'Small business owners often think they're too small to be impacted,' says expert
Small businesses in New Zealand are significantly underestimating their vulnerability to cyber threats, new research from insurer AMI reveals.
According to the study, 73% of small business owners express concern about cyber security, yet many are not taking action to bolster their defences. In fact, only 37% plan to improve their security measures in the next 12 months, despite a rising tide of cybercrime.
"What we saw in the research, and this is consistent with reporting from CERT NZ, is that small business owners often think they’re too small to be impacted, or that if they are, they'll be able to recover quickly," said Paula ter Brake, AMI Executive General Manager Consumer Brands, in a statement.
But recent statistics from CERT NZ have shown a stark increase in the financial toll of cybercrime, with New Zealanders, including business owners, losing $6.6 million to cybercriminals, an increase of 84% from the previous period.
"Cybercrime is notoriously underreported too, so it's quite possible that the true impact is much higher," ter Brake added.
Despite these risks, many small businesses remain confident in their current cyber security measures, with 54% of surveyed owners believing their existing systems are sufficient. Another 40% of respondents also cited financial considerations as the main factor preventing them from investing in stronger cyber security measures.
Ter Brake said the constantly evolving nature of technology underscores the need for ongoing protection, awareness, and education.
"Although many small business owners think they don't need to up their cyber security, or that they won't be significantly impacted, it's clear that in this digital age, they may be leaving themselves exposed, and the risk is only growing as we conduct our lives and businesses increasingly online," she added.
