An Empirical Study on the Economic Impact of Cybersecurity Breaches and Computer Fraud on SMEs

Abstract

An empirical study of the economic impact of cybersecurity breaches and computer fraud on Small and Medium Enterprises (SMEs) is presented in this research paper. As the need for digital infrastructure continues to rise, SMEs are ever increasingly finding themselves being hit by cyber attacks, resulting in huge financial losses and operational disruptions. Using SME data from various sectors, the study examines the extent and nature of these impacts. We examine key areas of focus associated with breaches, including direct financial costs, indirect costs (such as reputational damage) and broader impacts on business continuity. The research is done by employing quantitative analysis methods to identify trends and correlations of frequency of cyber attacks and financial resilience of SMEs. These findings highlight the need for robust cybersecurity measures as well as provide lessons for policymakers and business owners on how to reduce risks. As such, it further contributes to the increasingly voluminous SME cybersecurity literature by providing a foundation for further research and strategic policy development.