Nowadays, cybersecurity is essential to the normal functioning of companies. Cybercriminals have shifted their focus onto small businesses, which have historically been overlooked as easier prey for big businesses. In truth, research indicates that lesser known businesses are usually the victims of cyber fraud. This is because cyber criminals calculate that they are likely to have lesser security protocols or measures in place which makes them vulnerable. Cyberattacks can be notably damaging as they not only incur monetary losses but also damage a company’s reputation and could lead to legal issues.
The article will delve into the various ways that small scale enterprises can protect themselves against cyber fraud and why having a protection plan in place is of utmost importance in today’s digital world.
New technology has introduced new possibilities for small scale business owners. Reaching newer customers, expanding operational capabilities and providing greater service are just a few advancements that can be utilized. Alongside these new changes comes the risk of exploitation from cyber criminals. Lesser known businesses are often storing valuable sensitive data like card numbers, phone numbers, and addresses which hackers can target.
As we all know, cyberattacks can take various forms such as phishing fraud, identity theft, information breaches, and the use of viruses. Such attacks may lead to operational interruptions, loss of data, and even financial blackmail. Research suggests that approximately 43% of all cyber crimes are directed towards small businesses, and 60% of these are forced to shut down within six months of a cyber attack because of the damage incurred.
In addition, due to a lack of resources, skills, or support, small businesses have no means of recovering from the damage incurred by a cyberattack and are, therefore, easy targets. This highlights the fact that protecting against cybersecurity threats is not just important but vital for the survival of the business, customer loyalty, and meeting legal standards.
The Economic Consequences of Cyberattacks on Small Enterprises
Small businesses can suffer immensely from a cyberattack- both in the short term and long term. The primary and most obvious costs include:
• Costly ransom payments during ransomware attacks
• Legal expenses from data breaches or fines
• Loss of revenue from slowed business activities, loss of customers, and loss of trust
• Expense incurred to repair a tarnished image
Small businesses may also be forced to write off certain customers, pay substantial legal compensation, and improve their network security after suffering an attack. All these factors could cause severe financial strain in the long run.
At times, the damages can be catastrophic. Businesses that fail to protect data lose customer trust as the brand becomes associated with poor data protection. Over time, numerous other issues such as degrading sales and a low brand reputation begin to surface. As the sophistication of cyberattacks increases, it becomes imperative for small enterprises to enforce cybersecurity measures.
Reasons Behind the Targeting of Small Businesses
Businesses and their ecosystems have become easier to infiltrate with the advancements in technology. These reasons make small businesses low-hanging fruit for cybercriminals:
- Resource Scarcity: Most small businesses lack the level of resources larger corporations possess, thus making it more difficult for them to allocate funds towards advanced cybersecurity tools and personnel.
- Subpar Security Procedures: Outdated or easy to breach software are often relied upon by many small businesses and these systems are an example of something that can be easily exploited. For instance, failing to change default user passwords or not implementing consistent software updates.
- Important Information: Small businesses are likely to have sensitive information, for example customer details, payment information, and business strategies, which makes the business an easy target for hackers.
- Low Perception: Small business owners are not likely to be well-versed with the consequences that cyber threats may pose or tend to underestimate the degree of damage that an attack can lead to.
As is common knowledge, small businesses do not have the same level of cybersecurity expenditures when compared to larger companies, meaning there is a gap that criminals can exploit. The solution is for these businesses to start adopting these protective measures and invest in proper cybersecurity systems in order to lessen the chance of falling victim to these attacks.
How to Choose the Right Cybersecurity Solutions?
Selecting proper cybersecurity solutions is no easy feat for small companies because they are constantly changing and there are many choices. Consider these factors in particular that are most relevant for small business owners when choosing cybersecurity measures to defend against cyber breaches:
a. Assess Your Risks And Vulnerabilities
The first phase of developing a cybersecurity strategy is the self-assessment phase. That means that identifying relevant risks in your organization, especially proprietary information that is crucial and sensitive, the hardware employed, and the possible threats towards the organization as a whole should be deduced. If for example your organization uses email as its primary mode of communication, prioritizing email security would make sense. On the other hand, businesses that deal with financial transactions over the internet should have secure payment gateways and encryption technology for safekeeping.
A risk assessment will inform you of gaps in your ailing security setup such that you can make informed choices towards an adequate solution.
Multi-Layered Security Solutions Investment For small businesses, a single solution for cybersecurity like everything else won’t work. There is a minimum set of defenses that should be put in place to defend against possible cyberattacks and this is a multi-layered approach. Some of the multi-layered approaches may include:
• A firewall system is the primary step to be put in place. A firewall is likened to fire doors in a building, they block the access from the internet until the user decides to grant permission.
• Deploying antivirus and anti-malware software. Having these systems in place is vital so that the harmful software does not destroy your systems.
• Use of Encryption. Encrypting is translating sensitive data as a code that is difficult to interpret as it can be by anyone who tries to access it.
• IDS helps monitor the activity of the network and the traffic flowing into it. In the event there is any abnormal, suspicious activity happening in the network, it informs the administrator.
By adopting a multi-level layered approach, small businesses will be safeguarded from most cyber threats.
c. Routine Data Copies
The magnitude of issues that can emerge from data loss is an even larger threat for small companies, particularly when coming under fire from a cyber attack, such as ransomware. Regular backups of data are essential for damage control so that important files and data can be retrieved during an attack. Backups should be stored somewhere in the cloud because it is necessary to protect them from local catastrophes such as floods, fire, etc.
d. Educating Employees
One of the most vital facets to cover under cyber security is employee training on appropriate security procedures. Employees are single handedly the weakest link in a company’s security chain, by opening phishing emails, ignoring policies and using low level passwords. Regular training and awareness sessions can enable employees to understand the possibilities of attacks and how to avoid them.
e. Think About Outsourced Security Services
Small businesses who have no headcount or budget for an internal IT department may consider professional cyber security solutions with managed security service providers (MSSPs). Managed security service providers offer and take responsibility for constant monitoring, threat identification, and incident handling. This way, business owners can allocate their time to developing their business and rest assured that cyber security is in the right hands.
Final Comments
It is no longer a question of whether small businesses need cybersecurity; it is a requirement now. Because cybercriminals are paying greater attention to small businesses, it is important to spend on the right tools and strategies to defend sensitive data, uphold customers’ trust, and secure the continuity of the business. Small businesses can safeguard themselves from expensive cyberattacks and build a well-balanced digital ecosystem by understanding the risks, hosting security measures, and educating staff members on the following.
Even though there is no single approach that guarantees immunity from all attacks, these proactive steps toward and the use of cybersecurity tools will go a long way towards ensuring small businesses flourish in the modern world.