Cisco report: 73% of PH SMBs that suffered cyber attack lost customer info
According to the study, 57% SMBs in Philippines suffered a cyber incident in the past year. As a result of these incidents, 73% lost customer information to the hands of malicious actors. This is making SMBs more apprehensive about cybersecurity risks, with 82% saying they are more worried about cybersecurity now than they were 12 months ago, and 89% saying they feel exposed to cyber threats. However, SMBs in Philippines are not giving up. In fact, the study highlights that they are taking strategic measures like carrying out simulation exercises to improve their cybersecurity posture. Titled Cybersecurity for SMBs: Asia Pacific Businesses Prepare for Digital Defense, the study is based on an independent, double-blinded survey of over 3,700 business and IT leaders with cybersecurity responsibilities across 14 markets in Asia Pacific, including 158 respondents in Philippines. The survey highlighted that SMBs saw a myriad of ways in which attackers tried to infiltrate their systems. Malware attacks, which affected 81% of SMBs in Philippines, topped the charts, followed by phishing, with 78% saying they experienced such attacks in the past year. Nearly one in two (49%) SMBs in Philippines that suffered a cyber-attack highlighted cybersecurity solutions not being adequate to detect or prevent the attack as the number one reason for these incidents. Meanwhile, 13% attributed not having cybersecurity solutions in place as the top factor. These incidents are having a tangible impact on business. Twenty-eight percent of SMBs in Philippines that suffered cyber incidents in the past 12 months said these cost the business US$500,000 or more, with 10% saying that the cost was US$1 million or more. “Over the past 18 months, SMBs have leveraged technology to continue to operate and serve their customers even as they tackled the implications of the pandemic. This has seen an acceleration in digitalization of SMBs across Philippines. As SMBs become more digital, they also become a more attractive a target for malicious actors, not least because digitalized businesses have an expanded attach surface that hackers can target. In addition, digitalized SMBs generate more data, which the malicious actors put a high price on. All of this is fueling a critical need for them to invest in solutions and capabilities to ensure they are safeguarding themselves on the cybersecurity front,” said Robin Llamas, Officer in-charge, Managing Director, Cisco Philippines. Besides the loss of customer data, SMBs in Philippines that suffered a cyber incident also lost employee data (66%), sensitive business information (66%), internal emails (56%), financial information (53%), and intellectual property (53%). In addition, 65% admitted it had a negative impact on their reputation. Disruptions caused by cyber incidents can have serious implications for SMBs. Sixteen percent SMBs in Philippines said that even a downtime of less than an hour results in severe operational disruption, while 28% said a downtime of between 1 to 2 hours can cause the same. In addition, 15% said a downtime of even less than an hour would result in severe impact on revenue, while 27% said a downtime between 1 to 2 hours would result in the same. Further, 16% said a downtime of one day would result in a permanent closure of their organization. The scale of the challenge is highlighted by the fact that only 9% of respondents in Philippines said they were able to detect a cyber incident within an hour. The number of those that were able to remediate a cyber incident within an hour was also the same.