Every day there is a war raging on behind your computer screen. Online security risks are ramping up, and cybercriminals are finding increasingly sophisticated ways to get into your business’ network or steal your personal data. And cyber security professionals are equally finding ways to stop their attacks.
Cyber security threats are malicious attempts to illegally access company data, disrupt digital operations or corrupt intellectual property. They can come from many sources, including hackers, terrorist groups and corporate spies.
Nearly 94,000 cybercrime incidents were reported in Australia within an annual period to June 2023 – an increase of 23% from the year before, according to the Australian Cyber Security Centre (ACSC) Threat Report. This equates to one report every 6 minutes.
Needless to say, this is highly concerning if you’re a small business owner, and you are probably scouring the Internet trying to understand what you are up against.
We explore the top cyber security threats facing small business owners and explain some ways you can protect your business against them.
1. Email compromise
Emails are the communication lifeline for most businesses. But they are also a golden gateway for cybercriminals. Email compromise strikes when cyber attackers target these business communications.
This issue arises when unauthorised parties gain access to business email accounts. This can lead to sensitive information being leaked, financial fraud, or even ransom demands.
Some of the ways small businesses can protect against email compromise includes the use of strong, unique passwords, multi-factor authentication, and educating staff on recognising phishing attempts.
2. Fraud via business email
Business email frauds are a growing threat that can severely affect the bottom line and credibility of small businesses. By impersonating company officials or trusted partners in email conversations, these attackers manipulate employees into transferring funds or sensitive information to fraudulent accounts.
A proactive approach, including educating your team about these tactics and establishing strict verification protocols, can safeguard your business from such threats.
3. Malware
Malware is a sinister cyber threat that sneaks into small businesses’ operation systems, often through seemingly innocuous downloads or email attachments. Once inside, malware can wreak havoc by:
- Blocking access to critical networks
- Installing more harmful software
- covertly accessing intellectual property and sending that company data to the cybercriminal
- causing systems to crash by destroying individual components
Protecting your small business against malware calls for cyber security policies like installing antivirus software, regular software updates, and employee training on safe online practices
4. Ransomware
While ransomware is a form of malware, it stands out due to its unique threat against small businesses.
Ransomware is used as a form of extortion. It works by encrypting vital business files and data, holding them hostage until a ransom is paid. This can grind small business operations to a halt, costing not just the ransom amount but also significant losses in productivity and potential reputational damage.
Training staff to recognise and avoid suspicious downloads and maintaining up-to-date security software are some of the measures small businesses can take to prevent such cyber attacks.
5. Cyber exploit attacks
Cyber exploit attacks zero in on the weak links in small businesses’ digital armour, such as outdated systems or unpatched software. This open doors for cyber attackers to infiltrate the small business’s network.
Once inside, attackers can steal sensitive company data, shut down operations or even take control of business systems.
6. DDoS attack
Distributed denial-of-service (DDoS) attacks work like a digital traffic jam, clogging small business’s online pathways and rendering critical services unreachable. By flooding your systems with an avalanche of requests, these attacks can paralyse your operations and incur serious financial losses due to the downtime.
Defending against DDOS attacks calls for a multi-layered security approach, including firewall protections, regular network monitoring, and working alongside DDOS protection experts.
7. Social engineering attacks
Social engineering attacks manipulates the human tendency to trust in order to breach business defences from within. It employs psychological manipulation to get users to make security slip-ups or accidentally give away sensitive information.
Multiple steps are usually taken to perpetrate social engineering attacks. The cybercriminal investigates the victim to collect the necessary background information, such as possible entry points and security weaknesses. The attacker then moves to win the victim’s trust, sending engineered content that is designed to get the victim to give access to information.
Phishing attacks, which are usually done through email, are a common type of social engineering cybercrime incidents.
In phishing attacks, the targets are contacted by someone pretending to be from an official company or organisation to lure potential victims into providing sensitive information, banking and credit card details, and passwords.
To counteract this, small businesses can consider establishing clear protocols for verifying identities and requests. Promote an environment where questioning and double-checking is encouraged, and invest in ongoing education on the latest social engineering tactics.
8. SQL Injection
Structured Query Language Injection (SQL) is a cyber-attack where attackers exploit vulnerabilities in small businesses’ database systems. They insert malicious code into small business applications that uses SQL, manipulating them to access, delete, or steal confidential information.
Small businesses can protect themselves against such attacks through measures like strict input validation, updated software defences, and regular security audits to identify and patch potential vulnerabilities in their systems.
9. Insider Threats
Small businesses might face risks not just from external cyber attackers but from within their organisation too.
Insider threats may come from within your own ranks, through employees or associates who misuse their access to harm the business. This might be through intentional acts of sabotage or accidental breaches due to negligence.
Establishing strict access controls and fostering a culture of security awareness among your employees are some of the ways small businesses can mitigate those risks.
10. Brute force attacks
Brute force attacks use trial and error to hack into devices through encryption keys and password protectors. Hackers try to guess the correct combination to small businesses’ private accounts by using ‘brute force’.
In other words, they try a number of different passwords manually until they get the right combination.
Although this is an old method of attack, it’s still very popular among hackers. It can take between a few seconds and many years to crack a password depending on its complexity and length.
Having strong passwords and adopting multifactor authentication can be effective deterrents against these relentless intrusion attempts.
How businesses can protect themselves
While there are many cyber threats to look out for, there are also many things small business owners can do to protect their data and networks.
1. Keep your software up-to-date
One way to keep on top of the latest protections is to program your operating system to automatically update security software. Updates can contain security updates for recent attacks and viruses. Many updates allow small businesses to schedule updates after hours or at a more convenient time. It’s important not to ignore updates as they can fix serious security issues
2. Install security software
Small businesses can prevent malware from accessing valuable company data by using cyber security software, such as anti-virus, antispyware, and anti-spam software. Consider installing security software across all devices, as malware can infect computers, laptops, and mobile devices.
3. Install a firewall
A firewall is a software or hardware that connects your computer to the Internet. It is the gateway for all outgoing and incoming traffic. A firewall can help protect internal networks of small businesses.
However, it’s important to maintain and update your firewalls regularly. Make sure to put a firewall on all portable devices.
4. Turn on spam filters
Spam filters can be used to reduce the number of spam and phishing emails that your company receives. Spam and phishing emails can infect computers and steal the private information of small businesses. Spam filters can help to reduce the chances of employees accidentally opening spam or phishing emails.
5. Consider cyber insurance
While it won’t prevent an attack, Cyber Liability insurance is an important component of any good cyber security business plan.
Cyber Liability insurance protects small businesses against both the legal costs and expenses related to cybercrime incidents. Cyber Liability cover generally includes expenses and restoration costs relating to the following:
- Data breaches including theft or loss of client information
- Network security breaches
- Business interruption costs
- Forensic investigation into the cause or scope of a breach
- Data recovery costs
- Cyber extortion
- Crisis management costs (to protect or mitigate damage to your businesses reputation resulting from a cyber event)
- Loss and legal costs, including fines and penalties resulting from a third party claim for data or network security breach against your company
Conclusion
A cybersecurity attack can cause serious damage to small business reputation and finances no matter if you are a sole trader or listed on the ASX200.
From ransomware and extortion to insider threats, there is plenty of risk in the cyber landscape that can derail your small business.
Implementing strong cyber security policies can protect your business in the long run. Especially one that includes comprehensive Cyber Liability insurance. It will allow you to mitigate cyber security risks in real time so your business can live to fight another day.
With BizCover, securing Cyber Liability insurance is straightforward and drama-free. Compare multiple quotes in minutes and secure the right cover online without the hassle of paperwork.
Don’t wait for a cyber incident to disrupt your business. Act now and make sure you’re covered with BizCover.
This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.
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ABN 68 127 707 975; AFSL 501769
