Data breaches are damaging to businesses of all sizes, but your small business may be significantly impacted if you aren’t prepared. The cost of data breaches is typically in the millions and, according to a report by IBM, around $1.03 million higher when remote work is involved. Hybrid workplaces are opening up companies to more vulnerabilities.
Regardless of whether or not your small business has any remote operations, businesses with under 500 employees are still seeing a massive spike in data breach repercussions. IBM reports that small businesses, on average, saw a 26.8% increase from $2.35 million in 2020 to $2.98 million in 2021.
Those numbers aren’t to be taken lightly. Your employees, consumers, and business as a whole could suffer if you don’t prepare. Fortunately, it’s simple to learn about best practices and technologies available for data breach preparedness to keep your small company afloat — including its reputation and relationship with customers.
How Consumers Are Impacted — And How To Help
The prevalence of customer-targeted cybercrime is rising, illustrated by the two billion data records including consumer login information compromised in 2021. Fraudulent tactics are also becoming less easy to spot for the average consumer and, therefore, more commonly successful.
Cyber attacks are becoming more sophisticated, and consumers could use your help protecting their sensitive information. Traditional methods of digital identity verification are clearly failing in some capacity. Luckily, there are steps you can take to better equip your business and your customers in this age of rising cybersecurity risk.
Common Cybersecurity Risks for Small Businesses
The first step in data breach preparedness is to understand your unique risks. The biggest cybersecurity risks for small businesses include:
- Insider attacks (intentional or unintentional);
- Malware infections;
- Phishing attacks;
- Ransomware attacks;
- Weak passwords;
- Unsecured Wi-Fi networks.
Small businesses are particularly vulnerable in these areas due to their smaller budgets, lack of time, lower number of resources, and possible lack of knowledge. However, you can mitigate these risks by boosting that knowledge and becoming informed on cybersecurity best practices. By addressing these vulnerabilities, businesses can create a robust security foundation and minimize the risk of data breaches.
Data Breach Preparedness Technology
You’re already more prepared than before you started reading this article. Now, beef up your data breach preparedness. Understanding what to do before, during, and after a cyber attack can be the difference between keeping your business or floundering under pressure.
For starters, equip your small organization with the basics for cybersecurity, including:
- Antivirus software: Typically available on most operating systems, research which antivirus software is best for your company and budget. Apply it to all devices used by individuals in your organization.
- Software and system updates: Regularly scheduled updates will help keep vulnerabilities at bay.
- Security audits: Conducting regular audits of your security will keep you aware of vulnerabilities as they arise.
- Virtual private network (VPN): A VPN encrypts your business’ connections so that it’s harder for bad actors to access your information.
- Strong passwords and multi-factor authentication (MFA): Require all employees and customers to use strong passwords and MFA for logins. Teach them how to use a random combination of letters, numbers, and symbols and warn them of the vulnerabilities that can still happen with MFA.
You can even involve biometrics in your authentication process, allowing employees to use their fingerprints or face IDs to access company systems. Education is just as important, if not more so, than equipping your team with the latest cybersecurity technologies. If they don’t know how to use them effectively, they can still open up your organization to cyber attacks unwittingly.
How To Avoid and Deal With Cyber Attacks
In addition to the tech detailed above, you should train employees — and consumers where possible — on data security best practices and policies. Develop a preparedness plan by:
- Identifying current legal requirements for data protection;
- Training employees on data breach laws and policies;
- Restricting sensitive info access to only employees that need it.
You should also prepare for the aftermath of a data breach if one does occur. An incident response plan should include detailed instructions, including how to:
- Report the incident to authorities;
- Enact urgent mitigation involving IT processes for closing vulnerabilities and recovering lost info when possible;
- Conduct an internal investigation to find the source of the breach;
- Audit and improve security measures;
- Take accountability with employees, consumers, and any potential legal ramifications.
If you have a detailed plan for how to prepare for, deal with, and mitigate data breaches, you can lessen the impact they have on your business and consumers. Small businesses are particularly vulnerable, but you are also uniquely positioned to take a proactive, empathetic approach with those affected by a breach. This will instill trust in your company and strengthen the employee and/or consumer relationship in the long run if handled correctly.
Moving Forward
Data breaches continue to pose a significant threat to small businesses and their customers. By adopting proactive measures such as developing an incident response plan, regularly updating software and systems, conducting security audits, and leveraging password protection technologies, you can enhance your small business data breach preparedness. Effective communication with customers in the event of a breach is crucial to maintain trust and mitigate potential damage. By prioritizing data breach preparedness and utilizing the right technologies, you can safeguard customer and employee passwords and data, protect your reputation, and strengthen your overall cybersecurity defenses.
