Cyberattacks have quickly become a top concern for every company. Breaches into large organizations generate headlines, but small and middle market companies actually suffer the lion’s share of attacks.
3,403
new and updated cyber insurance claims were collected in 2022 with…1
98%
…of those from companies with less than $2 billion in annual revenue2
20%
of middle market companies surveyed in RSM’s 2023 Cybersecurity Special Report admitted to a data breach in the past year3
68%
middle market executives anticipate unauthorized users will attempt to access data or systems in the next year4
There are several kinds of cyberattacks, and organizations must defend against all types in order to keep their data safe.
50%
Ransomware and business email compromise were the two leading causes of loss, accounting for nearly 50% of all claims over the past two years5
63%
In 2023, 63% of middle market leaders felt that their organization was at risk of a ransomware attack in the next 12 months6
76%
And 76% of middle market leaders reported their company was at risk of an attack by manipulating employees in the next 12 months7
The range of damage varies from one breach to the next, but reputational damage may be the greatest expense of all.
- The number of records exposed ranged from 2 to over 300 million…8
- …with the claims ranging from less than $1,000 to over $300 million9
- The average incident cost for middle market companies was $198,00010
Middle market organizations are actively upgrading defenses and implementing new solutions to avoid costly breaches.
61%
Updating security protocols
61%
Utilizing a cyber insurance policy to protect against internet-based risks
49%
Enhancing the security of existing remote workforce solutions
49%
Strengthening staff training and education efforts
36%
Moving or migrating data to the cloud as a result of security concerns
Cyberattacks may be part of how we all do business now, but data breaches don’t have to be.
1. NetDiligence Cyber Claims Study 2022 Report
2. NetDiligence Cyber Claims Study 2022 Report
3. RSM US Middle Market Business Index: Cybersecurity Special Report 2023
4. RSM US Middle Market Business Index: Cybersecurity Special Report 2023
5. NetDiligence Cyber Claims Study 2022 Report
6. RSM US Middle Market Business Index: Cybersecurity Special Report 2023
7. RSM US Middle Market Business Index: Cybersecurity Special Report 2023
8. NetDiligence Cyber Claims Study 2022 Report
9. NetDiligence Cyber Claims Study 2022 Report
10. NetDiligence Cyber Claims Study 2022 Report
Explore the research
Research
May 18, 2023
Cybersecurity special report | MMBI
RSM’s annual cybersecurity report shows that reported breaches fell slightly in the middle market last year, but significant risks remain prevalent.
Guide
October 10, 2023
The cost of a data breach: 2023 NetDiligence® Cyber Claims Study
The annual NetDiligence Cyber Claims Study details the losses from cybersecurity incidents covered by leading cyber insurance carriers.
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