In today’s digital world, the threats facing small businesses are bigger than ever before — and they’re not just limited to physical theft. Cybercriminals are constantly looking for new ways to infiltrate businesses. And unfortunately, small retailers are often their easiest targets.
It’s easy to think, “What would any criminal want with my business?” But hackers know that small businesses typically have fewer resources dedicated to cybersecurity, making them prime targets for attacks.
Cybersecurity is more than a trend, it’s essential for the long-term success of your business. With everything from customer data to payment systems at risk, even a single cyber incident can have devastating consequences for a small business. That’s why it’s more important than ever for business owners to take action, even with limited budgets and time.
Below, we’ll dive into the current cyber risks facing small businesses and share straightforward strategies you can implement to help protect yourself, your business and your customers. By understanding the threats and learning how to better fortify your digital defenses, you can help safeguard your future and keep your focus where it belongs — on growing your business.
Cybersecurity Landscape for Small Businesses
Recent attacks such as data breaches, phishing scams and ransomware have surged, with hackers taking advantage of human error and outdated systems. In fact, there were more than 343,338,964 victims of cybercrime in 2023 alone.
The challenge for many small businesses lies in their limited resources — small teams and tight budgets mean there’s often little capacity to invest in larger cybersecurity measures.
Despite these challenges, there are steps small business owners can take to protect themselves. When you understand common risks and identify weak spots, you can start building stronger digital defenses.
Cybersecurity Risks for Small Businesses
Small businesses are increasingly vulnerable to a range of cyber threats that can have serious consequences. Here are a few to look out for:
- Data Breaches: Hackers often target small businesses to steal sensitive customer information such as credit card details and personal data. A data breach can lead to a loss of customer trust and a damaged reputation, making recovery a major challenge for any small business.
- Ransomware: Ransomware attacks lock your systems until a ransom is paid, bringing operations to a halt. For small businesses, this can mean a tough choice between paying the ransom or potentially losing critical data, both of which can be a huge financial problem.
- Phishing Attacks: Phishing emails trick employees into clicking on malicious links or sharing sensitive information. Just one successful attempt can give hackers access to your systems, jeopardizing both business and customer data.
Best Practices Against Cyber Threats
Protecting your small business against cyber threats might seem daunting, but there are several straightforward steps you can take to strengthen your defenses. Here are some best practices to get you started:
- Employee Training: Your employees are your first line of defense against cyberattacks. Educating your team on cybersecurity basics is so important: Teach them to recognize phishing attempts, avoid clicking on suspicious links and safely handle customer data. Even a quick training session can make a big difference in reducing your risk of falling victim to scams.
- Data Encryption and Secure Payment Systems: Encrypting customer data is like putting it in a locked box — if hackers manage to access it, the information is still protected. Make sure your payment systems are fully encrypted and PCI Data Security Standard (PCI-DSS) compliant. You can also help secure your point-of-sale system by selecting a solution that can run on an iPad instead of a PC, such as Stripe or Square, to limit the risk of malware installations. This way, you can protect sensitive customer information like credit card details, reducing the chance of a data breach.
- Regular Software Updates and Patch Management: Cybercriminals often exploit vulnerabilities in outdated software. By regularly updating your systems and applying patches, you can help close these gaps and reduce your risk of an attack. Set up automatic updates where possible to ensure your business is better protected against the latest threats.
- Multi-Factor Authentication (MFA): Adding multi-factor authentication (MFA) to your accounts is a simple yet effective way to boost security. With MFA, even if a hacker manages to steal a password, they still need another form of verification (like a code sent to a phone) to gain access, making it much harder for them to break in.
- Backup and Recovery Plans: Data loss can be devastating for a small business, whether it’s due to a cyberattack or a technical glitch. Regularly backing up your data helps ensure you can quickly recover critical information if something goes wrong.
Another option is to pick solutions that are cloud-based. A cloud-based application is like using an app on your computer or phone, but instead of storing everything on your own device, it stores and processes data on the internet (“the cloud”). With cloud apps, data backups work by automatically saving copies of your data to secure servers on the internet instead of just on your device.
Whether you opt for traditional software or a cloud-based solution, it is best practice to have a solid recovery plan in place so you can get back on your feet fast in case of an incident.
- Working With a Security Partner: Cybersecurity can be complex, especially for small businesses without any IT staff. Partnering with a cybersecurity provider or managed security service can be a smart move. These experts can help monitor your systems, identify vulnerabilities, and provide solutions tailored to your needs, giving you peace of mind without the need for in-house expertise.
Remember: a proactive approach to cybersecurity is one of the best investments you can make as a small business owner.
Better Protect Your Small Business
Cybersecurity might not always be top of mind for small business owners, but it’s a critical part of better protecting your business’s future. From data breaches to phishing attacks, the risks are real, and the consequences can be severe. But with the right strategies in place, you can focus on what you do best: growing your business and serving your customers.
Jennifer Dunn is the assistant vice president and director of operations and innovation at Woligo. Dunn has over 25 years of experience working in IT-related fields. Woligo (Work. Life. Go.) is an insurtech startup designed to market self-service capabilities for insurance, benefits, banking and retirement products to small business owners.