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North East small businesses must do more to guard against cyber attacks, report says

Small businesses based in Newcastle and the North East need to do more to protect their customers and safeguard their businesses, according to the new Small Business Reputation and the Cyber Risk report launched today by Cyber Streetwise and KPMG.

Despite the fact that two thirds (66%) of consumers surveyed in the North East think that there will be more cyber attacks this year than in 2015, many of the city’s small businesses are unprepared and unconcerned, according to the research. 57% of small businesses surveyed based in the North East think it’s unlikely or very unlikely that they’d be a target for an attack, which perhaps helps to explain why only 35% feel completely prepared for a cyber security issue.

The rise in high profile attacks means that the majority of consumers (87%) surveyed in the North East are now concerned about which businesses have access to their data and whether it’s safe. 87% of consumers surveyed also admit that hearing about security breaches in the news, or from friends and family, makes them concerned about the security of their information. And it’s not just consumers that want to ensure their data is secure - recent KPMG Supply Chain research shows that an overwhelming 94% of procurement managers say that cyber security standards are important when awarding a project to a SME supplier.

The rise of these data worries means that small businesses are now under even more pressure than big businesses to get cyber security right. 58% of consumers from the North East surveyed have concerns about using small businesses and whether they are as safe as bigger ones. And although consumers value reliability and trustworthiness the most when buying from a small business, they don’t consider small businesses a safe pair of hands when it comes to their personal information. Just 5% of consumers surveyed in the North East feel that small businesses are completely prepared for a cyber issue.

Despite this, only 23% of small business owners in the North East said cyber security is one of the things that concerns them the most. It is clear that they still need to do more to protect themselves and their customers from cyber threats. 15% of North East small businesses surveyed admit that they haven’t taken any steps to protect their data. And although the vast majority have at least one digital security measure in place, just 52% surveyed use security software, only 53% have a strong password policy and 51% regularly update software.

Danny Lawrence, National Police Chiefs’ Council PROTECT Co-ordinator for Cyber Crime, said: “A cyber attack may prove so serious that it impairs an organisation’s ability to operate and even function longer term.

“Doing nothing can no longer be an option – small and medium sized businesses place their reputation and existence on the line if they fail to take action. I would encourage all SMEs to consider their cyber security, seek out support from resources available (such as Cyber Streetwise and the Cyber Essentials scheme) and consider making this piece of work a critical part of their business strategies in 2016.”

Martin Tyley, who leads KPMG’s Northern cyber security practice, commented: “It’s clear that the cyber attacks of late are creating growing concern in the minds of customers over the security of their information. These concerns risk threatening the success of many of the nation’s small businesses unless they can demonstrate a clear commitment to security and retain the trust of their customers. By taking simple steps like installing basic security software and always downloading software updates, as well as demonstrating a badge of good cyber hygiene such as Cyber Essentials, small businesses can reassure their customers that they’re in a safe pair of hands.”

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