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Cybercrime Could Cost the World $10.5 Trillion Annually by 2025 Don't let your business become a victim to the onslaught of attacks.

By Chris Porteous Edited by Frances Dodds

Opinions expressed by Entrepreneur contributors are their own.

Yuichiro Chino | Getty Images

In a world that is becoming increasingly reliant on technology, cybersecurity is an extremely important priority for entrepreneurs and small and medium-sized businesses. And it's become even more essential in the wake of the pandemic. In June 2020, Verizon released its annual Verizon Business Data Breach Investigation Report (DBIR) and the findings of the report revealed that small and medium-sized businesses were at an especially high risk of data breaches and cyber attacks during the pandemic.

This is because more people than ever were working from home, making it difficult to implement uniform security practices and for employers to know exactly what workers were doing. In these uncertain times, it is vital that entrepreneurs as well as small and medium-sized business owners not only become aware of the value of cybersecurity but truly understand its pertinence to their everyday operations. Here are three key reasons why cybersecurity is so important.

Cyberattacks can cost you significant amounts of money

In November 2019, the Accenture "Cost of Cybercrime" study indicated that the average annual costs businesses were incurring was ballooning for various types of cybercrimes. For instance, a single malware attack in 2018 costed businesses more than $2.6 million. Additionally, ransomware costs increased the most between 2017–2018, rising by 21% from $533,000 to $646,000. There have also been predictions that cybercrime will cost the world $10.5 trillion annually by the year 2025.

Evidently, cybercrime is incredibly costly for companies. By not prioritizing cybersecurity or not recognizing its salience, you greatly increase your chances of damaging your business' bottom line in the long run.

Related: How Artificial Intelligence Is Changing Cyber Security Landscape ...

Data breaches can taint your business' reputation

If you fail to take the necessary steps to properly protect your customers' and stakeholders' data against breaches and cyberattacks, this will reflect poorly on you and your company. You may gain a reputation of being ill-equipped or careless, which may then cause customers and/or investors to take their money elsewhere. This loss of consumer trust can be incredibly difficult to recover from.

Cybersecurity affects everybody

If you use online tools in any capacity, you become inherently affected by cybersecurity and therefore should be well-aware of its importance. Similarly, you should also be well-versed in the ways in which cybercrime can easily transfer from one individual device to an entire company network. For example, if an infected personal device connects to the company network or system, it can infect the company's other systems, leading to increased vulnerability to cyberattacks.

If you want to boost your cybersecurity operations to better protect your business against cyber threats, consider contacting an IT support company. Specializing in areas like networks, encryption, and access control, these experts can greatly assist you in strengthening your cybersecurity.

Ultimately, cybercrime is an unfortunate reality that remains consistently pervasive. Small and medium-sized businesses are particularly vulnerable, especially in uncertain times. As a result, entrepreneurs and small and medium-sized business owners should do their research into the importance of cybersecurity. In properly understanding its relevance, they will ideally take more proactive steps to prioritize cybersecurity in their day-to-day operations.

Related: Five Ways To Protect Your Company Against Cyber Attacks

Chris Porteous

Entrepreneur Leadership Network® Contributor

High Performance Growth Marketer

Chris Porteous is CEO of SearchEye, which offers unbundled digital marketing projects for clients and agencies across the globe.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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