Small businesses face mounting challenges in protecting their digital assets. The threat of cyberattacks is real, and for many, the consequences of a breach can be catastrophic.
As highlighted in a recent Mastercard report, the stakes are high, particularly for micro businesses and solopreneurs, where the financial impact of a cyber incident can range from £120,000 to £1.24 million per attack.
Based on insights from payment card services provider Mastercard, this article explores the growing cyber threats targeting small enterprises and offers actionable strategies to fortify their defences.
The growing threat landscape
Cyberattacks are not just a concern for large corporations; they disproportionately affect small businesses. “Small businesses are targeted by hackers precisely because of their size,” explains Jane Prokop, Mastercard’s global head of small and medium enterprises.
In fact, in 2023, nearly 43% of all cyberattacks were directed at smaller businesses, many of which lack the resources to hire dedicated IT or cybersecurity personnel.
As Prokop notes, “Trust that took years to build can be shattered in seconds — and may never be restored.”
As small enterprises digitise their operations, the risks only increase. Many business owners mistakenly believe they are too small to attract the attention of cybercriminals.
However, with the peak holiday shopping season approaching, the surge in online transactions raises the likelihood of attacks. Thomas Sullivan, vice president of small business policy at the U.S. Chamber of Commerce, acknowledges that while “more and more small businesses are taking steps, they still are targets.”
Practical strategies for protection
To combat these rising threats, small business owners must implement robust cybersecurity measures. Here are six essential tips for safeguarding sensitive data:
- Update your devices: Regularly updating your software is crucial for defending against emerging threats. Automatic updates help ensure that your systems are protected with the latest security features.
- Think beyond simple passwords: Instead of relying on weak passwords, consider using memorable passphrases and enabling multi-factor authentication. This adds an extra layer of security by requiring additional verification methods, such as biometrics.
- Prevent phishing and malware: Utilise anti-virus software and ad blockers to shield your systems from malicious attacks. A Virtual Private Network (VPN) can further protect your online activity by encrypting your data, making it harder for cybercriminals to access your information.
- Back up and recover: Regularly back up your data and store it in a secure location. This ensures that you can recover critical information in the event of a cyber incident, minimising disruption to your business.
- Protect your mail and reputation: Implement a DMARC (Domain-based Message Authentication, Reporting, and Conformance) tool to safeguard your email domain from spoofing. This protocol helps to prevent unauthorised use of your email address.
- Know your weak spots: Assess the cyber risks associated with your supply chains and third-party partnerships. Tools like My Cyber Risk powered by RiskRecon can help identify vulnerabilities, enabling you to address potential exposures proactively.
A collective responsibility
As Mastercard’s report underscores, empowering small businesses through digitisation is vital for economic growth.
However, this must be accompanied by a strong commitment to cybersecurity. Proactive measures taken now can prevent costly breaches and safeguard not only the businesses but also the livelihoods of the communities they serve.
As we enter the busy holiday season, a security-centric approach is essential for ensuring the collective success of the global economy.
