12 Mar 2013

Half of Small, Medium Businesses Vulnerable to Security Breach

More than 50 percent of small and medium businesses (SMBs) are unprepared for a hack attack, according to a recent study by a specialty insurance company. Employee and contractor negligence was found responsible for most breach issues, followed by stolen or misplaced devices, procedural mistakes and stolen or lost paper files.

"The first thing that many small businesses need to realize is that they have an exposure," says Eric Cernak, vice president of specialty insurer Hartford Steam Boiler and commissioner of the study. "They need to look around their organization and see what information they maintain and how long they maintain it."

A survey of 1,200 managers and IT specialists at SMBs revealed that only one in three breached SMBs let the victims know of a breach and are usually overwhelmed by the responsibility of handling sensitive information. 

Employee and contractor negligence was found responsible for most breach issues, followed by stolen or misplaced devices, procedural mistakes and stolen or lost paper files.

One in five respondents said they didn’t trust third-party service providers, including Web host providers, outsources IT and HR specialists and employee payment processing handlers, blaming them for information leakage incidents given that some of these providers have access to an SMB’s employee and customer-sensitive data.

Employee trainings, adapted security policies and practices and better technology would help them set up the first line of defense to help them prevent and face whatever security attacks may head their way.

Source: Security Dark Reading