US small-business breach and price-pass-through trend amid falling preparedness
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US small businesses are seeing a broad breach-to-price effect, with 81% reporting a security or data breach over the past year and 38% raising prices afterward. The trend matters because cyber losses are being passed into consumer prices while basic security posture weakens. A 2025 survey of 662 owners and executives also found 41% blaming AI-powered attacks and lower adoption of MFA. The report points to AI-enabled phishing, BEC, malware, and reconnaissance as part of the pressure on this cohort.
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Timeline
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11.12.2025 11:45 2 articles · 7mo ago
ITRC reports breach-driven price increases among US small businesses
Industry Or Public Sector UpdateIdentity Theft Resource Center (ITRC) reports that 81% of US small businesses with under 500 employees experienced a security or data breach over the past year, 38% raised prices afterward, and 41% blamed AI-powered attacks; the 2025 Business Impact Report also says confidence in being very prepared fell to 38% while MFA adoption dropped to 27%, with AI enabling hyper-realistic phishing emails, deepfake audio/video for BEC, adaptive malware, and automated reconnaissance.
Show sources
- “Cyber Tax” Warning as Two-Fifths of SMBs Raise Prices After Breach — www.infosecurity-magazine.com — 11.12.2025 11:45
- “Cyber Tax” Warning as Two-Fifths of SMBs Raise Prices After Breach — www.infosecurity-magazine.com — 11.12.2025 11:45