Why Business Finance Security Is More Important Now Than Ever

Many small businesses make the unfortunate assumption that their finances are too small for cybercriminals to bother with. Between 2019 and now, however, there has been a steep rise in the number of cyber hacks that have specifically targeted smaller businesses. 

Here are a few statistics that you need to know as a small business:

• The average cost of a data breach for an SME company is approximately $2.98 million. This statistic is for companies that have under 500 staff. 
  
• Only 47% of SMBs manage to locate and rectify a breach within days, usually because they have no endpoint security. 
  
• A Verizon report showed that 93% of breaches that target small businesses are financially motivated. 
  
• Ransomware is the number one attack launched on small businesses. 

There is an extra follow-up layer after the initial attack with a cyberattack. The business will usually also require some downtime to locate the entry point and take steps to fix it. 

Improved and automated technology makes it easier than ever for cybercriminals to hack complex systems. And even easier to access information that is not protected at all. 

Why Are Small Businesses Under Attack?

Small businesses are one of the biggest drivers in the economy; they represent over 90% of the business population. 

The WTO notes that between 60-70% of employment and 55% of the GDP in developed economies comes from SMEs. So when it comes to small businesses doing their bit for the economy, they more than have it covered. 

While they are the main drivers in terms of business, they are also the main set of businesses that feel the effects of cyberattacks. In the US alone, there are an estimated 32.5 million small businesses.

One of the main issues facing small and medium businesses is the lack of finance and resources that can help fortify their financials against would-be cybercriminals. Although the gap is closing thanks to software that includes fraud prevention, there is still some way to go. 

What Steps Can Small Businesses Take to Prevent Cybersecurity Attacks?

The best time for you to employ the proper measures in your company is right now. Even a company with a single employee should have suitable measures to successfully prevent attacks and minimize the impact it causes.

Since we know that 93% of attacks are financially motivated, here are some tips on how you can secure your small business’s financial information.

Knowledge

One of the most important things that you can do to prevent attacks and breaches is to be aware of the types of attacks. Ransomware is the most common for small businesses, but there are more. 

Malware

Malware will be placed in your systems through a trojan horse or worm. Usually, these will be downloads that a member of the team or yourself access; the code which holds the malware will be launched into the system. Ransomware is a type of malware. 

Man-in-the-Middle

This type of attack is common for those who work remotely and do not use a VPN or use public wifi. The communications between parties are intercepted. This information could be logins, account details, and other records. 

Phishing

An email or text that looks like it may be from a financial institute will arrive, and the link included will be a scam. Although they may look legitimate, you may notice the lousy spelling, no contact details, incorrect data, or other details you wouldn’t usually need to input. 

Plan

Creating a cybersecurity plan is one of the most important things you can do – alongside understanding the different types of attacks—continuous training for yourself and employees – even remote or outsourced employees. Have a set of policies and procedures in place to help you maintain a high level of awareness and security. 

Software

You may choose to work with a cybersecurity company to implement and monitor your activity. Alternatively, at a minimum, you will need to have antivirus software and use a  firewall. These are digital shields that can help prevent attacks. 

Payment Processing

Only accept payments from financial establishments with two-factor authentication, extra checks, and a good track record for their cyber protection. Your payment point is a prime target for cybercriminals. 

Cyber attacks on small businesses are on the rise, and it is more important than ever to be aware of the implications you face without the proper protection and security in place.