Protecting Your Business
Critical Security Risks Small Businesses Face
Introduction
Small businesses are targets for cyberattacks. This short report aims to provide an overview of the top three security risks that small businesses should be aware of. By understanding these risks, you can proactively protect your business and ensure its continuity.
Phishing Attacks
Overview
Phishing attacks are fraudulent attempts to obtain sensitive information such as usernames, passwords, and credit card details by disguising themselves as trustworthy entities in electronic communications. Over the years, these attacks have become more sophisticated, significantly threatening small businesses.
Why It's a Risk
Many small businesses lack the robust cybersecurity measures of larger corporations, making them more vulnerable to phishing attacks. Employees clicking on a malicious link or entering their credentials on a fake website can lead to data breaches, financial loss, and reputational damage. Ransomware attacks, which often start with phishing emails, cost an average of $5.13 million in 2023, a 13% increase from the previous year.1
Fig1. Most expensive industries for data breaches in 2022 4
Prevention Tips
Educate Employees: Regularly train your employees to identify phishing emails.
Use Email Filters: Deploy advanced email security solutions to filter out phishing attempts.
Enable Multi-Factor Authentication: Add an extra layer of security for accessing sensitive information.
Ransomware
Overview
Ransomware is malicious software designed to block access to a computer system until a sum of money is paid. Cybercriminals often target small businesses, knowing they may not have adequate backups or ransomware countermeasures.
Why It's a Risk
A ransomware attack can cripple a small business by locking essential data and systems. Paying the ransom does not guarantee the restoration of your data and often encourages further criminal activity. The average downtime caused by ransomware attacks was reported to be 24 days, estimated at $5.1 million per organization, due to lost productivity and revenue, IT labour, and post-attack expenses.2
Fig. 2 The true costs of a security breach 5
Prevention Tips
Regular Backups: Ensure your data is backed up regularly and stored offline or in a secure cloud environment.
Keep Software Updated: Regularly update your operating systems and software to patch security vulnerabilities.
Implement Security Protocols: Use reputable antivirus and anti-malware solutions to detect and prevent ransomware infections.
Insider Threats
Overview
Insider threats involve employees or other individuals within the organization who might misuse their access to sensitive information. These can be intentional sabotage or unintentional mistakes leading to security breaches.
Why It's a Risk
Small businesses often have limited resources to monitor and manage insider threats effectively. This risk is exacerbated when employees have access to more information than necessary for their job roles. Increasingly, insurance companies require businesses to provide evidence of controls in place. The average cost of such incidents can range from $11.5 million to $18.33 million, depending on the time taken to detect and respond to the threat.
Prevention Tips
Access Controls: Implement strict access control measures to ensure employees have access only to the information they need.
Regular Audits: Conduct security audits and monitor user activities for unusual behaviour. You may be required to by law.
Employee Training: Educate employees about the importance of data security and the potential consequences of insider threats.
Addressing these top three security risks can significantly improve your business's resilience against cyber threats in 2024. Implementing the prevention tips provided can help safeguard your business's valuable information and maintain trust with your customers.
Fig. 3 Top causes of insider threats 3
Sources
