Technology, Data Breaches and Cybersecurity for Small Businesses

Authored by Julia Jiang, Greg Pierantoni, and Shaila Vester-Skinner

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Introduction

Small businesses are the backbone of local economies and employ nearly half of the United States labor force (Forbes). Advances in technology, including digital marketing, payment processing and E-commerce platforms, have allowed small businesses to reach more customers than ever. Today, technology is even more of a vital resource and a necessity for the success of businesses. However, relying on technology brings new risks including data breaches and cyberattacks. This article will provide insight on the challenges small businesses face using technology, cybersecurity, steps to prevent risk, and how business consultants can properly monitor their safeguards.

Data Breaches

Organizations today are mostly concerned with data breaches. Breaches are unauthorized access to sensitive, personal, or protected data. Breaches are extremely costly and are signs of weak network security. On average globally, a single breach costs $3.7 million. It is especially difficult for small businesses to “bounce back” from cyberattacks. Sixty percent of small businesses close within six months of major data breaches (Cybercrime Magazine). Since small businesses handle sensitive customer information, steps should be taken to ensure that there is no suspicious activity. With a variety of behavior based and technology-based solutions, it is more important than ever for small businesses to have cybersecurity plans in place to prevent and limit the damage of any data breaches.

Cybersecurity

Cybersecurity consists of any technology or practice that increases data security and mitigates cyberattacks and their impacts. Cybersecurity measures aim to protect individuals' systems, company systems, sensitive data, financial assets, and other computing devices. Cyberattacks hold the power to wipe out businesses and are costly for victims. There are seven types of cyber domains: cloud, network, endpoint, critical infrastructure, application, information, and mobile security. Although hackers are constantly finding new ways to inflict damage on businesses, there are concrete actions that can prevent a majority of cyberattacks.

Cybersecurity Myths:

1. Most major risks are known. This is false because technology is always expanding, which means new risks are always emerging.

2. Strong passwords are good enough protection. This is incorrect because “cybercriminals” have creative ways to steal passwords, including phishing and “credential stuffing.”

3. Cyberattack vectors are secure. False because vectors, just like technology, are always expanding and there are new paths (like cloud services).

Actionable Steps for Prevention

Data breaches occur regularly and are extremely costly. Therefore, it is necessary for small businesses to invest time and money to prevent data breaches to the greatest extent possible. Here are some suggestions to be considered:

Behavior-Driven Solutions

Awareness and education is key for preventing cyberattacks. Implementing strong authentication is one of the most effective ways to prevent data breaches. This can be done through stringent company protocols. Most importantly, only people who need sensitive information should have it. Other protocols may include requiring employees to set strong passwords, the use of biometric authentication (fingerprints or facial recognition), and regular changing of passwords. Wi-Fi networks are important to secure, which can be achieved through a wireless access point or router, which does not broadcast the network name. Another great feature of computers and technology systems are software updates, which increase data protection and are updated to address data security weaknesses. Companies should also delete unnecessary data and back up important ones regularly. Cloud data protection is ideal since it eliminates the need to disconnect the backup drive from the internet. If an attack occurs, businesses can restore all their files from backup.

Technology-Based Solutions

A variety of technologies and software programs offer cybersecurity at affordable prices. Virtual Private Networks (VPN) encrypt web addresses and are most useful for protecting data while connected to public Wifi networks. Antivirus software is affordable, and it protects against malware and spyware. Encryption software specifically decodes data so if it is stolen, it is nearly impossible for hackers to interpret. There are also tools to automate behavior-driven solutions such as password managers, which make it more efficient to change passwords, and backup software, which automates the backup process. Finally, companies should have a clear strategy to identify and handle network intrusions. For example, they could buy data breach insurance and hire security experts to help protect data and manage the aftermath of a breach incident.

Business Consultants for Cybersecurity

Knowledgeable business consultants can help simplify the complex world of cybersecurity and determine which measures are best for different types of small businesses. One area where consultants may provide assistance is through creation of custom protocols to enforce across a company. Another factor to consider when utilizing business consulting for cybersecurity is certifications of the consultant. One of the most sought-after and useful certifications in cybersecurity is the Certified Information Systems Security Professional (CISSP). These experts are knowledgeable and qualified to create strategies to decrease the risk of data breaches for small businesses.

Conclusion

When we think of America's prosperity, we should think of small businesses. They are one of the many attributes that make our country thrive. A majority of workers in today's society work for companies with less than 500 employees. As small businesses are one of the main drivers in our economy, they also become major targets for cyberattacks. To prevent these attacks it is important to be aware of phishing tactics, implement strong passwords, conduct regular security audits, and keep software updated. Building an awareness and prioritizing technological responsibility will help prevent attacks as well. Staying up to date on new threats and industry developments will help when making security decisions. In order for small businesses to succeed they will need to leverage technology and enhance operations. Business consultants need to ensure that customers are taking measures to safeguard confidential and sensitive information.    

Resources:

1. Adam Rowe, Apr 11, 2024, 13 Cybersecurity Measures That Every Small Business has to Implement, Tech.co, https://tech.co/vpn/cyber-security-measures

2. Cybercrime Magazine, Oct 16, 2019, 60 percent of small companies close within 6 months of being hacked, https://cybersecurityventures.com/60-percent-of-small-companies-close-within-6-months-of-being-hacked/

3. IBM, Oct 27, 2023, What is Cybersecurity?  https://www.ibm.com/topics/cybersecurity

4. Kelly Main, Jan 31, 2024, Small Business Statistics of 2024, Forbes. https://www.forbes.com/advisor/business/small-business-statistics/

5. Megan Gallagher, Jan, 2, 2024, What Is CISSP Certification? Qualifications, Benefits and Salary, Forbes, https://www.forbes.com/advisor/education/it-and-tech/what-is-cissp/

6. Mood Media, Nov 10, 2023, Importance of technology in small businesses. https://us.moodmedia.com/blog/industry-lens/importance-of-technology-small-businesses/#:~:text=Technology%20has%20made%20it%20possible%20for%20small,costs%2C%20and%20increase%20productivity%2C%20among%20other%20benefits

7. National Cybersecurity Alliance, Dec 22, 2023, 8 Biggest Small Business Cybersecurity Misconceptions, https://staysafeonline.org/resources/8-biggest-small-business-cybersecurity-misconceptions/

8. Steven Melendez, Jun 13, 2024, Small Business Data Breach: Mitigating the Damage, Business News Daily. https://www.businessnewsdaily.com/6156-small-business-data-breach-protection.html

9. U.S. Small Business Administration. July 2, 2024, Strengthen Your Cybersecurity. https://www.sba.gov/business-guide/manage-your-business/strengthen-your-cybersecurity#:~:text=Use%20antivirus%20software%20and%20keep,and%20improve%20security%20and%20operations.

10. U.S. Small Business Administration, October 29, 2021, Protect Your Small Business from Cybersecurity Attacks, https://www.sba.gov/blog/protect-your-small-business-cybersecurity-attacks