BNZ Highlights Alarming Cyber Security Gaps in SMEs

Half of small and medium-sized enterprises (SMEs) have faced scams in the past year, costing each business an average of $5,000 per incident. A recent survey conducted by BNZ has revealed a troubling lack of preparedness among these businesses regarding cyber security and scam education. Despite 64 percent of SMEs reporting an increase in scam activity over the last twelve months, 45 percent do not prioritize cyber education for their staff.

The survey findings highlight the gaps in defensive measures against scams, according to Margaret Miller, head of fraud operations at BNZ. “Technology is a vital layer of defense, but an educated team is just as important. When staff feel confident spotting the signs, they become the business’s best asset against scams and fraud,” she said.

Many business owners recognize the threat, but they often struggle with time management and competing priorities. Miller noted that scammers are adept at exploiting security vulnerabilities. In many cases, security breaches occur simply by clicking on a malicious email link, with this happening approximately 50 percent of the time.

The report also reveals that while 53 percent of business owners believe they are prepared for scams, nearly half of that group still engage with scam attempts. “Scammers know that breaking through technical security is difficult, so in many cases they’re bypassing the technology entirely and targeting the person sitting at the keyboard,” Miller explained.

The financial implications for SMEs can be severe. Among those that fell victim to scams, 21 percent experienced business financial losses, 26 percent suffered personal financial losses, and 30 percent encountered data loss. Miller emphasized that scammers do not only target business accounts; they frequently succeed in accessing personal finances and sensitive business data.

Traditional Deception on the Rise

The data suggests that SMEs are more frequently targeted by traditional scams rather than high-tech cyber attacks. While only 2 percent of businesses reported being affected by ransomware, scams based on social engineering and deception are more common. “Scammers prey on the fact that when we’re rushed, distracted, or juggling multiple things, we’re more likely to act first and think later,” Miller stated.

To combat this growing threat, Miller recommended that businesses implement simple security measures. These include utilizing two-step authentication for logins and requiring dual approvals for any payment. She urged all business owners to take advantage of available resources to enhance their team’s knowledge.

“Whether through the Own Your Online platform operated by the National Cyber Security Centre, Netsafe, or the tailored scam information for businesses available on the BNZ website, these resources are among the most effective ways to protect your business from financial loss,” Miller added.

With the increasing sophistication of scammers, it is crucial for SMEs to prioritize cyber education and implement robust security measures. Failure to do so not only risks financial loss but can also compromise sensitive data, posing a threat to the long-term viability of these businesses.