Small Businesses Are Especially Susceptible to Cybercrime

Avoid These 6 Mistakes

Small-business owners are always busy, which makes them preferred targets of cybercriminals. People looking to steal data and money know larger organizations have the time, resources and IT teams to prevent common attack strategies.

Anyone operating their own company can better protect it by avoiding these common mistakes that lead to costly security breaches.

Different Types of Cybercrime

People better protect themselves from various types of cybercrime after learning how criminals exploit their targets. These are the most common types of attacks people experience when cybercriminals launch a digital assault.

1. Malware

Malware is software that disrupts a computer or network with malicious software embedded in email attachments or links. Research shows that 51% of business security breaches involve malware taking the forms of threats like viruses, trojans, worms and ransomware.

2. Phishing

Phishing occurs when a cybercriminal creates an email or pop-up ad that closely resembles a business the target already knows. The information, branding or words look familiar enough that the target doesn’t question why the written text asks them to update their account information or urgently send money.

3. Denial-of-Service (DoS)

Denial-of-service (DoS) attacks prevent people from accessing their network, devices or accounts because a cybercriminal floods the host with traffic, preventing the websites from loading. While the target attempts to log in or stop the attack, the cybercriminal gains more time to hack the accounts or hold sites for ransom.

Mistakes That Lead to Cybercrime Attacks

Although there are many types of cyberattacks people can experience, there are simple ways to prevent them. These are a few strategies any business owner can use to prevent themselves from losing time, money and sensitive data to online criminals. It’s vital to avoid the following mistakes.

1. Not Using Two-Factor Authentication

Many websites and programs offer two-factor authentication. It may take an extra step to activate, but it’s worth it. The first stage usually involves entering the correct password. Then, another screen requests a secret word chosen by the account owner or a code texted to the authorized user’s phone.

When a cybercriminal attempts to log into an account with two-factor authentication, the authorized user may get an email asking if they requested a password change. They could also get a surprise text with a code for a log-in attempt they’re not making.

Business owners can avoid this issue by checking their virtual accounts and networks for two-factor authentication in the various settings menus. Contacting customer service for the sites or software programs may make it easier to turn on this preventive measure.

2. Forgetting Employee Training

Company leaders aren’t the only individuals at risk of cyberattacks. Employees can also be targets. It’s one reason why data breaches caused by cybercriminals cost U.S. businesses over $9.48 million in 2023. Malicious individuals know anyone can fall for phishing emails, so training employees to spot their attempts is vital.

Recurring training should remind employees to spot suspicious emails and never click on links or attachments unless they’re confident in the sender. They should also change their passwords every two months with secure password generators to make them harder for hackers to guess.

Above all, employees should feel comfortable asking for a second opinion. If they’re unsure about an email or link, they need to know they can talk with their manager, the company owner or someone on the business’ IT team for clarification. Fostering a welcoming environment where questions are welcome is crucial to protecting against cybercrime.

3. Never Updating Security Software

Digital security programs include malware protection, firewalls and antivirus software. They’re useful in preventing cyberattacks, but not without system updates. Companies send security updates every so often to patch holes found by cybercriminals or glitches caused by previous ones.

Ensuring each program has approval to send update notifications prevents this issue from affecting businesses of any size. People can also protect themselves by setting calendar reminders to manually check for software updates in case they miss notifications.

4. Rarely Backing up Essential Data

Backing up data is like putting sensitive information in a virtual safe room that shelters it from outside interference in any form. The backup location won’t be accessible to cybercriminals because it could be an encrypted cloud platform or a physical external hard drive in a storage room.

Although some programs automatically back up data when users select the secondary location, people can also manually back things up. Business owners should decide where they trust the security of their information before ensuring backups are happening according to the schedule they set.

5. Skipping Data Encryption Options

Depending on the business, severs, computers and individual devices may have sensitive data. Anyone managing health-related information can further protect themselves and their clients with encryption services.

Computer experts encrypt folders, files and even entire disks. Encryption shields the data while requiring specific types of complicated keys to get to the information. It’s a multilayered security approach compared to a single password featuring letters and numbers. Business owners interested in encryption options can look into downloadable tools with third-party programs or hire a local provider to set up their keys.

6. Not Getting Cyber Insurance Coverage

Some industries are more at risk of cyberattacks than others, but insurance coverage can help any small business in the event of an attack. Health care facilities lost nearly $11 million between 2022 and 2023 due to data breaches, while financial institutions lost only $5.9 million. Although one is more at risk than the other because each handles different types of sensitive data, companies can get cyber insurance to minimize their financial loss.

Cyber insurance reimburses the financial loss up to a certain percentage if an attack occurs. Business owners can pay for more extensive coverage if they’re more at risk due to their services, like managing health information or handling financial accounts. It’s a helpful backup resource if cybercriminals get through other preventive measures like encryption or security software.

Prevent Future Cyberattacks

Small-business owners don’t need a cybersecurity degree to safeguard their companies against cyberattacks. Learning about and avoiding these common mistakes eliminates many ways malicious hackers take advantage of any sized company. As long as everyone in the business knows the common types of cybercrime and ways to prevent them, the operation will remain safe in the modern digital world.