In today’s fast-changing digital world, small and medium-sized enterprises (SMEs) face many cyber threats. The COVID-19 pandemic made digital payments more common, with nearly 80% of U.S. shoppers using them by 2020, McKinsey & Company found. But, this growth exposed big security gaps in digital payments, leaving many SMEs without the tools to protect customer data.
Only 40% of small businesses had good cybersecurity plans in place during this time. This lack of preparation led to a 31% increase in cyberattacks between 2020 and 2021, Accenture reported. The financial damage from these attacks can be huge, costing SMEs between $120,000 and $1.24 million on average.
43% of all cyberattacks in 2023 targeted smaller businesses. With small businesses making up 90% of U.S. companies, creating 60% to 70% of jobs, and contributing half of the global GDP, the risks are clear. Also, 60% of small business owners see cybersecurity as a major threat, but only 23% feel ready to handle a cyber attack.
These numbers show how critical strong security measures are. Cyber attacks can hurt customer trust, damaging a brand’s reputation and finances. So, SMEs must stay alert and take action to protect their payment systems from new threats.
Understanding the Importance of Digital Payment Security
Digital payments have changed how businesses work, more so after the pandemic. Almost 80% of shoppers in the U.S. used digital payments by 2020. Small and medium enterprises (SMEs) had to start using these new ways to pay. This move has helped them reach more customers but also raised their cybersecurity risks.
The Rise of Digital Payments Post-Pandemic
The pandemic pushed many SMEs to use digital payments more. This change helped them stay competitive. But, it also made them more vulnerable to cyber threats.
Cyberattacks on small businesses jumped by 31% from 2020 to 2021. This shows how important it is for SMEs to protect their digital payments.
Security Risks Faced by SMEs
Even with the benefits of digital payments, many SMEs don’t see the cyber threats they face. Only 40% of small businesses had good cybersecurity after the pandemic. In 2021, 83% of companies faced phishing attacks.
This shows SMEs are not safe from cyber threats. The average cost of a data breach for a small to midsize business in the U.S. was $3.86 million. This highlights the need for strong cybersecurity.
- Reliance on third-party vendors, which can expose SMEs to additional vulnerabilities.
- Increased risk of phishing attacks that exploit employee trust to access sensitive information.
- The possibility of severe disruptions from cyberattacks like ransomware or DDoS attacks.
As digital payment security changes, SMEs must take steps to protect themselves. They need to fight against the growing number of cyber threats.
Common Cyber Threats Targeting SME Payment Systems
In today’s world, digital transactions are key. Small and medium enterprises (SMEs) face many cyber threats. It’s vital to know these risks to protect SME payment systems and keep businesses running.
Phishing attacks and malware are the biggest threats. Both can cause huge problems for small businesses.
Phishing Attacks: An Increasing Concern
Phishing attacks are a top way for cybercriminals to get to sensitive data. In fact, 73% of small businesses have faced cyberattacks, with many being phishing scams. These scams use fake emails to trick employees into sharing personal info or login details.
This can lead to big financial losses and data breaches. Small businesses face 350% more social engineering attacks than big ones. So, it’s key to teach employees about security.
The Impact of Malware on Payment Systems
Malware is another big threat to SME payment systems. If employees accidentally download malware, it can give hackers access to important data. This can cause huge problems, with 54% of small businesses losing over $250,000 to cyberattacks.
With more payment processing happening on mobile devices, SMEs need to focus on mobile security. They must use strong cybersecurity tools and train employees well to fight these threats.
- How to Evaluate Cybersecurity Risks in SME Supply Chains - August 25, 2024
- Cybersecurity Strategies for SMEs in the Financial Sector - August 21, 2024
- Creating a Cybersecurity Checklist for Small Businesses - August 17, 2024
