NSBA President: Cybersecurity a Major Issue for Small Firms

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Apr 22, 2015, 12:55 ET

WASHINGTON, April 22, 2015 /PRNewswire-USNewswire/ -- National Small Business Association President and CEO Todd McCracken testified today before the House Committee on Small Business highlighting the serious concern cybersecurity issues pose for America's small-business owners. Citing recent NSBA survey data, McCracken noted the huge increase in the cost of cyber attacks on small firms in just under two years.

The hearing, "Small Business, Big Threat: Protecting Small Businesses from Cyber Attacks," focused on the current state of cyber-security for small firms and steps that can strengthen their efforts in information protection.

In his statement, McCracken said, "In the last few years, cybersecurity has emerged as a significant problem and concern for the small-business community. By the end of 2014, according to NSBA's Year-End Economic Report, fully half of small businesses reported having been the victim of a cyber-attack (up from 44 percent in 2013). Of those, 61 percent say an attack had occurred within the last year. This is a problem."

He went on to cite the skyrocketing cost of dealing with cyber attacks: small firms today cite the average cost of a cyber attack at $20,752 per attack, up from $8,699 two years ago.

In closing, McCracken urged lawmakers to move forward on establishing streamlined cybersecurity guidelines and protocols, but cautioned against a knee-jerk reaction that would place a disproportionate burden on America's smallest firms

"Any legislation should provide clear, simple steps for companies to follow when their data is breached and must balance the need for greater information sharing with privacy rights," McCracken said.

Please click here to read McCracken's full testimony.

Celebrating more than 75 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America's entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate.

SOURCE National Small Business Association