IAG-owned insurer AMI has warned small businesses not to underestimate cyber threats after its research found cost is the main factor stopping many from investing in digital protections.

Its July survey of New Zealand small businesses found more than 70% are concerned about cybersecurity, with one in four saying they have been affected in the past two years. 

But more than half of the respondents have confidence in their current cybersecurity settings, with only 37% planning to increase their protection within the next year.

The research found cost is the main deterrent to businesses deploying new security measures or systems. About 40% of survey respondents say it is a key consideration for them.

“What we saw ... is that small business owners often think they’re too small to be impacted, or that if they are, they’ll be able to recover quickly,” AMI’s consumer brands EGM Paula ter Brake said.

National data shows New Zealanders, including business owners, lost $NZ6.6 million ($6.08 million) to cybercrime in the March quarter, up 84% on the preceding period.

“Cybercrime is notoriously under-reported too, so it’s quite possible that the true impact is much higher,” Ms ter Brake said.

“Although many small business owners think they don’t need to up their cybersecurity, or that they won’t be significantly impacted, it’s clear that in this digital age, they may be leaving themselves exposed, and the risk is only growing as we conduct our lives and businesses increasingly online.”

She says the cyber landscape is constantly changing, so there is a need for ongoing protection, awareness and education.

“Cyber insurance can help businesses recover faster if things go wrong.”