Cyberattacks are increasingly commonplace, with data revealing that the number of victims is rising year on year. In 2022, 80% of critical infrastructure organisations fell prey to ransomware attacks or malware that threatened to use individuals' sensitive data for malicious purposes.
While many individuals believe that big businesses are at the most risk from cyberattacks, the truth couldn't be further from this. Recent headlines all point to small businesses being cybercriminals' preferred target as the security of larger companies is harder to crack.
Managing a business in its developmental stages is difficult enough since it takes all the owner's efforts to scale the business. In addition to investment in scale-up strategies, efforts need to be directed towards protecting the enterprise from the wide range of cyberattacks that have proliferated in the last few years, from ransomware to malware.
While the nature of cyberattacks continuously evolves, so should businesses' cybersecurity strategies as far as budgets and resources allow. Businesses must stress the importance of securing business operations and clients' data to employees to minimise the legal, financial, and reputational repercussions of a cyberattack.
Small businesses must be wary of lawsuits
Businesses that handle customers' personal data must protect that data at all costs. According to the experts from www.how-to-sue.co.uk, compromising or losing customers' data can have serious legal consequences which will be detrimental to the company's bottom line and reputation. Even if the business is the target of a cyberattack, it can face liability for failing to secure sensitive customer data, implementing effective precautionary measures or failing to address the breach promptly.
A person who has entrusted their data to a business and has it stolen, leaked, or compromised may be within their rights to sue the company.
Other ways cybercrimes affect small businesses
As every entrepreneur is already aware, cybercrimes come with a number of serious consequences. These can have a much bigger impact on a small business than a similar attack on a large and financially-secure company. Fees and fines are a small business' worst nightmare, and the damage can quickly add up when a business' finances are damaged in both the short and long term.
One of the easiest examples to understand is that of a firm that accepts customers' debit and credit cards for payment purposes. When the business becomes a victim of fraud, the potential financial damage to the business is immediately apparent. The business must also act to minimise further damage to customers whose data has been stolen. They must investigate the cause of the data breach to gather valuable information to help secure the business' data and integrity going forward.
Additional costs can include those related to the improvement of security strategies. Companies that experience a data breach and survive can incur further expenses from obligatory credit monitoring for customers who suffered from the breach.
Small businesses need to invest in cybersecurity
Financial repercussions cannot be avoided when a business falls victim to a data breach. However, there are ways to minimise the consequences, most of which rely on efficient technological tools.
Technological solutions including communication software, databases, and broadband connections are potent tools for preventing cybercriminals from achieving their malicious goals. Employees must be provided with 'clean devices' that use the latest security software and operating system to safeguard data against malware, viruses, and other threats.
Another way to boost cybersecurity is to effectively train employees on using the equipment and programmes provided. When employees have the necessary knowledge and are aware of the risks, it prepares them to work safely with the data.
National governments are encouraging businesses to increase their cyber security in the face of weekly cyber-attacks threatening their integrity. The National Cyber Security Centre has developed guides to help small businesses minimise cyberattack threats.
Summing it all up
Cyberattacks have become increasingly sophisticated and harder to detect as cybercriminals develop more advanced tools. At the same time, cybercriminals' attention is drawn to businesses that lack efficient cybersecurity strategies, employ less stringent defences and spend insufficient time and money on suitable cybersecurity measures.
The need to invest in more efficient and advanced security measures, train employees on good security practices, and develop new and better cybersecurity strategies is more urgent than ever. It's hoped that the number of companies that take the threat of cyber security seriously continue to grow as malicious techniques continue to evolve.
If you are ever involved in a data breach, or have your information compromised, remember that there are steps you can take to minimise the impact. Gather as much evidence of the incident as possible and reach out to a specialist if you feel overwhelmed.
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