Essential Cyber Security Tips for Small Business Owners

When I started my first small business about 15 years ago, there were so many things to worry about — business licenses, insurance, banking information, branding, and the list goes on. But one of the things that wasn’t necessarily at the top of my mind (that should have been) was cybersecurity.

Back then, cyber attacks were the stuff of movies and sci-fi books, but today, they are an everyday occurrence. And it’s not just the large corporations that are at risk. In fact, recent statistics indicate that small businesses may be more at risk. Nearly 50% of businesses with fewer than 50 employees have no cybersecurity budget,¹ making them an easy target for cybercriminals. In 2021, nearly 44% of all ransomware attacks targeted businesses with 100 or fewer employees.²  

With frightening statistics like these, small business owners can no longer afford to ignore cybersecurity measures and hope for the best. Hackers frequently target SMBs because they know that businesses with small (or non-existent) IT teams are more vulnerable to these types of attacks. But here’s the good news: You can significantly lower your risk by following a few simple cyber security tips for small business.

Understanding the Cyber Threats to Small Businesses

The first step to protecting yourself and your business is to stay informed about the most common types of cyber threats. These threats constantly evolve as hackers learn new and creative ways to exploit unsuspecting users, so educating yourself needs to be an ongoing process, not a one-time event.

Here are some of the most common cyber threats in today’s environment and how they could impact your business:

Phishing

Phishing occurs when cybercriminals send fraudulent emails or messages that appear to be from trusted sources. An email may look like it’s been sent by Google or Facebook, but it’s actually a cleverly disguised attempt to trick you into clicking on malicious links or sharing your private information (like passwords).

Malware

Malware is a category of software programs designed to damage or access your systems and devices without permission. These attacks are typically initiated when someone downloads a file disguised as a legitimate document. Once the software program gains entry into your system, it can corrupt files, steal data, or disrupt operations, creating a costly mess for your business.

Ransomware

Ransomware locks you out of your own systems or encrypts your data until you pay a ransom to the attacker. This can be a dangerous cat-and-mouse game, as paying the attackers sometimes encourages them to change the rules and demand an even higher ransom. If the ransomware attack is severe enough, you can be locked out of your business in minutes.

Denial-of-Service (DoS) Attacks

A DoS attack overwhelms your website or system with traffic, causing it to crash or become unusable. While this type of attack does not typically result in theft or data loss, it can cause a significant loss in time and damage your brand reputation as you work to repair the disruption.

By becoming familiar with these threats, you’ll be better prepared to detect and stop them before hackers can steal your data, disrupt your business, or cost you money.

Protecting Sensitive Data

One of the key motivators for cybercriminals isn’t money — it’s your data. Research conducted by the Identity Theft Resource Center found that 73% of small business owners experience data breaches within the last year.³ In these attacks, employee and consumer data were the most frequent targets.

Fortunately, protecting your business data doesn’t need to involve complex digital infrastructure or costly protection software. You can start with the basics: using strong passwords and following good security protocols.

At a minimum, begin by implementing these cyber security tips for small businesses:

• Set minimum password standards that include a mix of letters, numbers, and symbols, and don’t allow passwords with predictable combinations or common words.
• Pair strong passwords with two-factor authentication (2FA) for an additional layer of security.
• Limit access to sensitive data to only those employees who need it.
• Use data encryption for the most sensitive data and for personally identifiable information (PII) of employees or stakeholders.
• Establish a regular data backup and recovery process stored in an offsite location so your business can get back up and running faster if anything ever gets compromised.

Implementing Basic Security Measures

For cybercriminals, finding ways to exploit software vulnerabilities is a full-time job. As much time as you spend building up your business, that’s how much time they spend trying to find ways to tear it out from under you. With this in mind, implementing basic security measures is critical.

After my business had been established for a while, I realized I needed some additional support in this area. However, I wasn’t in a position to hire an IT team or even a temporary consultant. Instead, I utilized my local Small Business Development Center, which offers free small business mentoring in a variety of areas through its SCORE⁴ program. My mentor shared these tips for protecting your business systems:

• Regularly updating your software and operating systems is one of the simplest yet most effective ways to protect against cyberattacks. Enabling automatic updates puts this part of your security process on autopilot.
• Firewalls and antivirus software are your first line of defense against incoming threats. Without a basic firewall or current antivirus software, you are basically inviting hackers to an all-you-can-eat buffet of your data.
• If you utilize a Wi-Fi network (and let’s face it – most businesses today do), it should be password protected and encrypted. Do not post the password anywhere that is publicly visible, and change the password often.
• If you have employees, develop written security protocols that are easy to follow and consistently implemented. These should include best practices for employee training, incident response information, and a bring-your-own-device (BYOD) policy if employees are allowed to use their own devices for work-related tasks.

Educating and Training Employees

Especially in today’s landscape of deepfakes and AI, cyber threats are becoming more sophisticated and getting harder to detect. That’s why employee education is a critical piece of any cybersecurity plan. An education program should foster a culture of accountability where all employees recognize their role in avoiding malicious attacks and maintaining proper security.

As a business owner, you can lead this charge through regular communication, proper training, and setting good examples. By making cybersecurity a shared responsibility, you’ll create an environment where employees feel empowered to protect your business and data.

Creating an Incident Response Plan

Sometimes, you can take all the right precautions and still become the target of an attack. If that happens, having a clear plan to take quick action could mean the difference between a hectic afternoon and weeks of downtime with thousands of dollars lost.

My husband is a senior network administrator and was working for a company that got hit with a Russian cyber attack, despite having a 20+ member IT team and a robust security strategy in place. Two employees were not following protocol and found a backdoor to access unauthorized websites on company devices during their breaks. This gave the hackers the window they needed to access the company systems.

Fortunately, the security team identified the breach immediately, and they quickly closed off the attack and reimaged the device that had been used to gain entry. Their speedy defense stopped the attack in minutes, and the business lost a bare minimum of data on the targeted device. Had they not been able to respond quickly in this situation, the hackers would likely have been able to infiltrate the entire company network, causing much more havoc and potentially costing the company thousands of dollars.

Developing a response plan allows you and your team to act calmly and quickly during high-stress situations. Here are key steps to include in your plan:

1. Identify the nature of the attack and its entry point, if possible.
2. Notify your security team for immediate assistance, sharing as much information as you have available.
3. Contain the threat to prevent further damage.
4. Communicate with employees, customers, and stakeholders to keep them informed transparently, both during and after the incident.
5. Eliminate the threat by removing malware or, if necessary, reimaging the devices.
6. Recover from the attack by ensuring all entry points are closed off, restoring necessary backup files, and conducting a post-incident review to prevent future vulnerabilities.

For additional guidance on building out an incident response plan, the Cybersecurity & Infrastructure Security Agency (CISA) provides small businesses with helpful resources, questions, and templates.⁵

Staying Informed About Evolving Threats

Cybersecurity threats are always changing, and hackers are getting smarter with more digital tools at their disposal. The best way to protect yourself? Stay in the know. Regularly review trusted sites like the Cybersecurity and Infrastructure Security Agency (CISA)⁶ and National Institute of Standards and Technology (NIST)⁷ for the latest on new threats and the best cybersecurity tips for small businesses. Join a webinar or explore their free tools — they’re there to help.

Building a Proactive Defense Against Cyber Threats

Cyber threats are a real risk for small businesses, but protecting your company doesn’t have to be complicated. By staying informed, following basic security tips, and building a preparedness plan, you can keep your data safe and your customers’ trust intact. Don’t wait for a problem to pop up. Take simple, proactive steps today to protect your business and stay ahead of evolving risks.

1. https://insights.corvusinsurance.com/cyber-risk-insight-index-q1-2022/survey-findings-smb-cyber-readiness ↩︎
2. https://www.coveware.com/blog/2022/2/2/law-enforcement-pressure-forces-ransomware-groups-to-refine-tactics-in-q4-2021 ↩︎
3. https://www.idtheftcenter.org/post/2023-business-impact-report-record-level-attacks-still-high-confidence-in-defense/ ↩︎
4. https://www.sba.gov/local-assistance/resource-partners/score-business-mentoring ↩︎
5. https://www.cisa.gov/cyber-guidance-small-businesses ↩︎
6. https://www.cisa.gov ↩︎
7. https://www.nist.gov/cybersecurity ↩︎