Approximate reading time: 12 minutes
Protect your SME from cyberattacks with these key recommendations.
Cybersecurity is essential to prevent economic and reputational losses.
In today’s digital era, cybersecurity has become a central issue for companies of all sizes. However, there is a misconception that only large corporations are the target of cyberattacks. This belief can lead small and medium-sized enterprises (SMEs) to neglect their IT security strategies, exposing them to significant risks that can seriously affect their operation, reputation, and customer relationships.
This article, written by Daniel Hernández —Country Manager & CTO of Wundertec and cybersecurity specialist— explores the importance of protecting SMEs against digital threats. With a focus on the United States and Mexico, it presents recent examples of cyberattacks and their devastating impact on businesses.
The mistake of believing that “only large companies are the target”
One of the biggest mistakes SMEs make is thinking that, due to their size, they are off the radar of cybercriminals. However, the data shows otherwise. According to a Verizon report, 43% of cyberattacks in 2022 were directed at small and medium-sized businesses, and this figure has been increasing in recent years.
Why are SMEs an attractive target? Mainly because, in many cases, they don’t invest enough in cybersecurity. Hackers consider them vulnerable and, therefore, easier to attack than large corporations, which usually have more advanced protection systems.
Devastating consequences for SMEs
The consequences of a cyberattack for an SME can be as severe, or even more so, than for a large company. An IBM study revealed that the average cost of a security breach for a small business in 2022 was approximately $3.86 million. For many SMEs, this means bankruptcy or, at least, a significant loss of revenue and customer trust.
A clear example is the attack suffered by Desjardins Group, a financial cooperative in Canada, which affected more than 2.7 million people. Although not an SME, the incident shows how cybersecurity errors can have serious consequences, even for smaller entities. In this case, an employee extracted confidential information for months without being detected, causing hundreds of millions of dollars in losses.
In Mexico, some relevant cases are: Grupo Unifin, Grupo Axo, and PEMEX, where cybercriminals accessed their databases and blocked their operating systems. In some of these cases, a ransom was paid. Although these are larger companies, SMEs in Mexico represent more than 99% of the business fabric, and 88% of them do not have adequate security policies, according to the Mexican Cybersecurity Association.
Common types of attacks on SMEs
The types of cyberattacks faced by SMEs are diverse, but some of the most common include:
- Phishing: Fraudulent emails designed to steal confidential information. It is one of the most common and effective methods due to lack of awareness and security training.
- Ransomware: Malware that encrypts company data and demands a ransom to release it. This type of attack can completely paralyze SME operations, as happened in the case of Colonial Pipeline in the USA.
- DDoS Attacks: Service denial that saturates company servers, interrupting their services. These are common in the e-commerce sector, where service interruption can cause significant losses.
Impact in Mexico and the United States
Both in the United States and Mexico, SMEs are experiencing an increase in the number of cyberattacks. According to a report from CISA (Cybersecurity and Infrastructure Security Agency) in the United States, 50% of SMEs in the country have experienced at least one cyberattack in the last year. In Mexico, the outlook is equally concerning. Kaspersky reported that the country is among the five most attacked by ransomware in Latin America, and most attacks are directed at small businesses.
A recent case that drew attention in Mexico was that of a small e-commerce store, which preferred to remain anonymous, which suffered a ransomware attack that paralyzed its platform for three weeks. Cybercriminals demanded a ransom of $5,000, which meant a total loss of sales during that period, in addition to the loss of customer trust.
Measures for protection
Although SMEs are vulnerable, they have tools at their disposal to protect themselves. Some key recommendations include:
- Implement robust security software, including antivirus, firewalls, and intrusion detection systems.
- Train employees to identify phishing emails and other cyber threats.
- Perform regular data backups on external servers or in the cloud to avoid losses in case of a ransomware attack.
- Establish secure password policies and two-factor authentication.
- Contract cybersecurity insurance, a growing trend that helps mitigate financial losses derived from a cyberattack.
Conclusion
Small and medium-sized enterprises, both in the United States and Mexico, are in the crosshairs of cybercriminals. Ignoring this risk can be fatal for their operations and reputation. In an environment where cyberattacks are increasing in frequency and sophistication, investment in cybersecurity is no longer optional, but a necessity. Protecting data not only ensures business continuity but also reinforces customer trust.
At Wundertec, we understand the importance of cybersecurity as a fundamental pillar of operation, and we work hand in hand with our clients to ensure their operations remain secure at all times.
Discover how we can help you strengthen your company’s digital defenses. Don’t wait to become a victim of a cyberattack, act now and protect your business’s future!
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