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2022 SMB IT Security Needs Study Highlights & Contradictions

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Security firm Action 1 recently published the results of its 2022 SMB IT Security study after surveying 750 small and midsize businesses.Data Protection & Security

Key Findings and Contradictions of the Action1 SMB Report

It is no secret that perceptions about our security risks differ from reality.  Not surprisingly, some of the 2022 SMB IT security needs survey results contradict one another.

52% vs 65% vs 37%

52% of respondents acknowledge that they lack sufficient skills and technology to effectively protect against cyber attacks. But 65% believe the cost of protection is too high and 37% complain that security controls hurt productivity. Businesses clearly struggle to balance the security they need with the cost and the user experience. Often SMBs are presented with security solutions designed – and priced – for larger organizations. As employees use added security steps for everyday transactions (online banking, etc.), the overhead of security protocols is less intrusive.

63% vs 81% vs 40%

While 63% believe that their SMB faces a lower cyber risk compared to larger companies, 81% of respondents had at least one security incident within the past 12 months. 40% of SMBs had 2 or more incidents. Too many SMBs continue to have a false sense of security. Cyber criminals understand that is easier to hack 10, or even 100, small businesses than it is to successfully attack 1 large enterprise. And with current tools, cyber attacks are inexpensive to launch and manage.

Where the Security Risks Exist

40% vs 39% vs 34%

The most common forms of successful cyber attacks are password attacks (40%), ransomware or other malware (39%), and phishing (34%). Note that these forms of attack are not mutually exclusive.  One form of attack, malware for example, can be used to gather the information needed for a successful password breach.

63% vs 43%

Looking at root causes, 63% of SMB IT Security study respondents noted that attacks began with phishing.  Unpatched systems were the starting point for 43% of attacks. These numbers make sense as these attack vectors provide access to information that supports further attacks.

Who is Helping

96% vs 23%

The vast majority of SMBs rely on outside experts for help with their security needs.  93% of respondents use an IT firm for at least some of their IT security needs.  That said, 23% of small businesses are looking to replace their IT service providers in the coming year. While security is not the only trigger for changing providers, it is one consideration.

48% vs 33% vs 29%

SMBs responded that poor system performance (48%), system outages (33%), and long problem resolution times (29%) are the three primary reasons for switching service providers. Each of these issues relate to business interruptions.

2022 SMB Security Study Conclusions

Examining the SMB IT Needs Security Study results, we see three clear conclusions.

  1. Failing to recognize the risks leads business owners to under value security technology and services.  The cost to respond and recover to a single incident dwarfs the cost of reasonable protections.  For SMBs, the average successful cyber attack can disrupt business operations for 18 to 21 days at a total cost to recover exceeding $200,000.
  2. With 50% of employees working remotely, at least part time, individuals and systems are more exposed to attack. Physical security is no longer sufficient. SMBs need a security services designed to protect against the most common and the most costly types of cyber attacks.
  3. As an IT service provider, we must ensure that our services, first and foremost, do no harm.  While security protocols can introduce some inconveniences, our services cannot interfere with performance, availability, or reliability.

Next Steps to Improve Your IT Security

Step back and take a look at your security services and footprint.  Our Rapid Security Assessment is a quick and simple starting point to identify security gaps. You can also schedule a call with one of our Cloud Advisors to review your security and IT services.

 

Rules, Regulations, and Results

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Rules and RegulationsFor Small and Midsize Enterprises (SMEs), the regulatory landscape remains in a perpetual state of flux with changes originating at the Federal, state, and local levels. While some rules and regulations can severely impact your business’ operations, and profitability, many create requirements that you can easily satisfy at a nominal cost.

Three regulations with upcoming deadlines or increased enforcement include:

HIPAA

HIPAA compliance is a requirement for any organization that works with personal health information of individuals — not just medical offices and insurance firms. If you are sharing employee information about benefits, insurance coverage, medical leaves, or other items that involve personal health information (PHI), you have an obligation to protect the PHI. Failure to do so can result in heavy fines and, in a few instances, criminal charges.

Historically, HIPAA compliance has focused on medical practices, insurance, and brokers. We are starting to see audits of non-medical companies, along with fines for those not in compliance. 

Fortunately, you can protect PHI by focusing on the individuals that are authorized or likely to handle sensitive employee information.  By focusing on HR, payroll, and key executive and leadership roles, you can deploy services like message-level email encryption.

What to do:

  • For as little as $5 or $6 per user per month, you can ensure that specific individuals protect PHI and sensitive information while preventing accidental disclosure
  • Contact us for information about encryption, DLP, and other HIPAA solutions.

ELD

Starting December 18, 2017, all interstate trucks in the US must use an Electronic Logging Device (ELD) to track operations and required reporting.  According to the US Department of Transportation (USDOT), fewer than 1/3 of interstate trucks have installed ELDs as of mid-November. Failure to comply can result in heavy fines, impounding of vehicles, and disruption of delivery schedules.

While enforcement is not expected to impact small and midsize trucking firms until late spring or summer of next year, your business can still be at risk.

Here are a few things to note:

  • If you have your own truck(s), they may be classified or registered as Interstate Trucks, even if you only deliver within your state.
  • If you use third parties for shipping, their failure to comply can disrupt your deliveries if trucks are stopped or impounded, or if drivers are pulled off the road.

What to do:

  • Check your own vehicles:
    • Determine if they are properly registered as Interstate Trucks, or if they should be registered as such
    • If you do not have ELDs yet, please contact us for low cost, self-install ELDs with logging software subscriptions
  • Check with your shipper(s):
    • Confirm their trucks, those of their subcontractors, and any owner/operators are properly registered and have ELDs
    • If not, have them contact us for help

GDPR

Effective May 25, 2018, the European Union (EU) General Data Protection Regulation (GDPR) takes effect. While GDPR covers data protection and privacy for citizens of EU member states, treaties allow enforcement in action against US companies operating within the US.

If you have any personal data for citizens of EU member states, you are responsible for GDPR compliance.

GDPR means more than encrypting sensitive data.  GDPR includes processes and procedures for governance, including:

  • A named Data Protection Officer (DPO) responsible for oversight, compliance, and response to individual inquiries. The DPO role can be full time or part time, internal or contracted.
  • You must report suspected breaches within 72 hours of becoming aware of the issue.
  • You need to deploy privacy by design — any new system or change in systems requires primary consideration of privacy and information security.
  • You must be able to demonstrate that you mitigate risk, even in the absence of a privacy breach.

Fortunately for most SME’s the appropriate policy changes and the risk-mitigation technologies need not be expensive of complicated.

What to do:

  • Discuss GDPR with your team, and your legal counsel, to determine your required compliance
  • Provide training, education, and “cultural support” for a data privacy mindset within your organization
  • Review systems storing or processing personal information for security and privacy compliance
  • Select and deploy relevant data loss prevention (risk mitigation) solutions for your environment

Need help? Contact us for more information.