Safeguarding digital properties from unauthorized access, theft, or damage, otherwise known as cyber security, is an essential facet of any business strategy. This is particularly true for small enterprises that might not have the necessary resources or expertise to handle cyber threats.
How is cyber security significant for small businesses?
Cyber criminals often target small businesses, seeing them as easy targets. Verizon's report showed that 28% of data breaches in 2020 involved small businesses. The types of cyber threats frequently encountered by small businesses include:
Phishing: This tactic involves cyber criminals sending deceptive emails or messages pretending to be from legitimate sources such as banks, suppliers, or customers. The objective is to trick the recipients into clicking on harmful links, opening infected attachments, or disclosing sensitive information.
Ransomware: This form of attack involves cyber criminals encrypting a business's data or systems and then demanding a ransom to restore them. Ransomware can cause significant disruptions and financial losses for small businesses that depend on their data and systems to function.
Malware: In this case, cyber criminals install harmful software on a business's devices or networks, such as viruses, worms, or spyware. Malware can compromise the security and performance of the devices or networks, steal data, or corrupt files.
Denial-of-service: Here, cyber criminals overload a business's website or server with traffic or requests, rendering it unavailable or slow for legitimate users. Denial-of-service can impact the reputation and revenue of a small business that relies on its online presence. The aftermath of a cyber attack can be disastrous for a small business. Possible consequences include:
Data loss: Data, encompassing customer details, financial records, intellectual property, or trade secrets, is among the most precious assets of a small business. Data loss can undermine customers' trust and loyalty, expose the business to legal liabilities, or erode its competitive edge.
Monetary loss: A cyber attack can lead to financial loss for a small business in multiple ways, including ransom payments, system repairs, data recovery, expert hiring, or customer compensation. IBM reported that the average cost of a data breach for a small business in 2020 was $3.86 million.
Reputation damage: A cyber attack can tarnish the reputation of a small business among its customers, partners, suppliers, or regulators. This could result in negative publicity, credibility loss, contract termination, or license revocation.
Productivity loss: A cyber attack can interrupt the operations and processes of a small business, leading to delays, mistakes, or inefficiencies. This can affect product or service quality and delivery, customer satisfaction, employee morale, and innovation.
How can small businesses boost their cyber security?
Cyber security is an ongoing commitment that requires continuous vigilance and adaptation, rather than a one-off investment. Small businesses can adopt some simple measures to bolster their cyber security stance, including:
Employee education: Employees are often the weakest link in cyber security. They must be familiar with the common cyber threats and the methods to prevent them. Small businesses should offer regular training and guidance to their employees on password management, email security, device security, and incident reporting.
System updates: Outdated systems are more susceptible to cyber attacks. Small businesses must ensure that their devices, software, and applications are regularly updated with the latest patches and security features. They should also use antivirus and firewall software to protect their devices and networks from malware and intrusions.
Data backup: Regular data backup is crucial for recovery after a cyber attack. Small businesses should back up their data frequently and store it in a secure location, such as an external hard drive or cloud service. Periodically testing the backups to ensure they work correctly is also essential.
Data encryption: Encryption transforms data into a code that can only be read by authorized individuals. Small businesses should encrypt their data both in storage (on devices or servers) and in transit (when sent over networks). They should also utilize secure protocols such as HTTPS and SSL for their online interactions and transactions.
Policy implementation: Policies are the rules and procedures dictating how a small business manages its data and systems. Small businesses should create policies defining roles and responsibilities, access rights and controls, acceptable use and behavior, incident response and recovery plans, and compliance obligations.
In today's digital age, cyber security isn't an optional luxury for small businesses—it's a critical requirement. By investing in cyber security, small businesses can shield their assets, finances, reputation, and productivity from cyber threats. This investment not only represents a cost but also an opportunity to earn the trust and confidence of customers, partners, and regulators, thereby gaining a competitive advantage in the market.