Report: SMB owners don't trust Facebook

While Facebook doesn't seem to have lost any steam in the consumer department since the Cambridge Analytica scandal, the same isn't true of small businesses. At least, according to new data out from Manta and Insureon. Researchers found that nearly half of SMBs surveyed for their new report no longer trust Facebook to keep their business data secure.

by Kristina Knight

About half of small business owners now have a business Facebook account, and most of those (86%) manage the account themselves.

Since the Cambridge Analytica scandal hit about one-quarter of SMBs have taken steps within social networks to increase their data security - 25% "exercise more caution" about the content shared by their business, 23% have updated privacy settings, and 16% are "more cautious" about how they target boosted posts. Still nearly half (44%) say they no longer trust that Facebook will keep their business data secure.

"Because of this, it's more important than ever for owners to reevaluate how they are using their customers' data on Facebook. They should also consider what steps they can take to be more transparent about how they are using customers' data on their own website," said Jeff Somers, President, Insureon.

After Cambridge Analytica, only about 5% of small business owners reported closing their business Facebook page. According to Somers, there are some simple ways for SMBs to protect customer data.

"Small business owners can better protect customer data by following a few simple cyber security best practices, such as using a dedicated server, encrypting data and educating employees on how to avoid falling for cyber scams. Being proactive with their approach to cyber security will not only help small business owners keep their customers' data safe, but also maintain their trust, which is crucial," said Somers. "Small business owners that store any kind of data should also consider purchasing cyber liability insurance, which can help pay for recovery and legal fees if their business experiences a data breach or other cyber attack. Though the coverage may seem expensive and unnecessary to some, the average breach costs businesses anywhere between $36,000 to $50,000 in recovery expenses - meaning not having cyber liability coverage can end up being detrimental to a business's bottom line in the long-run."

The full Insureon/Manta data set can be accessed here.

Tags: Facebook, Insureon, Manta, smb tips, smb trends, social ad data, social marketing, social marketing data