Despite this, more than half (54%) are confident in their current cybersecurity measures, while only 37% plan to enhance protections in the next 12 months.
Paula ter Brake (pictured), executive general manager of consumer brands at AMI, said many small businesses do not see themselves as prime targets for cyberattacks.
“Small business owners often think they’re too small to be impacted, or that if they are, they’ll be able to recover quickly,” she said.
According to CERT NZ, cybercrime caused $6.6 million in losses across New Zealand, an 84% increase from the prior period. AMI noted that the actual losses could be higher due to underreporting.
A key finding from AMI’s research is that 40% of businesses cite cost as the primary reason for not investing in better cybersecurity measures.
Many small business owners are reluctant to increase spending on protections despite growing cyber risks.
In response, AMI has launched a cyber insurance product tailored for small businesses.
The product provides support in the event of various cyber incidents, including ransomware attacks, phishing schemes, and business email compromise.
AMI’s cyber insurance also offers access to IT professionals who can assist businesses in minimising damage and restoring operations quickly after an attack.
Commenting on the new offering, Ter Brake said cyber insurance can be an important tool for businesses to recover quickly when an incident occurs.
“The nature of cybersecurity is that it’s constantly evolving, so there’s a real need for ongoing protection, awareness, and education,” she said.
AMI’s cyber insurance solution is supported by UpGuard, a global cybersecurity company that provides monitoring services designed to identify vulnerabilities and help prevent cyberattacks.
This research highlighted a broader cybersecurity challenge for New Zealand’s small and medium-sized enterprises (SMEs).
According to a separate study by the National Cyber Security Centre (NCSC), while 55% of SMEs view cybersecurity as a priority, only 48% believe they are fully prepared for cyber threats.
The NCSC report also revealed that 36% of SMEs had been affected by cyberattacks in the last six months. However, many SMEs tend to adopt security measures only after suffering an attack.
It also showed that basic cybersecurity practices are lacking, with 35% of SMEs not regularly backing up their data and 23% failing to keep software updated.
Another new report, published by Gen, has found a 46% increase in cyberattacks across the globe during the second quarter of 2024, with New Zealand being among the countries most hit by financial frauds.
