Biggest Small Business Threat: Cyber Data Breach

Small businesses are tough. They have to be! It's not easy to compete with the big dogs. But through hard work and dedication, many small businesses carve out a place in the market that allows them not just to survive, but to excel.

Here at CyberPolicy, we understand the pressures SMBs face every day, from hiring the right talent to ensuring a quality experience for your clients and customers. The last thing you want to worry about it is cybercrime. But without the right cyber security policy, your company could suffer the worst effects of a digital scam.

It's sad to say, but 60 percent of small companies go belly up in the six months following a cyberattack. According to the National Cyber Security Alliance, one in five small businesses fall victim to cybercrime each year! Black hat hackers have a bullseye on small businesses because they know SMBs can't afford the same defense systems as enterprise giants, making it simple to break into your network.

Once inside, cyber crooks will install malware on your devices, send spam from your emails and pilfer valuable information from your servers. Leaked data can include customers' personal information, compromising emails, employees' personal data, proprietary product information and so much more. The average cost per lost or stolen record in the United States was $217.

While small businesses are disproportionately targeted by hackers, large businesses also fall victim to data breach. Examples include Yahoo, Target, Sony, Dropbox, Ashley Madison and the Democratic National Committee; each resulting in a PR nightmare that harmed business relations and public perception.

Don't let this happen to your organization!

The Best Defense
Here are a few tips to keep your data safe and secure:

  • Educate your staff. Almost 90 percent of all cyberattacks begin with human error. This could be in the form of a careless mouse click, weak password or a failure to follow protocol. You can reduce your chances of digital incursion by educating your employees about cyber threats.
  • Only send and store data using an encrypted platform. At its most basic level, encryption ensures that only the proper sender and receiver can access transferred or stored data. So, whether you are storing important files in the cloud or communicating with your coworkers over a group messenger, make sure that everything is encrypted for your privacy.
  • Silos are your friends. If you want to keep your data confidential, you'll want to grant access only to the people who need it. Does your marketing team really need access to personnel files? Does your financial team need access to IT tools? It's important to answer these questions before an incident happens.
  • Censor crucial data. There's no reason to make things easy for hackers. Protect classified personal information like passwords or social security numbers using hashes.
  • Invest in cybersecurity policy insurance. In the event of a hacker attack or data breach, CyberPolicy can insulate your small business against the damaging financial effects including class-action lawsuits, cyber extortion, data breach, business downtime and more.

Interested in learning more? Visit CyberPolicy or check out business liability insurance from our parent company CoverHound today!

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