The Importance of Cybersecurity for SMEs

What makes SMEs targets and what are the risks from hackers?

We hear about large companies' data loss or a breach every few months. This can create an illusion of data safety for small and medium businesses. You are safe from cyber attacks or data breaches if you don't have the amount of data as the company with more staff or customers, right? But let's have a look at the latest statistics. According to the Verizon Data Breach Investigations Report, as many as 43% of all breaches occurred in small businesses. A suitable risk assessment would highlight any potential weaknesses.

So, an equally high number of small businesses are at risk of attacks. One of the reasons hackers target SMBs is a lack of cybersecurity awareness. In the short-term strategy, a tight security budget can save you some money, but in the long-term plan, not investing in data or cybersecurity is a risk and could lead to significant financial losses.

You can get all the needed information about how to start your cybersecurity awareness from this article. A detailed assessment of your GDPR or Security needs will be made evident through the Project Discovery Phase. If you have any questions, ask Go Wombat, and we will help you to improve and maintain your cybersecurity and protect your data.

What is the importance of cyber security?

Nowadays, the digital world, with all its possibilities become an offstage part of critical infrastructure. The worldwide network connects not only online shops and streaming services but also represents industries like Healthcare, Government, Oil & Gas, and Manufacturing online. Data breaks in this type of business can affect the work and life of thousands of people.

Moreover, we witnessed government digitalisation during the last decade. It made us more dependent on high-level both physical and cyber security. For example, the U.S. government faced costs of over 13.7 billion U.S. dollars as a result of hacker attacks.

What makes SMEs a hackers' target?

Valuable Data

Depending on your business' niche or industry, you may have unique and high-value data. For example, clients' bases, research, bank account credentials, or anything else you collect during the working process might be a good and reasonable target for hackers.

The most common way to benefit from stolen data is by selling it on the Dark Web. However, it's not only possible but also specific usage of personal data.

 You may have unique and high-value data depending on your business' niche or industry, making you a possible target.

Hardware

Sometimes, hackers have nothing to do with stealing companies' sensitive data. Another popular reason to hack a company is to abuse its hardware. In that case, the computers become a part of hundreds of other broken devices and are used for DDoS attacks creating an unrealistically big flow of web traffic.

Although big companies are mostly well protected from data hijacking, the smaller ones can still give access to them. This is because small and big businesses have a connection via links they both use to share data.

Money

It's the last but not least reason to breach into SMEs' systems. Unfortunately, there are many ways to drain money from business to the last drop. Sues, data selling, blackmailing... The list goes on.

Why Cybersecurity Presents Unique Risks for SMEs?

Tight Budget

It's not a secret that smaller companies have a tighter budget for running the business. But, for some reason, cybersecurity might be considered a non-priority side of spending.

At the same time, more prominent companies have the budget to hire cybersecurity experts and "ethical" hackers to find vulnerabilities. However, small and big businesses share similar cyber security risks.

Complexity Challenges

Many smaller teams lack the experience and know-how to do this effectively. Additionally, supply chains are growing longer and more complex. Hackers have adjusted their tactics and often attack the weak point in the chain (often an SME vendor) to help penetrate a larger enterprise with stronger security.

Expertise Challenges

Small and medium-sized businesses can rarely afford a large in-house team of experts to run cybersecurity processes and create robust security systems. Unfortunately, this gap in security is widely known for data thefts. They use small business systems as weak chain points to gain access to larger companies.

Types of Threats for Small Businesses

Malware Attacks

Malware (or "malicious software") is the most popular way to attach computer systems. Malicious software is a file or code targeted victim usually receives from the network via unprotected channels.

Although malware gives numerous options to damage the system, there are three main malevolent methods to find the victim: trojan horse malware, viruses, and worm malware. 

The main risks that stay behind the malware cyber attacks are giving hackers unsanctioned remote control and access to the infected device, losing unprotected sensitive data, receiving spam, and detecting the local network of the infected user.

There are five main types of threat for SME hackers. Discover if you are at risk from any of them.

Phishing

This threat type is possibly one of the most dangerous. Unlike malware, phishing is a social engineering attack, so catching this type of threat is mainly on the users. Phishing programs make people click on it and share their sensitive data.

How? By masking like a familiar program or platform where we receive emails or texts often. The data that can be stolen this way is passwords, credit card information, etc.

Ransomware

Ransomware is dangerous for both SMEs and single users. It's a threat program that blocks users' access to their data or devices in order to get money.

A good example of ransomware is the Cryptolocker. It is one of the first examples of how dangerous sophisticated ransomware could be. Let's see how it works. First, this program lock users' access to their own devices. Then, Cryptolocker used a 2,048-bit RSA key pair and encrypted systems with all connected drives and synced cloud services.

Weak Password

Have you seen stickers with passwords on coworkers' PCs? If so, you witnessed the dangerous data breaches possibility. Moreover, if this password is short or too easy to remember, the breaching options are even wider.

A weak password is short, standard, or even a system default symbols combination. Usually, it's birthdays, important dates, common words or numbers.

Having a weak password policy, or even no policy at all, could lead to major issues in the future. It is best to have a strong password policy for all employees.

Insider Threads

From the cybersecurity point of view, a zero-trust strategy is a good option to protect your data and devices. Sometimes people gain unauthorised access to sensitive data.

As long as it might be any people related to your company, a cyber security system should be set for everybody equally.

Best Practices to Reduce Cyber Attacks Risk

Security risk Assessments Process

A risk assessment helps business owners see their security system from the hackers' point of view. Thus, checking possible ways to break the company's security is an effective method of setting a holistic security plan with minimum defects.

It is, of course, recommended to follow best practices when tending to cybersecurity issues. A plan and an assessment are the least you can do.

Have a Data Security Plan

The data security plan is one of the best practices for every company. It helps the team understand the steps they must take to prevent and recognise data breaches.

So, the data security plan avoids financial and reputational losses and benefits small and medium-sized businesses.

Train your Employees to Prevent Insider Threats

Employees and people with access to corporate data must understand what to look out for or how to keep sensitive data safe.

The good decision is to take responsibility for their cybersecurity education and implement a training system.

Unfortunately, this is the aspect of inner security that business owners should keep an eye on. According to TechJury, insider incidents have increased by 44% from 2021-2022.

Implement a Strong Passwords Policy

We already mentioned the danger that weak and unencrypted passwords bring to the organisation. And now it's time to talk more about how to avoid this mistake.

First, set a strict rules codex for employees. Secondly, always use password managers and create strong passwords according to cybersecurity requirements. In other cases, brute-force attacks or other password-breaking practices would easily crack your password.

Install Firewalls

It's a network security monitoring system that controls incoming and outgoing network traffic based on predetermined security rules.

Antivirus software is meant to protect your file system from unwanted programs, and a firewall helps keep intruders or external threats from accessing your system.

A firewall typically creates a barrier between a trusted and untrusted network, such as the Internet. However, this software has cons in establishing cybersecurity for small businesses too.

Firewalls are your immediate protection from the outside world. Using them as part of your cybersecurity plan will go a long way in protecting your systems.

Contact GoWombat

This simple yet effective step would bring you to an expert team to help with your special security issues.

Conclusion

It's essential to have an understanding of your business's vulnerability. For example, we all lock our office doors to stay safe and keep our documents sealed in the safe. So why don't you cyber-secure your business? Basically, every unprotected way to access your data or devices is an open door for perpetrators.

In the long-term strategy, increasing cybersecurity saves money, avoids lawsuits, and keeps your sensitive data safe. However, the company's steps to introduce cybersecurity standards vary from one organisation to another.

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