83% of consumers worried about data safety

Small Business Reputation and the Cyber Risk report, launched by the government’s Cyber Streetwise campaign and KPMG, found that small businesses in the design and creative industries are underestimating the impact of a cyber attack.

Despite 92% of creative small businesses surveyed thinking about their company’s reputation frequently or all the time, they are not considering how a breach could affect that reputation.

As well as the majority of consumers concerned about their data being safe, more than half ( 58%) said that a cyber breach would discourage them from using the business in the future.

There is a knock-on effect in the supply chain. KPMG’s supply chain research found that 86% of procurement departments would consider removing a supplier from their roster due to a breach.

Small businesses that have suffered an attack have felt the long-term repercussions – 80% who have experienced a breach said it impacted their reputation, 28% reported brand damage and 29% client losses. Almost a quarter ( 23%) were unable to grow in line with previous expectations.

George Quigley, a partner in KPMG’s cyber security practice, said: “Small businesses know that their reputation is critical to their success but it seems that many haven’t considered quite how many factors can affect it. Every piece of data in a business can be of interest to a cyber-criminal – even if the business itself may not realise it – and with SMEs a key target for this very reason, it’s vital to take steps to protect your data, and with it the trust of your customers and ultimately your reputation.”

KPMG surveyed 200 small businesses in the design and creative industries and 1,000 consumers in December 2015 via an online survey. The small businesses surveyed were senior decision makers in businesses with up to 25 employees.