The Importance of Cybersecurity for Small Businesses

Small businesses are the number one target of Cyber attacks and data breaches worldwide.  Around 57% of small business owners believe they are not the target of cyber threats, as per the Forbes Magazine. Most businesses in the United States, Canada, and other developed countries have already adopted technology in one way or another.

Similar to large businesses, small business owners also have a lot of sensitive data that includes customer’s names, credit card numbers, email addresses, and insurance details. At the same time, small business owners are less likely to take cyber security seriously, which has serious consequences such as loss of credibility, financial loss, operational disruptions, and legal battles. 

What are the Common Cyber Threats for Small Businesses?

Small business owners are open to all kinds of cyber threats as they are less likely to implement even common cyber security measures. Here are some of the common cyber threats for Small Businesses. 

Phishing Attacks

Small businesses are more likely to be affected by phishing attacks as they are less likely to be aware of these types of cyber attacks. Digital thieves can easily trick employees and owners of small businesses by sending phishing emails. Small businesses usually have limited cyber security and are less likely to use any email filtering systems to prevent phishing email attacks.

Ransomware

Small businesses are less likely to have any backup systems or cyber security defenses against ransomware. Digital thieves encrypt files on the victim’s computer or network and prevent their access until a ransom is paid. Since 2019, there has been a 25% rise in ransomware attacks on small businesses in the United States and Canada.

Weak Passwords

Easily guessable passwords and weak passwords provide a golden opportunity to Cybercriminals as they can exploit these types of passwords to gain authorised access to sensitive information. 

Outdated Software

Software developers fix vulnerabilities through regular updates, and neglecting those regular updates may also lead to various kinds of Cyber attacks. Cybercriminals are more likely to attack small businesses with outdated software and gain access to install Malware or initiate other kinds of Cyber attacks.

What are the Consequences of Cyber Attacks on Small Businesses?

Similar to cyber attacks on big businesses and large Enterprises, cyber attacks on small businesses can also have devastating effects. Let’s look at some of the most common consequences of Cyber attacks on small businesses.

Financial losses

Cyber attacks can lead to both direct and indirect financial losses. The attackers may steal funds from bank accounts or wallets or demand ransom payments. In addition, the business may have to bear the cost of system repair, data recovery, and forensic investigation. Indirect financial losses from a cyber impact may also include loss in sales, downtime, fines for non-compliance, etc. 

Damaged Reputation

Slow healing, Loss of Trust, and Reputational Damage are a major part of a cyber attack on a business of any size. Small businesses are less likely to completely heal from a cyber attack than large enterprises. Small businesses rely on regular customers, and cyber attacks can break, which can even result in customer loss. 

Legal and Regulatory Penalties

Cyber attacks may also result in legal repercussions and regulatory penalties. The government has introduced several data protection laws, such as GDPR, HIPAA, or PCI DSS, and non-compliance with these laws may attract legal repercussions and regulatory penalties. In some cases, cyber-attacks may also result in lawsuits from affected customers or partners.

Operational Disruption

There is no bigger loss for any business than operational disruption and downtime. Cyber attacks not only affect the reputation, finances and attract legal repercussions, but they also interrupt day-to-day work. Any kind of halt in business operations multifold the reputation damage. 

How Small Businesses Can Improve Their Cybersecurity?

Small businesses can improve their cybersecurity using various precautions, methods, and services of an expert. Small changes like using strong passwords can help them protect sensitive data, maintain customer trust, and ensure business continuity.

Employee Training

Regular Cyber Awareness Training sessions for employees to educate them about the latest cyber threats can drastically improve your cybersecurity. We train employees on how to recognise common and newly emerged cyber security threats such as phishing emails, weak passwords, etc. We also teach employees how to handle any security breach, incident reporting protocols, and secure use of company devices. 

Strong Password Policy

Complex passwords and password protection are the first steps for any business toward cyber security. Our Identity & Access Management program encourages, helps, and assists business employees in using strong and unique passwords for each account. A strong password should be a unique combination of letters, numbers, and special characters. Multi-factor authentication is the second recommended layer for a strong password policy. 

Regular Data Backups

Small businesses should also opt for regular data backups to prevent critical data loss in the event of a cyber attack. Data backups are also important for response and recovery after the attack and seamless operations without any downtime. They lower the cost of recovery and help maintain trust with customers. 

Conclusion

Small businesses must prioritize cyber security to protect their precious assets from digital thieves. These thieves may use various techniques, such as ransomware and phishing attacks, to attack small businesses. These attacks may lead to operational disruption, reputational damage, and financial losses. 

There are various ways you can use to protect your business from these thieves. Small things like employee training, regular backups, and a strong password policy can help them protect their assets and take a step forward in cybersecurity.