5 Common Cybersecurity Risks For Small Business

Running a small business can be tough enough without worrying about cybersecurity threats. Yet, the reality is small businesses are a prime target for cybercriminals. Why? Because they often have weaker defences and valuable data that can be exploited for financial gain. 

We often hear about high-profile cyber attacks on large organizations, but small businesses are just as vulnerable, if not more so. Unlike large corporations, small businesses may not have the resources to pay millions of dollars in ransom or recover from a major data breach. This makes it even more important for small businesses to take cybersecurity seriously and implement robust security measures to protect their systems and data.

It’s, therefore, essential to understand these risks and take proactive steps to protect your business. In this article, we’ll dive into the top five cybersecurity risks that every small business needs to know about. From phishing scams to ransomware attacks, we’ll cover the latest threats and provide practical tips to keep your business safe.

So, whether you’re a startup founder or a small business owner with years of experience, this article is for you. By the end of this post, you’ll better understand the cybersecurity landscape and the steps you can take to safeguard your business from the ever-evolving threats of the digital age.

#1. Phishing Scams

Phishing is one of the commonest techniques cybercriminals use to trick individuals into divulging sensitive information, such as login credentials or credit card numbers. In a typical phishing scam, the attacker sends an email that appears to be from a reputable source, such as a bank or an e-commerce site. The email will usually contain a link to a fake website that looks real but is designed to steal your information.

Small businesses are particularly vulnerable to phishing attacks because they often lack the resources to invest in advanced security systems. As a result, employees may be more likely to fall for a phishing scam. According to Cofense Intelligence, 2022 witnessed a significant surge in malicious phishing emails by a staggering 569% and an alarming 478% increase in reports related to credential phishing threats.

To mitigate this risk, educating your employees about the dangers of phishing and how to recognize suspicious emails is important. You can also implement two-factor authentication and other security measures to protect sensitive data.

Additionally, you can use anti-phishing software to detect and prevent phishing attempts. A few effective ones include;

• LayerX (Browser-based) 
• Talon (Browser based)
• SlashNext (API based)
• Perception Point (API based)
• Ironscales (Email based)
• Abnormal (Email based)

#2. Malware Attacks

Malware is a type of software that is designed to harm your computer or steal your data. This includes viruses, spyware, and other malicious programs that can infect your systems through email attachments, downloads, or other sources.

Malware can cause various problems for your business, including data theft, system damage, and financial loss. Ransomware is malware that encrypts your files and demands payment in exchange for the decryption key. To protect your business from malware attacks, it’s crucial to implement strong security measures, such as firewalls, antivirus software, and intrusion detection systems. 

Firewalls can block unauthorized access to your network, while antivirus software can detect and remove malware from your systems. Intrusion detection systems can monitor your network for suspicious activity and alert you to potential threats.

It’s also important to educate your employees about the dangers of malware and how to avoid infection. This includes avoiding suspicious websites, not clicking links or attachments from unknown sources, and keeping software up-to-date. Regular software updates can help patch vulnerabilities that cybercriminals could exploit.

In addition, strengthening cybersecurity  includes having a robust backup strategy to protect your data in the event of a malware attack and regularly backing up your data to a secure location, such as a cloud storage provider or an external hard drive.

#3. Insider Threats

While cybercriminals pose a significant threat to small businesses, insiders can also cause damage. Whether intentional or accidental, employees may expose sensitive data or compromise your systems. This can happen through social engineering attacks, such as phishing, or through careless mistakes, such as leaving a laptop unattended.

According to the 2020 Verizon Data Breach Investigations Report, 30% of data breaches involved insiders. Additionally, the report found that small businesses were the target of 22% of these attacks.

To mitigate the risk of insider threats, it’s important to implement strict access controls and monitoring procedures. This means limiting access to sensitive data and systems only to employees needing it. You should also monitor employee activity for suspicious behavior, such as unauthorized access or unusual network activity.

Implementing a security awareness training program can also help employees understand the importance of data security and the risks associated with insider threats. By educating employees about best practices for data security, you can reduce the likelihood of accidental breaches and improve overall cybersecurity. You should also seek ways to strengthen your security team.

#4. Ransomware Attacks

A ransomware attack is malicious software that encrypts a victim’s files or data and demands a ransom payment for the decryption key. Ransomware can be delivered to a victim’s computer through phishing emails, malicious websites, or through vulnerabilities in software or operating systems. Once the ransomware infects a system, it can quickly spread to other connected devices or servers, resulting in devastating consequences for individuals or businesses.

Several high-profile ransomware attacks have occurred in recent years, including WannaCry, Petya, and Locky. Small businesses are particularly vulnerable to these attacks due to limited resources for cybersecurity and a lack of employee education on how to identify them. To protect themselves from ransomware attacks, small businesses should regularly back up their data to a secure location, keep software and operating systems up to date with the latest security patches, train employees on how to identify and avoid phishing emails, and invest in robust cybersecurity solutions such as firewalls, antivirus software, and intrusion detection systems.

#5. Social Engineering Attacks

Cybercriminals use social engineering to trick people into disclosing private information or taking actions that could jeopardize their security. This can be done through various methods, including phishing emails, baiting, pretexting or in-person interactions.

We’ve earlier discussed phishing and how to protect your business against it. Another type of social engineering attack is baiting, where the attacker offers value, such as free software or music download, in exchange for the victim’s personal information. Once the victim enters their information, the attacker uses it to access their accounts or commit identity theft. 

Pretexting is another social engineering attack where the attacker pretends to be someone else, such as a company employee or a government official, to obtain sensitive information or access systems. Cybercriminals can impersonate a trusted individual, such as an IT technician, and ask for sensitive information or systems access. This can be especially effective if the attacker can build trust with the victim over time.

So, how can you protect your small business from social engineering attacks? Firstly, educate your employees about social engineering attacks and train them to recognize and respond to such attacks. Secondly, implement strong password policies, requiring employees to use and change passwords regularly. Thirdly, small businesses should use multi-factor authentication, which adds an extra layer of security by requiring users to provide additional authentication factors, such as a fingerprint or a code sent to their phone and their password.

Lastly, you can minimize cybersecurity risks for your small business with bitdefender total security. You should also regularly update your software and systems to protect them against the latest threats and devastating effects of social engineering attacks.

Conclusion

As you can see, small businesses face various cybersecurity risks that can threaten their financial stability and reputation. From phishing scams to social engineering attacks, cybercriminals are constantly evolving tactics to exploit your systems’ vulnerabilities and steal your data. 

Ensure to implement strong security measures, educate your employees, and stay up-to-date on the latest threats and trends in the cybersecurity landscape. Remember, prevention is key, and investing in cybersecurity now can save you a lot of headaches and heartache down the road.