NSBA Testifies on Cybersecurity

April 20, 2016

April 20, 2016

Molly Day

Washington, D.C. – Earlier today, National Small Business Association (NSBA) Board Member Rick Snow, owner of Maine Indoor Karting located in Scarborough, Maine, testified before the House Small Business Committee on cybersecurity. The hearing, “Small Business and the Federal Government: How Cyber-Attacks Threaten Both” focused on the current state of cybersecurity for small companies and how credit card fraud and phishing scams are impacting America’s smallest firms.

In his testimony, Snow outlined the various ways his business has been the victim of online hacking, the first of which was a phishing scheme that required him to set up an entirely new bank account and the myriad steps and countless hours associated with that. Just two weeks later, his business checking account was completely drained by illegal wire transfers which he was ultimately able to remedy after the better part of two weeks.

“Unfortunately, my business banking accounts are not protected against theft the way that my personal banking accounts are, due to a mostly-unknown loophole in the law,” stated Snow. “This discrepancy is both confusing and wildly unfair to small-business banking customers.”

Maine Indoor Karting was started by Mr. Snow and his wife in 2003. It is an indoor entertainment venue with a ¼ mile go-kart track, mini-golf, arcade, and café, and has approximately 20 full and part time employees.

During his opening statement, Committee Chairman Steve Chabot discussed the many challenges faced by small businesses and the resource limitations that make them especially difficult to face. He stressed that the 28 million small businesses in the country need confidence that both the government will keep their information secure and that they can do the same.

Several members of the committee directed questions at Mr. Snow regarding his experiences with cybersecurity. In his answers, Mr. Snow stressed that the most important thing for small businesses is education about both the threats and liabilities so that small businesses can make appropriate decisions on how to best protect themselves.

“These kind of cyber-attacks are becoming more common among small businesses,” stated Snow. “In a recent NSBA survey, 42 percent of members indicated that they had been the victim of cyber-attack.”

He concluded by urging Congress to bear in mind the unique challenges that small businesses face and continue to include the small-business community in any efforts to fight back against cyber-attacks.

Please click here to read the full testimony.

Please click here to watch the full hearing (Mr. Snow’s testimony starts at 17:12)

Celebrating more than 75 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA’s 65,000 members represent every state and every industry in the U.S., and we are proud to be the nation’s first small-business advocacy organization. Please visit www.nsba.biz or follow us at @NSBAAdvocate.