Cybersecurity in SMEs: Risks and Threats

In the digital age, cybersecurity has become a crucial aspect, but many small and medium-sized enterprises (SMEs) still suffer from a lack of awareness. In many cases, this lack of focus is due to the fact that many have not yet experienced a cybersecurity attack. This negligence not only exposes them to multiple cyber risks but can also seriously compromise the continuity of their operations and the company’s reputation.

Why don’t SMEs value risks?

1. False perception of immunity.

Many SMEs believe that, due to their size, they are not targets for cybercriminals. However, 36% of SMEs in Europe, including Spain, have suffered at least one cyber incident in the last five years. Phishing, ransomware, and CEO fraud (impersonating a person in a responsible position within the company) are the most common attacks (ENISA). Furthermore, data published on elderecho.com, collected by a well-known company specializing in cybersecurity and cloud services for businesses, shows that 50% of companies are destined to experience a ransomware attack.

2. Misunderstood cost.

Cybersecurity is perceived as an unnecessary expense. However, the consequences of an attack can be devastating. In 2023, 57% of companies affected by ransomware globally, including Spain, reported an increase in economic impact, averaging 2 million dollars for ransom payments, along with a 50% increase in recovery costs for businesses (Lefebvre).

3. Lack of awareness of the real impact.

The number of cyberattacks on SMEs has increased following the pandemic due to the rapid adoption of technologies such as contactless payments and cloud solutions without proper protection. However, 44% of companies in Spain have fewer than five employees dedicated to cybersecurity, and their protection is not solid.

The consequences of not prioritizing cybersecurity.

Small and medium-sized enterprises (SMEs) that do not invest in cybersecurity are taking on significant risks. Cyberattacks can have high-impact consequences, such as:

• Business interruption.

Attacks such as ransomware can paralyze operations for days, weeks, or even months, potentially leading to the permanent closure of the business.

• Data loss

The loss of data can, in addition to exposing confidential or critical information for the company and its activities, lead to penalties and generate a loss of trust from customers and partners. It should also be noted that no company wants to associate with entities that could jeopardize their data and operations.

• Financial Damages

Direct and indirect economic losses can be substantial, including payments for ransoms or fines for regulatory non-compliance. For instance, penalties for “Essential Entities” that violate the NIS2 directive can reach a maximum of €10 million or up to 2% of the total annual global turnover of the company from the previous fiscal year. For “Important Entities,” this amount can reach a maximum of €7 million or up to 1.4% of the total annual global turnover of the company from the previous fiscal year (INCIBE).

What can SMEs do?

1. Awareness and training

Training employees about threats like phishing is essential to prevent attacks. Employees are the primary target of attacks as cybercriminals aim to infiltrate systems and steal information through them.

2. Smart investments

Start by investing in guidance from professionals in the legal field of information technologies. On the other hand, there are effective solutions for SMEs, such as the tools included in the CPSTIC, which is a list of products verified by the CCN. This catalog includes approved products for the management of classified national information and qualified ICT security products for use in the High category of the Spanish National Security Scheme (ENS) (CPSTIC).

3. Automation of Security

Tools that automate threat detection reduce response times and minimize damage.

The future of SMEs is cybersecurity.

SMEs that do not invest in cybersecurity could be jeopardizing their future. However, those that take preventive measures will be better positioned to compete and grow.

1. Adapting to the new regulations: the example of the NIS2 directive

The NIS2 Directive will become mandatory from October 18, 2024, and will impose the mentioned sanctions in case of non-compliance. It establishes new cybersecurity requirements, and in Europe, SMEs working in critical sectors will be required to meet these standards, which will help them improve their protection and resilience (ENISA). Furthermore, SMEs that are part of the supply chain for companies in critical sectors are likely to be affected by the upcoming regulations as well (INCIBE).

2. Digitalization as a Driver of Security

As SMEs adopt digital technologies, cybersecurity becomes a key aspect. In Spain, the cybersecurity services market is expected to reach €1.2 billion in 2024, reflecting the growing importance of digital protection (VPNAlert).

3. The competitive advantage of being protected

Having a robust cybersecurity infrastructure not only protects SMEs but also provides them with a competitive advantage. Customers and partners have greater trust in companies that demonstrate a commitment to data security (European DIGITAL SME Alliance).

At Cosmikal, we understand the unique challenges faced by SMEs and are committed to providing accessible and effective cybersecurity solutions. Endurance is the perfect solution to help protect critical assets and ensure operational continuity. Its protective capabilities, intuitive interface, and one-click updates bring the latest cybersecurity technology within reach for everyone.

The future of SMEs is digital, and cybersecurity is the key to ensuring their success.