Cybersecurity is Critical for SMEs

Cyber threats are no longer exclusive to large corporations; Swiss Small and Medium-sized Enterprises (SMEs) are increasingly targeted. Recent statistics reveal a significant number of SMEs have experienced serious cyberattacks, resulting in substantial financial losses. Alarmingly, many SMEs underestimate this risk and lack adequate security measures. This Expert Note highlights the critical need for SMEs to prioritize cybersecurity, emphasizing that it's an essential investment, not a luxury. 

It’s about surviving! By focusing on minimal security practices, SMEs can protect their valuable data, maintain customer trust, and secure their place in the digital economy.

The digital age has democratized technology, but it has also democratized cyber risk. SMEs, once considered too small to be worth targeting, are now prime targets for cybercriminals. Some explanations leading to this situation are:

• SMEs are less prepared and thus easier targets
• Cybercriminals are more professionally organized in different type of groups such as the ransomware providers, the affiliates (doing the actual attacks). There is a true commercial relationship between all actors. This allows them to scale and reach more potential victims
• You don’t need to be a target! – Automation – cybercriminals use automated tools to randomly reach out to more potential victims
• Everyone is next door – the reach of cybercriminals is unlimited as their targets are simply reachable online. 

All these elements lead to a fundamental change in how SMEs need to perceive and manage cybersecurity.

Cyberattacks on SMEs in Switzerland: A Deeper Dive

• Growing Threat 
   
  • This statistic highlights that the threat is not theoretical. Even in a relatively secure environment like Switzerland, a significant portion of SMEs are experiencing serious cyberattacks.
  • It also may be important to note that many attacks go unreported, which makes it very plausible, that the amount of actual cyberattacks is much higher.
  • This number should serve as a strong reminder that no SME is immune.

• Financial Losses (100% of affected SMEs suffer from financial losses): 
   
  • Beyond the immediate cost of recovering from an attack, financial losses can include:
  • Lost revenue due to downtime.
  • Expenses related to data recovery and system restoration.
  • Legal fees and regulatory fines.
  • Reputational damage, leading to lost customers and contracts.
     
• Underestimating the risk (50% of SMEs): 
   
  • Acknowledging the threat while believing it won't happen to us —is a major vulnerability.
  • SMEs often prioritize immediate operational needs over long-term security, leading to a reactive rather than proactive approach.

• Lack of preparedness (40% of SMEs):
  • A lack of a cybersecurity response plan (also called business continuity plan) means that when an attack occurs, SMEs are left alone and struggling, leading to a longer-than-could be downtime.
  • In a cyberattack, time is of the essence. Preparedness is key.

These losses can lead to a fatal damages to small organisation

Why SMEs need high-end cybersecurity: 

1. SMEs Hold Valuable Data: 
    
   • Intellectual property: Trade secrets, product designs, etc.
   • Supply chain information: Data that can be used to compromise larger partners.
   • Employee data: Sensitive personal information.
      
2. Cyberattacks Can Cripple Business Operations: Consider the impact of: 
    
   • Ransomware locking down critical systems.
   • Distributed denial-of-service (DDoS) attacks shutting down online services.
   • Data breaches causing reputational damage and customer loss.
      
3. Compliance and Customer Trust Matter: 
    
   • Regulations like GDPR (applicable to many Swiss businesses dealing with EU data) and nFADP (swiss new Federal Act on Data Protection) impose strict requirements for data protection.
      
4. Supply Chain Vulnerabilities: 
    
   • "Supply chain attacks" are on the rise. Cybercriminals target weaker links in the chain to gain access to larger organizations.
   • SMEs need to consider their security posture not just for their own sake, but also for the sake of their partners and clients.
      
5. Use your high cybersecurity preparedness as a competitive advantage. Demonstrating a commitment to cybersecurity can be a powerful differentiator.
    
   • It can lead to:
     • Increased customer confidence.
     • Stronger partnerships.
     • Access to new markets.
   • In a world with increased digital activity, security becomes a selling point.

Conclusion: how can we support you:

Therefore, by proactively investing in a multi-layered cybersecurity approach that includes employee training, robust security measures, incident response planning and data backup and recovery plan, Swiss SMEs can transform cybersecurity from a perceived expense into a strategic investment, safeguarding their assets, building trust, and securing a competitive advantage in the digital age.

Swiss based cybersecurity tailored for small organisations: as a first protection step, register to our Praethorus solution!