The Small Business Reputation and the Cyber Risk report found that although the majority (91%) of small financial services businesses surveyed think about their company’s reputation frequently or all the time, they fail to  consider how a breach could affect it.

However, 83% of consumers surveyed are now concerned about which businesses have access to their data and whether it is safe, and over half (58%) say that a cyber breach would discourage them from using a business in the future. 

The survey found the vast majority (94%) of small financial services businesses who have experienced a breach felt the attack impacted their reputation in some way, with 34% of those having been breached reporting brand damage, 39% reporting a loss of clients and 28% receiving negative reviews on social media.

The research suggests the impact has been long lasting. Three in ten (29%) of those surveyed have been unable to grow in line with previous expectations, and a quarter said it took over six months for the business to get back on track. Quality of service is also at risk, as those who experienced a cyber breach found it impacted the business’ ability to operate (95%) and caused customer delays (32%).

The report also reveals that over half of small financial services businesses (55%) do not think they will be a target for an attack.

George Quigley, a partner in KPMG’s cyber security practice, said: ‘Small businesses know that their reputation is critical to their success but it seems that many haven’t considered quite how many factors can affect it. Every piece of data in a business can be of interest to a cyber criminal – even if the business itself may not realise it.’