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Cyber attacks could lead to a small business shutting down

There are many fears a small business owner might have regarding their company. One is that something might occur that will bring their company to an end. A variety of different things could result in a small business shutting down. This includes things that happen in the digital world; cyber attacks could put a small company at risk of going out of business.

A cyber attack could have all kinds of consequences for a small business. It could lead to financial losses, a high potential of facing litigation and major drops in the company’s reputation. Sometimes, the financial pressure these things put on a small business are so great that keeping the business open is no longer an option for its owner.

It appears that this, sadly, is a rather common fate for small businesses that are victims of cyber attacks. Research from Symantec indicates that, after being subjected to a cyber attack, around 60 percent of small companies end up shutting down within six months. This is among the reasons why cyber-security is such an important area for small businesses in today’s world to give proper attention to.

Now, while a cyber attack can put a small business in a very difficult position, having experienced an attack doesn’t have to automatically mean that the business is doomed to close. There are things that may be able to help a small business stay afloat through the turmoil surrounding such an attack. This includes properly addressing litigation brought against it in connection to the attack. When facing litigation in relation to a cyber attack or another major destabilizing event, a business owner may want to promptly turn to a skilled business lawyer for help. Such attorneys can assist business owners with handling the matter in a way aimed at safeguarding the big goals they have, which could include goals regarding keeping the business up and running.

Source: Insurance Business America, “Cyber risks for small businesses,” Sept. 27, 2016

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