Protect Your Small Business From Cyber Attacks

Small businesses are often described as the perfect embodiment of the entrepreneurial spirit and are essential for any healthy economy. This makes a lot of sense, knowing they foster new business opportunities, create more workplaces, and help larger enterprises grow through specialized services.

But many small businesses have one huge flaw that hackers love to exploit, and that’s their lack of cybersecurity awareness. In fact, they often have no cybersecurity budget and very limited personnel who are supposed to take care of the company’s cybersecurity.

In 2024, 43% of cyberattacks targeted small businesses—almost half of the annual cyber incidents focused solely on this niche! Why is this the case, and what can small business owners and employees do to ensure their companies fall on the good side of such a statistic?

Why Do Small Businesses Fall Victim to Cyber Attacks?

To be short and precise, small businesses are often ideal hacking targets because they hold valuable client data, often neglect basic cybersecurity practices, and lack overall security awareness.

It all starts with what small businesses have

Client databases are a goldmine for hackers. Many businesses store personal, financial, and preference information to offer personalized experiences. While forward-thinking businesses use this data effectively, they often fail to protect it properly. This leaves sensitive information exposed and highly attractive to hackers.

And what they don’t

The problem often starts with a lack of budget for cybersecurity essentials like software, system updates, or advanced protection tools. On top of that, small businesses typically don’t employ cybersecurity experts or consultants to monitor threats and maintain security. But the most common reason small businesses are vulnerable to cyberattacks is their lack of awareness about potential risks.

A survey completed by CNBC found that more than half of small business owners in America don’t consider cyberattacks a threat worth considering. Some owners assume that basic security protections are enough, and others think their business is too small to be a target, so hackers take advantage of this viewpoint. They cause legal ramifications along with financial and reputational damage some companies can never recover from.

What Threats Do Small Businesses Face?

Hackers usually target small businesses in two ways. They either send phishing emails to steal business data or use ransomware to attack devices or systems and demand money in return.

Phishing email attacks

Phishing and variants of it, like spear phishing or business email compromise (BEC), are the most common and effective methods of gaining access to business information.

It’s a social engineering scam in which emails or social media messages trick company employees into performing harmful actions. The sender may impersonate a vendor, claiming there’s a problem, and require the victim to confirm their login credentials to solve the issue. Once obtained, the scammers use the credentials to gain control of the real account, compromise others, and even access internal databases if the credentials are the same.

A successful phishing scam is usually not a one-trick pony. It can lead to compromised internal accounts across the entire company. These allow scammers to impersonate someone with a leadership position within the company and trick unsuspecting employees into authorizing money or sensitive data transfers directly to the criminals.

Ransomware attacks

Phishing emails can also deliver ransomware, which is one of the most common types of malware. It’s incredibly easy to encounter ransonware through unsafe browsing or an employee’s lack of attention to detail when interacting with suspicious emails. Ransomware often appears as an attached document or link that, once clicked, takes only seconds to infiltrate a device’s system.

Once ransomware enters employee devices, it encrypts crucial files, locks down systems, and spreads to other devices using the same network. The most sophisticated types of encryption are almost impossible to break without the key that hackers use. This is why paying a ransom is usually the only way for businesses with weak cybersecurity precautions to regain control of their files and systems.

Since ransomware attacks usually cost around $5,900, small businesses should really think about whether they can afford the risk. The answer should be very clear because it’s not just about the money they could lose; it’s also about the damage to their reputation.

How Can Small Businesses Protect Themselves?

It’s never too late to start, nor is it ever too soon to care when it comes to small businesses and their cybersecurity measures. So, the first step for any small business is to recognize that cyberattacks can make them victims anytime. With this mindset, even businesses with small cybersecurity budgets can use effective and affordable solutions to make a huge difference.

Make sure devices are updated

Ensure that operating systems and all software used on company devices get regular, automatic updates. This is a really easy and free way of practicing cybersecurity, which helps your devices be less vulnerable to known exploits.

Use cyber defense tools

Implementing tools like antivirus and firewalls can prevent company employees from accidentally downloading dangerous files, visiting restricted sites, and keeping harmful traffic away from your network. Using a VPN can also be a great and cost-effective solution for establishing protected and confidential access to company resources for remote employees.

Teach your employees about cybersecurity

Cybersecurity training for your staff can go a long way, especially since human errors are usually the main reason hacking attempts succeed. A session or two may already be enough to teach employees how to recognize threats like phishing attempts and understand secure ways to share sensitive information.

Secure your business passwords

You can try out tools like business password managers to ensure that your business accounts have strong passwords and are shared securely within the company. Password managers can also be used to control access rights for individual employees and monitor their activities, allowing you to identify and address any unusual behavior quickly.

Reddit is full of threads that review the best business password managers in the market, making it very easy to pick the right one for your business needs.

Investigate your vendors

Small businesses often depend on third-party vendors for digital services. So, having a thorough vetting process for which vendors to trust can significantly reduce the risk of data breaches caused by weak cybersecurity practices on the vendor’s part.

Conclusion

Given the likelihood and high costs of cyber incidents, no small business can afford to ignore cybersecurity. Even a few smart measures can make a huge impact. So, why not start protecting your business today and make cybersecurity part of your everyday operations?