A recent cyber attack on Starbucks, attributed to advancements in artificial intelligence, highlights the growing threat of ransomware, including for small businesses. As cybercriminals become more sophisticated, the landscape of cyber threats is shifting, making it crucial for all businesses to be aware of the risks.

What Happened?

Blue Yonder provides digital supply chain management to many Fortune 500 companies including Starbucks. On November 21st, Blue Yonder experienced disruptions to its managed services hosted environment, which was determined to be the result of a ransomware incident,” an official statement said, “Our investigation remains ongoing, but please know that our priority is to ensure a safe and secure recovery. At this point in time, we do not have a timeline for restoration.” The last update to the situation from Blue Yonder was posted on Nov. 24 and stated that the incident response continued to progress but was still unable to confirm a timeline for full-service restoration.

Today marks the sixth day and they still have not recovered from the attack. Fortunately for big business, they have teams of technologists working their alternate plans that keep them operational. Most small and medium sized businesses lack robust cybersecurity and IT teams on staff. What would you do if your business could not operate for six days?

Ransomware attacks are on the rise, with a staggering 82%  targeting small to medium-sized businesses. These attacks can be devastating; statistics show that 60% of small businesses that experience a cyber attack go out of business within six months. This is particularly concerning as many small businesses lack the resources to effectively combat these threats.

In 2023 alone, 41% of small businesses reported falling victim to a cyber attack, up from 38% in 2022. This trend indicates that cybercriminals are increasingly focusing on smaller companies, which often have weaker security measures compared to larger enterprises.

Small businesses are attractive targets for cybercriminals for several reasons:

– Less Robust Security: Many small businesses do not have the same level of cybersecurity infrastructure as larger companies.

– Higher Vulnerability: About **46%** of all cyber breaches affect businesses with fewer than 1,000 employees.

– Frequent Attacks: Small businesses face an average of 700,000 cyber attacks annually, resulting in over $2.8 billion, collectively, in damages.

Additionally, small businesses receive a high volume of malicious emails, with one in every 323 emails being a potential threat. This makes them particularly susceptible to phishing attacks and other forms of malware.

To protect themselves from ransomware and other cyber threats, small business owners should consider implementing the following strategies:

1. Invest in Cybersecurity: Allocate a budget for cybersecurity measures. Surprisingly, nearly half of small businesses do not have any budget set aside for this purpose.

2. Educate Employees: Regular training on recognizing phishing attempts and other threats can significantly reduce vulnerability.

3. Develop an Incident Response Plan: Having a plan in place can help mitigate damage in the event of an attack.

4. Consider Cyber Insurance: Only 17% of small businesses currently have cyber insurance, which can provide financial support after an attack.

The recent Starbucks incident serves as a wake-up call for all businesses, especially smaller ones that may underestimate their risk exposure. As ransomware attacks become more prevalent and sophisticated, proactive measures are essential to safeguard against potential threats. By staying informed and prepared, small business owners can better protect their operations and ensure long-term success in an increasingly digital world.

Citations:

[1] https://www.strongdm.com/blog/small-business-cyber-security-statistics

[2] https://www.getastra.com/blog/security-audit/small-business-cyber-attack-statistics/

[3] https://www.insurancebusinessmag.com/us/news/cyber/despite-awareness-small-businesses-still-highly-vulnerable-to-cyber-attacks-474678.aspx

[4] https://www.law.umaryland.edu/content/articles/name-659577-en.html

[5] https://www.sba.gov/article/2024/10/03/entrepreneurs-need-stay-aware-cybersecurity-threats-may-directly-impact-bottom-line

[6] https://www.varonis.com/blog/ransomware-statistics

[7] https://www.verizon.com/business/resources/articles/small-business-cyber-security-and-data-breaches/

[8] https://www.crowdstrike.com/en-us/cybersecurity-101/small-business/cyber-attacks-on-smbs/