Oscar Valejjo, the owner of Doglato, experienced firsthand the profound impact of such cyber threats. After a cybercriminal took control of his social media accounts by posing as a friend, Valejjo found himself cut off from his primary channel of customer engagement.
"It was shocking to realize that I had lost complete access to my accounts. My business thrived on these platforms, and suddenly, I couldn't reach my customers," said Valejjo. His story highlights how online presence plays a critical role in today's business landscape.
Valejjo explained that the attack led to an estimated $50,000 loss, affecting customer engagement and sales. The aftermath forced him to rebuild his online community, a daunting task given that he lost about 40% of his followers.
This incident underscores the reality that the majority of online contacts may not have good intentions, and businesses must be vigilant. Following the breach, Valejjo invested in expert cybersecurity training for himself and his staff to prevent future occurrences.
Statistics from the Commonwealth Bank reveal a troubling trend; nearly 90% of reported scams come from small businesses, costing them an average of $30,000, primarily through investment scams. Rebecca Warren, Executive General Manager of Small Business Banking at CommBank, indicated that the financial and emotional repercussions of such breaches could be devastating.
Despite these threats, a recent report by Business NSW found that about 20% of small and medium-sized businesses are planning to cut their cybersecurity budgets this year due to growing operational costs. This move is concerning, especially given the 24% increase in cybercrime reports in Australia within the last financial year, totaling 94,000 incidents.
The report also highlighted that 34% of small businesses and 43% of medium-sized businesses faced cyber incidents in the last year. Most of these incidents involved more frequently breaches of business accounts rather than internal systems.
Business NSW CEO Daniel Hunter has called for government intervention to offer financial relief through a 20% deduction on cybersecurity expenditure. He emphasized that businesses should not have to compromise on cybersecurity due to rising overhead costs.
"As operational costs surge, the risk is that more small businesses will deprioritize cybersecurity, although every attack almost averages a loss of $50,000," Hunter warned. He added that the repercussions of cyber attacks extend beyond finances, often affecting staff wellbeing, as seen in a regional NSW bookkeeping firm where an employee faced severe mental health impacts.
Parramatta MP and special envoy for cyber security, Andrew Charlton, stressed the importance of basic cybersecurity measures, such as strong passwords and multi-factor authentication, as cost-effective methods to reduce cyber risks. Additionally, government programs, including the $20.8 million Cyber Health Check, aim to support small businesses without exacerbating financial burdens.
While the problem poses significant challenges, taking actionable steps can help small businesses better protect themselves from cyber threats. The key takeaway is the importance of resilience and proactive measures in safeguarding digital assets.
Originally reported by Emma Kirk, NewsWire
