Born from the need of businesses to stay afloat during the COVID-19 pandemic, many businesses hastened digital transformation initiatives and shifted their operations online. However, this digital reliance also increased businesses’ exposure to cybersecurity threats such as phishing, malware infections, and more recently, social engineering. IBM calculated the financial cost of these attacks in their 2025 Cost of Data Breach Report. From this report, we learned that while the cost of data breaches is on the downturn globally (average of $4.4 million in 2025), costs in the US went on an upslope to $10.22 million in 2025 (vs. $9.36 million in 2024).
Unfortunately, cyberattacks are not just quantifiable by these immediate losses. In fact, the most long-lasting effect of a cybersecurity breach is the erosion of customer trust. From a survey by PCI Pal in 2018, approximately 21% stop doing business with a company following a data breach while 83% avoid the said business for several months after the incident.
Effects of Cyberattacks on Small and Medium-Sized Businesses
These consequences are particularly concerning for small and medium-sized businesses (SMBs), which often possess fewer resources to prevent, detect, and respond to cyber incidents. Despite these challenges, many SMBs still underestimate their vulnerability to cyber threats. In fact, around 30% of small businesses do not consider themselves targets of cybersecurity threats.
Moreover, Ponemon Institute (2018) revealed that 59% of their sampled small to medium businesses across the United Kingdom and the United States do not have a strong cybersecurity readiness. This is mainly because these companies lack the proper manpower and financial capacity to have a robust and proactive cyber defense. These traits, however, are appealing vulnerabilities for a cyber-attack. In fact, despite the relatively smaller capital of SMBs, cyberattacks can still cost them around $120,000 to $1.24 million (Sharif and Mohammed, 2022).
Cyberattacks are not just Problems for Big Businesses
This gives us a reality check that cyberattacks are not just reserved for large enterprises. As cybercriminals become more persistent and sophisticated, SMBs can no longer afford to view cybersecurity as an optional investment. Many SMBs lack access to a larger capital and a strong cybersecurity expertise needed to keep pace with increasingly sophisticated threats; however, they can significantly reduce their cybersecurity risk by establishing a stronger cybersecurity defense that would help them quickly identify vulnerabilities and develop strategies to effectively protect themselves from these attacks.
CKNY can help you build your cyber defenses. Learn more about our cybersecurity services here.
References:
- IBM. (2025). Cost of a data breach report 2025. IBM Corporation.
- Ponemon Institute, LLC. (2018). The state of cybersecurity in small and medium-sized businesses. Keeper Security. https://www.keepersecurity.com/assets/pdf/Keeper-2018-Ponemon-Report.pdf
- Security Magazine. (2018, October 24). 83% avoid a business following breach and 21% never return. https://www.securitymagazine.com/articles/89501-avoid-a-business-following-breach-and-21-never-return
- Sharif, M. H., & Mohammed, M. A. (2022). A literature review of financial losses statistics for cyber security and future trend. ResearchGate. https://doi.org/10.30574/wjarr.2022.15.1.0573