As a result of the rapid development of generative artificial intelligence, cyberattackers will likely have the upper hand in the short to medium term, compounding the long-term increase in cybersecurity risks for businesses, according to a report published by Moody's Investors Service. Based on University of Maryland data, the rating firm said cyberattacks rose by 26% per year between 2017 and 2023.
According to Moody's, ransomware payments worldwide for the past year exceeded $1 billion, according to Chainanalysis, a cybersecurity firm. It has been reported that 23 per cent of small businesses are very prepared for cyberattacks, while half are considered somewhat prepared, according to a survey conducted by the U.S. Chamber and MetLife from Jan. 26 to Feb. 12, citing 750 small business owners.
Even though small businesses in professional services are significantly more concerned about cyber security threats than those in manufacturing and services, the Chamber of Commerce and MetLife report that the industry is also better prepared to deal with these threats than those in manufacturing and services.
As a result, the U.S. Chamber and MetLife survey found that small businesses in manufacturing and retail are most concerned about a supply chain breakdown, even though only about three out of five are prepared to handle one, according to the survey. A survey by the U.S. Chamber and MetLife stated that more than half of small businesses (52%), reported persistent price pressure to be their primary concern, noting inflation remains a stubborn concern.
A report by the National Federation of Independent Businesses indicates that 25% of small businesses view inflation as their largest operational problem, an increase of 2 percentage points since February according to the study and that inflation is one of the biggest operational problems that small businesses face. “Inflation has once again been cited by the NFIB Chief Economist Bill Dunkelberg as the top economic issue facing Main Street,” Dunkelberg stated.
A third straight month of higher consumer prices was reported in March, prompting futures traders to predict that the Federal Reserve will not be cutting borrowing costs in 2024 as much as it should. According to the Bureau of Labor Statistics, the CPI was 0.4% higher in March and 3.5% higher over the past twelve months, well above the Fed's 2% target, thanks to the sharp rise in transportation and shelter prices.
Additionally, the core CPI, which excludes volatile food and energy prices, also surpassed expectations for the month, rising by 0.4% and up 3.8% over the same period last year in addition to the 0.4% increase for the month.