A Verizon study on cybersecurity released in 2019 found that the financial fallout from data breaches in American businesses with fewer than 500 employees is approximately $2.98 million. This emphasizes the need for small businesses to prioritize cybersecurity and address any existing security vulnerabilities.
Unfortunately, tight budgets limit their ability to implement robust security measures, making them a highly valuable target.
CEOs and administrators of small businesses must be reminded that a cyberattack can lead to disastrous consequences.
That said, not all is lost since there are a few practical tips on enhancing cybersecurity for small businesses.
Cyberattack targets range from government agencies to healthcare organizations, but the primary victims are small and medium-sized businesses (SMBs). There are a variety of reasons to explain this, but the main cause is the prevalence of cybersecurity misconceptions and myths.
These include the belief that only certain industries are at risk, that small businesses are too small to be worth attacking, and that they possess too little data to be valuable for exploitation.
This is all wrong and can be easily debunked. For example, according to the 2019 Verizon Data Breach report, cyberattacks on small businesses account for 43% of all data breaches. In addition, 60% of those attacked end up going out of business.
Unfortunately, small businesses are particularly vulnerable, not only due to false assumptions, but also because they lack the resources to offer robust defense mechanisms and cybersecurity training for its employees.
This inevitably leads to gaps in security, making the company’s infrastructure more likely to be breached. If that ends up happening, businesses may suffer catastrophic results, including severe financial damage, critical operational disruption, data theft, and loss of credibility.
The internet has become a hotbed of cybersecurity threats, so it’s fundamental to stay vigilant, whether you’re a CEO, administrator, or an entry-level employee. Small business cybersecurity threats include:
| Threat | Description | Example |
|---|---|---|
| Phishing | Social engineering attack that consists of impersonating legitimate entities to steal sensitive data. | Cybercriminals send emails with malicious links or attachments that impersonate banks, providing an entry point for breaches. |
| Business Email Compromise (BEC) | Advanced form of phishing where the attacker impersonates a specific individual for greater manipulation. | A hacker impersonates the CEO of a company and sends a fraudulent email requesting the transfer of money to a fake bank account. |
| Malware | Malicious software designed to infiltrate, harm, and exploit systems. Includes viruses, trojan horses, ransomware, spyware, adware, and rootkits. | A bad actor leads you to downloading an infected file disguised as a legitimate software, which encrypts business files once opened. |
| Insider threats | Intentional or accidental misuse of company assets by employees, contractors, or partners. | After resigning, a former employee retains access to the company’s online infrastructure and leaks confidential information. |
| Denial of Service (DoS) | Overload of a business’s website or network, rendering it inaccessible. | A competitor hires a cybercrime group to flood a small e-commerce store with excessive traffic, taking it offline. |
| System vulnerabilities and outdated software | Exploitation of unpatched systems and outdated software for breaches. | A hacker group takes advantage of an outdated POS system for stealing credit card data. |
| Weak passwords | Exploitation of weak and reused passwords by brute force or other cracking techniques. | An employee uses passwords like ‘12345’, leading to unauthorized access to the company’s network. |
With a list this long, it might look impossible to keep all threats at bay but it’s actually easier than it looks. For example, most of these dangers can be mitigated with an internet security solution.
Small businesses must take cybersecurity prevention measures to ensure they can operate continuously without disruptions. The truth is that business owners and administrators who include these in their strategic planning not only safeguard their business but also build customer trust.
Take advantage of software designed to protect systems and networks from cyberattacks. This includes setting up firewalls, antivirus software, secure browsers, secure email services, online backup services, and business-oriented VPNs like . Alternatively, there are solutions, such as and that merge most of these security tools in a complete cyber protection package.
It’s important that the whole workforce is up to date with cybersecurity dangers. If employees understand the concepts of cybercrimes, how they’re perpetrated, and how to spot them, their company is less likely to be attacked. Cybersecurity programs are usually available via workshops and online courses.
Small businesses must implement resilient password policies like enforcing complex passwords for every account, MFA, and prohibiting vulnerable credential sharing. The best option to manage this is to use a password manager.
These solutions provide a secure vault for password storage and management. They include features like encrypted password sharing, data breach monitoring, activity reports, biometric logins, and role-based enforcement policies.
It’s fundamental that a business’s most critical data is backed up at regular intervals to encrypted secure storage services. Online backup solutions include automatic backups, cloud storage, file version history, and data compression. If an attack like ransomware happens, then at least you know your company’s data is safe.
Companies must establish policies that guarantee all operating systems, devices, and applications are always up to date. For example, security software solutions with patch management offer automatic updates, which removes the burden of tracking them manually.
Having an emergency response plan in case of cyberattack is vital. It should clearly outline everyone’s role during a breach, including clear steps to mitigate attacks, communication procedures, and recovery protocols. In addition, it’s recommended to test the plan from time to time by simulating real-life scenarios, evaluate the response, and adjust it according to the results.
Small businesses are often working with limited finances, which can lead to neglecting cybersecurity tools. However, budget-friendly solutions catered to small businesses can protect them without costing too much.
We can’t argue with the fact that the internet brings more dangers day by day, and small businesses should pay particular attention. Unfortunately, unfounded misconceptions about the importance of cybersecurity for small-scale companies sometimes lead to tragic results.
The truth is that it’s beyond essential to protect small businesses, by purchasing or subscribing to online security solutions and by learning about how cyberattacks work.
Implementing a few security measures goes a long way, and even with a low budget, there are plenty of affordable solutions to make businesses more secure, regardless of size.
It’s essential to take a step back, thoroughly analyze your business’s online infrastructure, and create a cybersecurity checklist that addresses all potential vulnerabilities. Whether you provide your workforce with online security training or set up an online backup solution, taking the first step is essential for fostering healthy business growth.
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