Small Business Safety: How Data Breaches Affect You

The Impact of Data Breaches on Small Business

Some may think that small businesses are too small to be targeted by cyber attackers or that their information is not valuable enough – but this is far from the truth. Small businesses are just as susceptible to attacks as any larger company or individual. In fact, small organizations may be even more likely to be targeted by a ransomware attack, which holds the victim’s device or account hostage unless they pay a ransom to the attacker.

In addition to security concerns, significant financial concerns are at play – data breaches are expensive! The cost of remedying a data breach or ransomware attack is far more detrimental for small and medium-sized businesses than for larger corporations.

Common costs associated with data breaches include:

• monetary theft
• system restoration and repair
• regulatory and compliance fines
• legal fees
• public relations damage control
• insurance premium increases
• notifying and remedying consumer damage

Altogether, expenses could range in the thousands to millions of dollars, depending on the severity of the attack. Because of the extensive implications associated with data breaches and other cyber attacks, it’s crucial for employers and employees to be aware of the vulnerabilities of inadequate security measures – and to ensure everyone understands the importance of protecting business and consumer data.

Steps to Protect Your Company’s & Customers’ Data

Every effort you put into place to protect your business and customer data is a step in the right direction. Begin by developing cybersecurity policies and then testing your employees’ knowledge regularly.

• Develop Comprehensive Security Policies: The more thorough and enforced your organization’s security policies and practices are, the more difficult it will be for a cybercriminal to strike successfully. Hiring a third-party cybersecurity company for assistance may be the perfect solution. 

• Train Employees: Provide regular cybersecurity training for your staff. Show your employees what they should do, red flags to look out for, and things they should avoid at all costs. For extra credit, you can even provide tailored training to the different areas of the company. 

• Perform Safety Drills: To ensure your employees have a solid grasp of cybersecurity principles and further enforce their training, you can have drills to test their knowledge. Consider regular quizzes, send staff fictitious phishing emails to test their reactions, and more. 

Steps Employees Can Take Toward Cybersecurity

Some of the most sophisticated cyberattacks in history began on the employee level through simple phishing emails. Training employees and setting safeguards against potential attacks is the best line of defense.

• Update Software: Ensure your employees keep all their software and applications up-to-date, especially the operating system. Tech companies are constantly updating their programs upon learning of potential vulnerabilities. Maintaining up-to-date software is one of the best ways to reduce the risk of a cyberattack. 

• Use Strong Passwords: The stronger the password, the more difficult it is for the hacker to crack. In addition to increasing password strength, urge your employees to use separate passwords for their work accounts from their personal accounts. Using the same or similar passwords makes it easier for bad actors to gain access to multiple accounts with one cracked or leaked password. 

• Use a Password Manager: Trying to memorize all your passwords is no easy feat. Rather than trying to manage it alone, eliminate the risk of human error and opt for a password manager. Many companies offer this service at little to no cost. 

• Enable Multi-Factor Authentication: Enabling multi-factor authentication (or MFA) on every login adds another layer of protection to your accounts. MFA uses security codes and other login verification methods to ensure that you and only you are accessing the account. 

• Don’t Click Links, Open Attachments, or Download Files: Never click on links, open attachments, or download files from an unknown sender. Verify with your organization’s IT department or provider if you are ever unsure of the validity of an email or text message to a company device. Phishing emails remain one of the leading causes of cybercrime.

Security Resources for Small Businesses

Cybersecurity is constantly evolving, and it can be challenging for a small business owner to keep up. Instead of going it alone, utilize the following resources to keep your company and customers safe.

• Identity Theft Resource Center: The ITRC is a non-profit organization established to minimize risk and mitigate the impact of identity compromise. They offer a variety of educational materials, custom training for businesses, research and reports, notification systems, and more. 

• Federal Trade Commission: The FTC offers an online cybersecurity center dedicated to small businesses. Their available resources include guides, videos, quizzes, and more. 

• National Cybersecurity Alliance: Their CyberSecure My Business^TM is a national program helping small and medium-sized businesses learn to be safer and more secure online. 

• The National Institute of Standards and Technology: NIST provides a Small Business Cybersecurity Corner with guides, training, videos, and more. 

We’re Here to Help!

You work hard to ensure your business runs smoothly daily – don’t let cyberattacks rain on your parade. By staying on top of current cybersecurity safety standards and encouraging your team to uphold best practices, you can keep your company’s and customers’ data safe and prevent it from falling into the hands of cybercriminals.

If you want to learn more about our financial products and services tailored to small businesses, we’re ready to help. Please call 888-777-9982 or stop by any of our convenient branch locations for any assistance.