House Small Business Committee holds hearing on coordinating federal resources for cybersecurity

During a hearing with the U.S. House Small Business Committee, a panel of experts said that the government must do a better job coordinating federal resources to protect the country’s small businesses from various cybersecurity threats.

The hearing comes in the wake of a recent report from Verizon, which stated that approximately 71 percent of all cyberattacks occurred in businesses with fewer than 100 employees in 2012.

“A cyber attack can have serious consequences, not only for small businesses, but also their customers, employees, and business partners,” U.S. Rep. Steve Chabot (R-OH), committee chairman, said. “Sixty percent of small businesses that fall victim to a cyber attack close up shop within six months. A 2014 survey from the National Small Business Association estimated the average cost of a cyber attack on a small business to be over $32,000.”

Charles Rowe, president and CEO of America’s Small Business Development Centers, said one issue that makes cyberattacks so devastating for small businesses is that business bank accounts do not have the same protection against loss as consumer accounts.

“Data is an increasingly vital asset for every business, including small businesses, and as companies collect more personal information from consumers, the databases they create become more attractive targets for criminals,” Maureen K. Ohlhausen, acting chairwoman of the Federal Trade Commission, said

In 2016, the U.S. House of Representatives passed the Improving Small Business Cyber Security Act, which assists small businesses facing cyber threats by providing additional tools, such as cyber support, through the Department of Homeland Security and other federal agencies.