4 Common Cybersecurity Threats to Small Businesses

The internet can be invaluable for a small business, but it can also harbor dangers that present cybersecurity threats to small business. Cybersecurity statistics show 46% of all cyber breaches hit businesses with fewer than 1,000 employees, and 85% of ransomware attacks in 2023 were aimed at small businesses. Big companies may have the resources to combat digital risks, and may even have an in-house cybersecurity staff. That’s why small businesses are attractive targets for cyberattacks: they often lack critical security infrastructure, leaving them open to attacks of various kinds.

Protecting your business starts with educating yourself about threats and implementing measures to combat them. When developing a cybersecurity plan for your small business, make sure you and your employees know the current cybersecurity issues facing small businesses. The key to your cybersecurity solution is getting protected before a data breach puts your business in jeopardy. 

Cybersecurity insurance protects against losses caused by a data breach or lapses in online security. It  can also cover lost profits caused by business disruptions as well as legal and investigation costs. 

Make sure you are covered, and make sure you and your employees take these four cybersecurity threats seriously.  

Uneducated or Careless Employees

No small business owner wants their company to be targeted by a cyberattack, and no employee wants to be the reason the attack occurred. As a small business owner, it’s your responsibility to educate employees about online security for businesses.

Be sure to teach your employees how to protect your business from online threats, such as password hacking. Train your employees to secure social media accounts, follow proper protocol for handling corporate information, use devices only on secured networks and refrain from installing unapproved software or apps on company devices.

If you need guidance, the Federal Communications Commission (FCC) has created a guide that outlines best practices for employee IT security training, exploring everything from network and website security to payment cards and incident reporting.

Viruses, Malware and Scams Lurking in Emails

Cybersecurity issues come in many forms, from phony malware to so-called Trojan horses. If these kinds of software-based intruders are accidentally installed on your systems and go undetected, they can cause serious damage to your business.

The Small Business Administration (SBA) urges caution when clicking links or downloading email attachments. And be extra careful in checking the senders of suspicious emails — phishing attempts often come from email addresses you’re familiar with, but with slight variations in the name. Attackers can also pose as someone you know, asking for help or secure information.

Whenever you or your employees are suspicious, err on the side of caution and do not respond to dubious emails or open attachments and links. Confirm with the sender separately rather than risk your business’s security.

Unprotected Customer Information

Whether you’re a brick-and-mortar shop or ecommerce business, keeping your customers’ information secure should be a priority. The FCC recommends identifying what customer information is necessary to store. Remember that any information you keep needs to be carefully guarded to avoid exposing your customers to fraud. Decide who has access to payment systems and isolate those systems. You might choose to take steps such as cutting off web browsing at point-of-sale terminals. Furthermore, the SBA encourages working with banks and card processors to keep your anti-fraud tools current.

Failing to Back Up Your Data

It’s a good idea to regularly back up data, especially for businesses with high cybersecurity risks. In the event of a data breach or malware attack, having a secure data reserve could protect your company. Use a cloud service or offsite location to store regular backups of accounts receivable/payable, human resources and financial data. According to the FCC, small businesses should also plan for a data breach for the purpose of understanding just how seriously a cyberattack could harm the company.

Is Your Business Protected From Cybersecurity Threats?

Talk to your Farm Bureau agent about data breach coverage. Farm Bureau commercial business insurance provides reimbursement for investigating the breach, helps you notify affected customers and includes restoration services and liability protection.