Facebook biggest danger for small businesses

From: http://timesofindia.indiatimes.com/tech/enterprise-it/security/Facebook-biggest-danger-for-small-businesses/articleshow/6558980.cms

Sep 15, 2010


ORLANDO: One of the biggest business risks for small and medium businesses is from social media, reveals Panda Security's in its first annual Social Media Risk Index.

The study, which surveyed 315 SMBs with up to 1,000 employees throughout the month of July, revealed that 33 percent of these companies had experienced a malware or virus infection from social networks, with 23 percent citing employee privacy violations resulting in the loss of sensitive data. In addition, thirty-five percent of survey respondents that were infected by malware from social networking sites suffered a financial loss, with more than a third of those companies reporting losses in excess of $5,000.

Facebook is by far the most popular social media tool among SMBs. Sixty-nine percent of respondents reported that they have active accounts with this site, followed by Twitter (44 percent), YouTube (32 percent) and LinkedIn (23 percent).

Facebook was cited as the top culprit for companies that experienced malware infection (71.6 percent) and privacy violations (73.2 percent). YouTube took the second spot for malware infection (41.2 percent), while Twitter contributed to a significant amount of privacy violations (51 percent). For companies suffering financial losses from employee privacy violations, Facebook was again cited as the most common social media site where these losses occurred (62 percent), followed by Twitter (38 percent), YouTube (24 percent) and LinkedIn (11 percent).

Benefits outweigh concerns 
"Social media is now ubiquitous among SMBs because of its many obvious business benefits, yet these tools don't come without serious risks," said Sean-Paul Correll, threat researcher at Panda Security. "In Panda's first annual Social Media Risk Index, we set out to uncover the top SMB concerns about social media and draw a correlation to actual incidence of malware infection, privacy violations and hard financial losses. While a relatively high number of SMBs have been infected by malware from social sites, we were pleased to see that the majority of companies already have formal governance and education programs in place. These types of policies combined with up to date network security solutions are required to minimize risk and ultimately prevent loss."

According to the survey, SMB's top concerns with social media include privacy and data loss (74 percent), malware infection (69 percent), employee productivity loss (60 percent), reputation damage (50 percent), and network performance/utilization problems (29 percent). However, these concerns are not deterring SMBs from reaping the business benefits of social media as 78 percent of respondents reported that they use these tools to support research and competitive intelligence, improve customer service, drive public relations and marketing initiatives and directly generate revenue. 

Read more: 'Facebook biggest danger for small businesses' - The Times of India http://timesofindia.indiatimes.com/tech/enterprise-it/security/Facebook-biggest-danger-for-small-businesses/articleshow/6558980.cms#ixzz0zbdTDgEY