invest in cybersecurity protect their assets and customer data, gaining a competitive edge by demonstrating their commitment to security. This commitment reassures partners, insurers, and customers. In an era of evolving cyber threats, emphasizing the need for a small business information security policy and cybersecurity policy for small business, midmarket companies must choose to invest in cybersecurity proactively.
Essential Cybersecurity Practices for Midsize Businesses
Midsize businesses encounter a distinct cybersecurity challenge: balancing limited resources with the need for robust defenses. While their resources may not match those of larger corporations, they face equally severe threats. NetDiligence notes that small-to-medium-sized businesses (SMBs) are just as susceptible to cyber attacks, with 61% targeted in 2021. This statistic underscores the importance of implementing advanced security measures.
Implementing strong password policies is a critical initial step. Unfortunately, the mindset of ‘not much to steal’ in small business information security policy is still prevalent among small business owners, underestimating today’s cyber threats. As Cox Blue suggests, utilizing strong, complex passwords along with regular updates and multi-factor authentication (MFA) can significantly enhance security. MFA, in particular, is highly effective, blocking 100% of automated bot attacks and reducing the likelihood of hacks by 99%, according to Microsoft.
Data encryption is imperative. All sensitive data should be encrypted, ensuring data protection both in transit and at rest. This guarantees that if accessed by unauthorized parties, the information remains unreadable. Securing network connections with updated firewalls and VPN services for remote access is also vital.
Employee education and training form the cornerstone of cybersecurity for companies. The Federal Communications Commission (FCC) recommends maintaining clean machines with up-to-date security software, web browsers, and operating systems as a primary defense against online threats. Additionally, training staff to recognize phishing attempts and promoting secure password and wi-fi security practices helps mitigate vulnerabilities.
The financial impact of cyber attacks on SMBs is substantial. The average data breach costs businesses with fewer than 500 employees approximately $2.98 million. With an average cost of $164 per breached record, SMBs lose an average of $25,000 to cyber attacks. These figures underscore the importance of investing in cybersecurity as both a protective measure and a financially wise decision.
While these practices form the foundation of cybersecurity for midsize businesses, they should be part of a broader, adaptive security strategy. This strategy needs to evolve with new threats and technological advancements. Cybersecurity is not a one-time task but an ongoing process of improvement and adaptation. With cyber attacks causing significant financial damage, it’s crucial for SMBs to strengthen their cyber defenses.
