Nearly 8 in 10 small business
leaders surveyed admit they are anxious about the safety of their
company's sensitive data and information
BANNOCKBURN, Ill., Oct. 24, 2023 /CNW/ -- Shred-it®, a
leading secure information destruction service by Stericycle, Inc.
(Nasdaq: SRCL), announced today the release of its 13th annual Data
Protection Report (DPR), revealing crucial insights on information
security concerns and challenges that small business leaders (SBLs)
face. The report—titled "Vulnerable Small Businesses Risk Losing
More than Just Money"—reveals
perceptions of the current regulatory landscape and top barriers to
compliance as well as assesses the demand for assistance from
external partners.
According to the Identity Theft Resource Center's 2022 Annual
Data Breach Report, the number of data breaches remains in line
with the all-time high set in 2021, and consumers are not
oblivious to the stark realities of cybercrime. Eighty-one percent
of consumers would stop engaging with a brand online following a
data breach, stated a Ping Identity consumer report. Additionally,
the cost of data breaches to all businesses is at its highest level
ever with an average cost of more than $4.4M globally, more than $5.1M in Canada,
and more than $9.4M in the
U.S. This financial impact could cripple a small business as
they face potential regulatory actions and fines, legal fees, and
the loss of customers.
This year's DPR found that 1 in 4 of the SBLs surveyed
reportedly experienced a data breach in the past and, of those, 50%
said it was caused by employee error. Close to half (45%) of
consumers noted that they have experienced at least one data
breach. Furthermore, 3 in 4 of the SBLs and almost all (94%) of the
individual consumers surveyed said they are concerned about future
data breaches. To help avoid future breaches, more than 90% of SBLs
believe that data and information protection and compliance
training is an essential security practice, but interestingly, only
15% require employees to complete them.
"Following years of stress from the global pandemic, small
businesses and consumers now face many financial pressures due to
inflation, lingering supply chain issues, and rising prices," said
Cory White, executive vice president
and chief commercial officer at Stericycle. "Running a business is
now more costly than ever, and businesses continue to look for ways
to save money. Our 2023 Data Protection Report found that SBLs
recognize that information and data security are critical in
building and retaining strong relationships with customers.
However, many are still at risk of losing customers and related
revenue if sensitive physical and digital data protection becomes
compromised. Addressing data protection properly is an essential
part of business leaders' strategic decisions."
Business-critical insights from the report include:
- Vulnerable Small Businesses May Risk Losing Customers to
Potential Breaches
- 73% of the SBLs and 94% of the consumers surveyed are
concerned about data breaches in the future. These concerns are
even higher among Canadian small business leaders (81%).
- Only 60% say they are proactive when it comes to data and
information protection, and a mere 22% report being 'extremely
proactive,' potentially leaving many small businesses exposed to
future issues.
- Training and Education Can Help Mitigate Potential
Risks
- 71% of SBLs surveyed fear that their employees will not
know what to do in the event of a breach.
- However, only 15% of SBLs report that they require their
employees to take any training, and the few who do have mandatory
training are not offering it regularly.
- A majority (63%) of SBLs admit they do not have a reliable
source to maintain relevant policies and training.
- An Effective Compliance Strategy Can Benefit From a Strong
Third-Party Partnership
- 76% of the SBLs surveyed worry that regulations will only
become more complicated and burdensome for small businesses in the
future. These worries are even more pronounced for Canada-based SBLs (87%).
- 67% of SBLs are overwhelmed at the thought of changing
procedures to meet existing regulations.
- 47% of SBLs do not currently have third-party partners for
managing sensitive digital data and information, but more than 90%
of those who do use a third-party partner feel their partnerships
are deeply valuable.
"Small business leaders need to be proactive and allocate more
budget upfront or risk significant revenue loss that is difficult
to recover from," said Michael
Borromeo, vice president of data protection at Stericycle.
"They have an opportunity to protect themselves by offering regular
employee training and developing an understanding of the shifting
data protection regulatory landscape — both of which a trusted
third-party partner can provide valuable guidance."
The full 2023 Data Protection Report provides actionable
recommendations for small business leaders to help keep their
digital and physical data secure as well as best practices to
remain educated about changes in data protection legislation.
Access to the full report and multimedia assets can be found
here.
About the 2023 Data Protection Report
Shred-it's 2023 Data Protection Report is a survey of 501 small
business leaders (e.g., business owners, executives, C-levels, VPs,
Director+ levels or equivalent) who work at or own companies with
15 to 100 employees in the U.S. and Canada across a variety of sectors (e.g.,
healthcare, finance, professional services, insurance, real estate,
etc.), as well as 1,000 consumers in the U.S. and Canada. This research uncovered that many SBLs
have critical concerns and challenges regarding information
security and data protection. The report also describes the
perceptions of SBLs with respect to today's data protection
regulatory landscape, top barriers to compliance, the future
outlook, and demand for external assistance from partners.
About Shred-it
Shred-it® is a secure information destruction
service provided by Stericycle, Inc. (Nasdaq: SRCL). Shred-it's
leading information destruction solutions help ensure the security
and integrity of private and confidential information, helping to
protect the information of global, national and local businesses
across North America and
Europe. For more information, please visit
www.shredit.com.
Media Contact:
+1-847-964-2288
media@stericycle.com
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SOURCE Shred-it