How long would it take your business to recover from a cyberattack?

Cyber threats are increasingly affecting small and medium businesses across Australia. With attack numbers rising and recovery costs growing, cybersecurity needs to be part of everyday business planning for SMEs, especially when it comes to recovery after the fact.

The growing risks of cyberattacks

If you feel like you’re hearing about cyberattacks more often, you’re not imagining it. In the most recent Cyber Threat Report, data revealed that:

• The Australian Signals Directorate’s (ASD) Australian Cyber Security Centre (ASCS) responded to over 1,200 cybersecurity incidents, up 11% from last year;  and more than 200 incidents involving Denial of Service (DoS) or Distributed Denial of Service (DDoS), which is up more than 280% from last year.
• More than 42,500 calls were made to the Australian Cyber Security Hotline, an increase of 16% from the previous year.
• Publicly reported common vulnerabilities and exposures increased by 28%.
• The average cyber incident costs small businesses $56,600 (up 14%).

These numbers illustrate an alarming story. The combination of rising attack volume, higher incident costs, and more reported weaknesses shows how important it is for SMEs to stay vigilant.  

The cybersecurity gap: Belief vs. reality

Australian businesses are positioning cybersecurity as their highest risk management priority. But while awareness is improving, many organisations still overestimate how ready they are to deal with a real attack. It’s common for businesses to assume their systems, backups, or IT providers can handle an incident quickly, only to find out that their processes haven’t been tested or their protections aren’t as strong as expected.

For small and medium businesses, this gap between confidence and capability can be especially challenging. Most small businesses lack IT infrastructure, unlike large corporations which can afford to have in-house cybersecurity teams and many other defences in pace. Instead, many SMEs rely on a mix of cloud services and external IT support. This can create potential blind spots, meaning recovery often takes longer than expected.

How prepared are SMEs for a cyberattack?

A new CrowdStrike report reveals that 78% of respondents reported experiencing a ransomware attack within the past year. Of those, 50% believed they were “very well prepared” for ransomware, but only 22% of businesses were able to recover from an attack within 24 hours. Nearly 25% suffered significant disruption or data loss. 

That’s a significant gap between belief and actual preparedness, and it highlights how easy it is to underestimate the complexity of modern cyber incidents – especially when AI is involved, as is quickly becoming the case these days.

Perhaps the most alarming statistic from the Crowdstrike report is that of those businesses who suffered a cyber breach, only 38% actually fixed the issue that led to the incident in the first place. This shows a worrying assumption from business owners that “lightning won’t strike the same place twice.” However, further CrowdStrike data show that 83% of business owners who pay the ransom after a ransomware attack are hit again.

How is AI is powering cyber threats?

Cybercriminals are now using AI to make attacks faster, smarter and harder to spot. Tools that once required specialist skills can now automate tasks like cracking passwords, creating convincing phishing emails or scanning for system weaknesses. For small businesses, this means threats are evolving more quickly than traditional security measures.

Plus, AI isn’t just speeding up attacks. It is also making them much more targeted. Criminals can analyse publicly available data to tailor messages that look genuine, or launch attacks that adapt in real time. This shift highlights why basic cyber habits, regular checks and a clear response plan are more important than ever.  

Some examples of AI-driven cyberattacks include:

• Automated phishing scams
• Highly personalised spear-phishing attacks
• Malware generation
• Brute force attacks
• Automated ransomware
• Exploiting software vulnerabilities.

What sectors are most at risk? 

While no business is completely safe from cyber-threats, some sectors in Australia face particularly high risk because of the nature of their operations, the volume of sensitive data they hold, or their reliance on complex digital systems.

According to the Cyber Threat Report, the top three most frequently targeted non-government sectors are:

1. Financial and insurance services
2. Healthcare and social assistance 
3. Information media and telecommunications.

‘Small’ doesn’t mean safe when it comes to cyberattacks 

A cyberattack can stop a small business in its tracks. Frequently, it’s not just about the incident itself and the immediate financial pain, but the additional flow-on effects that make recovery slow and expensive. And just because you’re a small business, doesn’t mean you’re less likely than a large corporation to become the victim of a cyberattack. 

Here are five examples of how a cyberattack can impact a small business:

1. Cyberattacks can shut down operations without warning: When systems freeze or files become inaccessible, daily tasks simply stop. This sudden disruption creates immediate pressure and makes it difficult to keep work moving.
2. Downtime leads directly to lost revenue: When your systems are offline, income often stops too. Jobs can’t be completed, sales can’t be processed, and service times blow out. For many SMEs, even a single day of downtime can set back weekly or monthly revenue targets.
3. Trust can be damaged if customer data is exposed: Your customers rely on you to protect their information. If a breach exposes contact details, payment information or personal information, confidence can drop quickly. For small businesses built on relationships and repeat clients, reputational harm can be one of the most lasting consequences of a cyber incident.  
4. Recovery costs can add up quickly: Recovering from a cyberattack often involves more than repairing a computer. Businesses may need technical support, system rebuilds, data restoration, legal guidance and communication management. At the same time, staff may spend hours or days trying to work around disrupted systems. These combined costs can stack up fast, creating both financial and operational strain on already busy teams. The business could also face hefty regulatory fines and penalties. 
5. Paying a ransom doesn’t guarantee anything: Some businesses feel pressured to pay a ransom in the hope of recovering their data. But payment doesn’t guarantee a positive outcome. According to the CrowdStrike report, 93% of paying cyberattack victims had data stolen anyway. In these cases, businesses face the cost of the ransom and the cost of rebuilding their systems, making the incident even more damaging in the long run.

Stay ahead of the risk

Cyber threats are growing, but they don’t need to become a source of constant worry. The gap between confidence and actual readiness is real, but it’s something you can close with practical actions like reviewing your systems, testing your backups, and asking questions when something doesn’t seem right.

How Cyber Liability insurance may help

Cyber Liability insurance is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack. It can help you manage the damage and therefore recover faster if you’re hit by a cyberattack.

Examples of the types of risks Cyber Liability insurance can assist with are unintended loss or release of customer personal information, cyber crime, cyber extortion/ransomware and business interruption due to a cyber event. In addition, this type of insurance generally includes cover for certain fines and penalties, costs to protect or mitigate a business’s reputation, and access to a 24-hour cyber incident response line.

You can get a Cyber Liability insurance quote in minutes with BizCover. Explore your options today.