Nationwide Survey Reveals One-Quarter of Small Business Owners Targeted by AI-Driven Scams
A recent survey from Nationwide found that one-quarter of small business owners (SBOs) in the US have been targeted by AI-driven scams in the past year. These scams, which often use artificial intelligence in email, voice, or video impersonations of high-level employees, have left many small businesses vulnerable to fraud. As cyber threats such as ransomware, phishing, and malware remain top concerns, AI-powered scams are emerging as a significant new threat.
The survey also revealed that more than half (52%) of SBOs admitted to being tricked by a fake photo or video in the past year. Additionally, nine out of 10 respondents believe AI scams are becoming more sophisticated, with many expressing a need for help protecting their businesses. Although many SBOs realize that the rise of productive AI makes cyber insurance more necessary, less than half of them actually carry the coverage they need.
Key Insights from the National Survey:
- Small Businesses Have Improved Cybersecurity, But Still Need More Protection
- Since the COVID-19 pandemic, 69% of SBOs are now concerned about a cyberattack on their business, which is a significant increase from 2022.
- Two-thirds (65%) feel prepared to prevent attacks, and 71% provide formal cyber security training to employees at least once a year.
- However, 23% of SBOs have already been victims of cyber attacks, with many reporting an impact on their finances and customer trust.
- Business Owners Reduce Cost and Time to Detect Cyberattacks
- 81% of SBOs believe a cyberattack will cost them less than $5,000, while 22% think they can recover in a month or less.
- National claims data shows that a small business cyber claim is between $18,000 and $21,000, with recovery typically taking up to 75 days.
- Confidence Is High, But Plans Are Lacking
- While 66% of SBOs are confident in their ability to recover from a cyber attack, only 42% have purchased cyber insurance.
- Additionally, 66% of SBOs expect non-cyber insurance to cover cyberattack losses, or have never considered what to do in the event of an attack.
- 69% have an incident response plan, but 28% admit their plans are outdated.
The Need for Proactive Cybersecurity
A nationwide survey highlights the importance of SBOs playing a role in protecting their businesses from AI-driven cyber attacks. With the development of artificial intelligence fraud, Lentz emphasized the need for updated incident response systems and comprehensive cyber insurance.
By adopting a proactive cyber security approach that includes robust procedures, up-to-date response plans, and comprehensive coverage, small business owners can protect their businesses from cyber threats.
Photo: Envato
