Cybersecurity for small business: how to stay safe against digital threats

Impact of cyberattacks on small businesses

Cyberattacks can wreak havoc on even the biggest enterprises, let alone small companies. However, while a large, financially secure organization can get back on its feet faster, a small business runs into far more trouble. The weight of the financial, reputational, and legal repercussions can create a domino effect of adverse outcomes, each more daunting than the last.

First, there are the financial consequences. Calamities create ripples ranging from the immediate loss of funds to long-term trade disruptions and loss of clientele. Reputational damage goes hand in hand with financial difficulties and can be tough to recover from. It’s not just clients who might turn away from the business, either. The consequences of a breach can also put off suppliers, partners, and investors.

Small businesses may also struggle more with the legal ramifications. Unlike enterprises, they might not have the resources to handle data protection appropriately in the first place. That leads to fines, which in turn lead to greater financial repercussions, and so the cycle continues.

A data breach is a lesson for any business—and an expensive one at that. Understanding the risks and implementing robust cybersecurity measures before a cyberattack occurs is the first step to building strong defenses. The multifaceted impact of cyberattacks highlights the critical need for small businesses to always be proactive and informed.

The biggest threats to Small businesses

In the eyes of cybercriminals, small businesses make for lucrative targets. It can be easier to breach 100 small businesses with more rudimentary defenses than 10 enterprises with state-of-the-art security. Over the years, patterns have formed for attack types that prove to be more effective. Social engineering tactics that rely on psychological manipulation can cause a great deal of damage, sometimes without employees even realizing they were the secret key to success. However, the use of malware to maximize damage to internal systems is also popular. Here are some of the most common threats to watch out for while handling cybersecurity for a small business.

Phishing

According to Verizon’s 2024 Data Breach Investigations Report (DBIR), 68% of company data breaches involved non-malicious human elements, like social engineering. The FBI reported that, in 2023, phishing accounted for 34% of complaints, making it the most reported type of cybercrime.

A phishing attack is a form of social engineering in which the attacker mimics a legitimate contact to trick an unsuspecting user into clicking on a malicious link, luring out their sensitive data, or infecting their device with malware. Over the years, phishing scams have become increasingly sophisticated, making it harder to identify them.

There are a few things you can do to secure your business from a phishing attack. First, you need to get the entire staff on the same page. Educate them about the intricacies of phishing and provide avenues to report any suspicious events. You should also enable anti-phishing filters within your company's email and consider installing additional security software optimized to detect fraudulent emails.

Ransomware

Ransomware hits SMBs at an incredible rate. Datto’s Global State of the Channel Ransomware Report notes that 85% of managed service providers (MSPs) reported ransomware attacks targeting their clients. In the first quarter of 2024, companies with up to 1,000 employees accounted for nearly 75% of all ransomware attacks. In most cases, phishing emails are behind ransomware threats.

During a ransomware attack, data on the affected computer is almost instantly encrypted, making it unusable in any context unless it is decrypted. Once the files are encrypted, the attackers demand a ransom—hence the name—in return for the decryption procedure.

One of the best ways to defend your company’s data from a ransomware attack is by making regular software updates and data backups. Software updates, including OSs, ensure that no security gaps can be exploited by bad actors. At the same time, data backups allow you to be safe even if any of your data is compromised. Another step is deploying company-wide antimalware and antivirus software that can detect any malware before it does any harm to your company’s network.

Viruses

Viruses are perhaps some of the most common cybersecurity threats affecting businesses and individuals alike. They’re pieces of software that, when installed upon a device and activated, start executing various malicious commands.

Viruses can be transmitted to a device via hardware and software. Connecting a suspicious USB flash drive containing a virus to a device is a common strategy for spreading malware. Phishing is also frequently combined with viruses—if a user downloads a suspicious attachment or opens a scam website, their device can be infected.

The damage that a virus causes depends on its programmed purpose. Some viruses might slow down a device and use its resources to mine cryptocurrencies in a process known as cryptojacking. Others lurk in the system, granting access to all inner files without the victim noticing. Keyloggers are a type of virus that can read the user’s keyboard input, allowing them to steal credentials and similar sensitive information.

Businesses are often targeted using viruses that can take over the whole internal network of computers, leading to ransom demands. Trojans, in particular, are dangerous, as they can destroy the entire system from within.

For small businesses, viruses can cause irreparable damage, starting from compromised and lost data to hardware damage and replacement demands. As viruses become increasingly sophisticated, they require more expensive measures than regular antivirus software. They might also exploit out-of-date software with security vulnerabilities.

Preventing an organization’s devices from acquiring viruses calls for similar measures and phishing or ransomware protection. Companies must ensure all devices are up-to-date to avoid zero-day exploits or similar security gaps. All devices should be regularly monitored by antivirus software, and IT teams should be informed if suspicious programs or files appear on the device or if a user has opened a phishing email or website. Companies can also use anti-phishing and anti-malware plug-ins for their email services to prevent employees from accidentally downloading viruses. Cybersecurity awareness training for small business employees is key, as it helps ensure that everyone is on the same page about potential threats and defenses.

Weak passwords

As far as market research is concerned, weak passwords are the biggest threat to cybersecurity for small businesses. Here’s just a handful of studies and reports that reveal password vulnerabilities in practice:

• Verizon’s 2024 Data Breach Investigations Report (DBIR) notes that 77% of hacking-related breaches are linked to stolen credentials.

• NordPass’ study of the 200 most common passwords in 2024 revealed that a whopping 79% of the world’s most popular passwords could be cracked in under a second.

• A study into the password habits of Fortune 500 companies highlighted that even the biggest players out there struggle with password security, with 20% of the passwords being the exact name of the company or some variation.

Ensuring password security in a business environment is not that complicated. A password management solution should be on the company’s must-have list, no matter its size or market. A password manager such as NordPass allows businesses not only to securely store valuable login information but also share it within the confines of the organization. Additionally, it increases employee productivity and helps you meet compliance requirements.

Cloud computing

Cloud computing products are a huge part of today’s business. Nearly all SMBs use cloud-based applications in one way or another, whether for productivity or security benefits. In many instances, cloud computing solutions are highly scalable. However, as helpful as cloud computing solutions are for business IT security, organizations must understand that such products have their risks.

When it comes to cloud-based applications, it is essential to evaluate their security posture. For instance, zero-knowledge architecture is one thing to look for in applications, as it ensures the privacy and security of any data that the application handles. To reap all of the cloud’s benefits, such as scalability, flexibility, and reduced IT costs, SMBs must develop a cloud security plan to clearly define security policies and procedures for using cloud-based applications.

Cybersecurity tips for small businesses

Establishing the right cybersecurity practices in an SMB does not have to be a costly affair. A large chunk of what makes small business IT security function like a well-oiled machine is down to employee awareness and correct credential management practices. Here are some cost-efficient cybersecurity solutions for small businesses to help you employ safe working and data-handling practices:

• Ensure employee education. As you can tell, password mismanagement is a massive problem for company data security. This misuse often stems from a lack of employee awareness. Provide your team with regular training on cybersecurity practices, digital threats, and how to keep themselves protected from bad actors.

• Perform routine security checks. Zero-day exploits are beloved by hackers as an easy way in to systems. The best way to protect your company devices from unwanted visitors is to lock the backdoors by keeping all systems and software up-to-date and running regular checks for vulnerabilities.

• Use cybersecurity software. Tools like antivirus or firewall software help protect company-owned devices from internal threats. For instance, if an employee finds a suspicious file on their desktop, they can use antivirus software to quarantine it and conduct regular device scans for potential hidden threats. A firewall helps monitor activity across the entire device network, allowing IT administrators to quickly notice suspicious activity and block it ahead of time.

• Add spam filters to the company email. Scammers who use social engineering are efficient at producing realistic emails that can trick even professionals. To avoid incidents of opening fishy attachments or logging in to a spoof portal, add a spam filter to your organization’s email inboxes that lets employees easily flag and report suspicious emails.

• Use a password manager. Contrary to popular belief, password managers aren’t just useful for generating complex, unique passwords. Business password managers like NordPass also offer centralized controls, such as setting up password policies, observing all organizational activity, or managing shared access between all employees.

• Enforce multi-factor authentication (MFA). In the 2020s, a password is no longer enough to protect your organization’s sensitive information. To improve their security measures, many companies enforce multi-factor authentication use for all work-related accounts. NordPass Authenticator even lets you store your MFA codes with your login credentials and autofill everything at once.

• Use a secure web hosting provider. Opt for a secure web hosting provider. Setting up a website helps boost the growth of a small business. Going for a cheaper hosting option can save costs, but it increases the risk of cyber threats. A website hosted via an unreliable service can be prone to malicious code injections, DDoS, or malware. A secure hosting service provider like Hostinger helps mitigate such threats and enhance the security of the website and the business behind it.

• Risk assessment. Conduct a risk assessment. Although we’ve covered the common small business threats, cybercriminals might adapt their strategies when targeting specific industries. Conducting routine risk assessments helps identify and understand potential risks and implement effective strategies to mitigate them. By evaluating your business processes, IT infrastructure, and data-handling practices, you can allocate resources more effectively and develop actionable policies, allowing you to maintain a resilient and sustainable business.

• Network Encryption & VPN Usage. Encrypt your network. Ensure that your company’s network connection is secure, especially if your team includes remote and hybrid employees. Communicate with your employees about the importance of using a strongly encrypted network connection with a VPN and avoiding public Wi-Fi. Provide access to a secure connection on all company devices with a network protection service like NordLayer and make sure sensitive data remains encrypted even if a device connects to a compromised network.

• Access Control. Control access to sensitive data. Prevent your team from becoming the weak link in your organization. Insider threats present a huge problem in data security, as employees may fall for a phishing scam or unwittingly (or deliberately) cause a data leak. Use access controls to limit exposure to sensitive company data on a need-to-know basis. Bank account information, internal login credentials, or contract details should only be available to those employees who actively use this data as part of their duties.