Data breaches can affect any type of business – large, medium, and small. Larger enterprises usually have the money, resources, expertise, and customer base to help them recover from a breach. But smaller companies often face greater challenges recovering from breaches, both financially and in terms of customer loyalty. A report released by Bank of America Merchant Services highlights some of the problems that data breaches create for small businesses and how SMBs are dealing with related issues such as payment methods.
Based on a survey of consumers and small businesses, Bank of America Merchant Services’ third-annual Small Business Payments Spotlight found that 21% of SMBs reported a data breach within the last 24 months, up by 17 percent from two years ago. A full 41% of small businesses said they were hit by a breach that cost them more than $50,000 to recover. Further, almost 30% of the consumers surveyed revealed that they would never return to a small business that suffered a breach, up from 20 percent two years ago.