A Cyber Threat Primer 

No matter the size or type of your business, cybersecurity should be a top concern. There was a time when good physical security was enough to protect your investment and your employees – that is no longer the case. Small businesses are attractive targets for cyber criminals due to limited resources and perceived lack of security measures. Inadequate security measures like outdated software, weak passwords, and unsecured networks make your business an easier target. Hackers will exploit these vulnerabilities, aiming to steal your sensitive data, disrupt your operations, or extort your money. In this article we will discuss the most common cyber threats and some simple steps to help safeguard your business. 

Data Breach 

“Data is the new oil.” – Clive Humby

Businesses run on data – data on your customers, financials, employees, inventory, etc. Protecting your data is equivalent to protecting your investment. Criminals know this, which is why since 2019 roughly 50% of companies have reported at least one data breach per year (30+ data breach statistics and facts). A data breach occurs when sensitive or confidential information is accessed, stolen, or exposed by criminals or other unauthorized individuals. The consequences often include financial loss, legal liabilities, and reputational damage. 

Addressing the threat:

– Access Control: Restrict access to sensitive data based on roles and responsibilities. Implement strong authentication methods like two-factor authentication (2FA) to ensure only authorized personnel can access critical systems. 

– Data Encryption: Encrypt sensitive data both in transit and at rest. Encryption adds an extra layer of protection even if data is compromised.

– Incident Response Plan: Create a plan detailing how the business will respond to a data breach or cyberattack. Assign roles, responsibilities, and steps to mitigate damage and communicate with stakeholders. 

– Employee Offboarding: Ensure that departing employees have their access revoked promptly to prevent unauthorized access. 

– Secure Wi-Fi Networks: Protect Wi-Fi networks with strong passwords and encryption. Set up a separate guest network to isolate visitor access.

Financial Fraud 

“Stealing isn’t so easy; often, it’s hard work. Otherwise, we’d all be doing it.” – Elfriede Jelinek

Stealing still isn’t easy, but it’s certainly different. Cyber criminals commit financial fraud today by gaining unauthorized access to your business’ financial systems with the goal of stealing funds or diverting payments. This can include fraudulent wire transfers, invoice scams, and unauthorized transactions that can lead to direct financial losses. 

Addressing the threat:

– Segregation of Duties: Divide financial responsibilities among different employees to prevent a single person from having too much control over financial transactions. For instance, the person who initiates payments should not be the same person who approves them.

– Regular Reconciliation: Regularly reconcile financial records, bank statements, and accounts payable and receivable to detect any discrepancies or irregularities promptly. 

– Vendor Verification: Verify the legitimacy of new vendors before making payments. Confirm their identity through official channels and contact information.

– Secure Payment Channels: Use secure and verified payment methods, and regularly update passwords for online banking and financial systems. 

– Audit Trails: Maintain detailed records of financial transactions and actions taken by employees. This creates an audit trail that can be reviewed in case of suspicion or investigation.

Reputation Damage 

“It takes 20 years to build a reputation and 5 minutes to ruin it.” – Warren Buffet

Recent studies show over 90% of customers check customer reviews online before visiting a business (The Importance Of Online Customer Reviews). Negative publicity, customer distrust, or the dissemination of false information can seriously harm your business’ reputation. These threats could be in the form of fake reviews, social media attacks, or even leaked internal documents. 

Addressing the threat:

– Consistent Brand Messaging: Ensure that your brand messaging is consistent across all channels and interactions, reflecting your values and mission accurately. Monitor and manage your online presence, including social media, review platforms, and business directories. Respond professionally to customer reviews and comments.

– Customer & Employee Satisfaction: Prioritize excellent customer service by promptly addressing issues, providing solutions, and valuing customer feedback. Create a positive work environment, as happy employees are more likely to provide better customer experiences.

– Social Media Guidelines: Establish guidelines for social media usage by employees to prevent inadvertent reputation-damaging posts. 

– Data Privacy: Safeguard customer data with strong cybersecurity practices, complying with relevant data protection regulations.

– Recovery Strategy: In the event of reputation damage, have a recovery strategy in place to rebuild trust and demonstrate commitment to improvement.  

Operational Disruption 

“Watch the little things; a small leak will sink a great ship.” – Benjamin Franklin 

Cyberattacks, such as ransomware or distributed denial-of-service (DDoS) attacks, can disrupt your operations by rendering the systems you rely on inaccessible or degraded. This often results in downtime, loss of productivity, and potential financial losses. 

Addressing the threat:

– Business Continuity Plan: Develop a comprehensive business continuity plan that outlines steps to take in the event of various disruptions, such as natural disasters, cyberattacks, or supply chain issues. 

– Redundancy: Consider implementing redundancy for critical systems, such as backup power sources, duplicate hardware, and diversification of your supply chain.

– Regular Maintenance: Perform regular maintenance and inspections on equipment and infrastructure to prevent unexpected failures. 

– Backup and Recovery: Regularly back up critical data, utilize cloud-based services for data storage and applications, and test the restoration process to ensure business continuity in case of data loss or ransomware attacks.

– Communication Plan: Establish a clear communication plan to keep employees, customers, and stakeholders informed during disruptions. Conduct drills and simulations of various disruptive scenarios to ensure employees are familiar with emergency procedures.

Compliance Regulations 

“If you think compliance is expensive – try non-compliance.” – Paul McNulty 

The specific regulations your business must comply with are based on the industry you operate in, where you are located, and the type of data you handle. For example, if you handle patient health information in the United States, you must follow HIPAA (Health Insurance Portability and Accountability Act). There is a Payment Card Industry Data Security Standard (PCI DSS) you must follow to handle credit card information and securely process credit card transactions, several financial regulations, employment and labor laws, and many others. Failing to meet these regulations can result in mishandled customer data or a failure to secure sensitive information, which can lead to legal consequences and financial penalties. 

Addressing the threat:

– Understand Applicable Regulations: Thoroughly research and understand the specific compliance regulations that apply to your industry and business activities.

– Document Policies and Procedures: Develop clear and comprehensive policies and procedures that outline how your business will adhere to compliance regulations. Establish guidelines for retaining and securely disposing of documents to ensure compliance with record-keeping regulations.

– Internal Controls: Implement internal controls to monitor and enforce compliance with regulations across all business operations.

– Regular Audits: Conduct periodic internal audits to assess your compliance status and identify areas that need improvement. 

– Compliance Software: Consider using specialized compliance software to automate monitoring, reporting, and management of regulatory requirements. 

Physical Security 

“Cyber security is much more than a matter of IT.” – Stephane Nappo 

Just because we’ve spent the last several paragraphs describing threats in cyberspace doesn’t mean we can forget about physical security. Physical breaches, such as unauthorized access to servers or network equipment, can lead to data breaches, malware insertion, or even complete network compromise. You can bolster your cyber defenses by tightly controlling access to physical spaces, implementing surveillance, and securing hardware. By taking a holistic approach that integrates both physical and cyber security, you build a comprehensive protective barrier against potential threats, ultimately safeguarding your sensitive data and digital assets. 

Addressing the threat:

– Access Control: Use secure locks, access cards, and surveillance cameras for your physical premises. 

– Regular Updates and Patches: Keep the software for your physical security equipment up to date. Regularly update and patch software to address vulnerabilities and weaknesses that could be exploited by attackers. 

– Incident Response Plan: Develop a comprehensive incident response plan that covers how to handle physical security incidents like break-ins and theft. 

– Physical Security Measures: Invest in physical security measures such as security cameras, alarm systems, and proper lighting for your premises. Restrict access to sensitive areas and consider implementing measures like motion sensors and security personnel if necessary. 

– Continual Monitoring and Testing: Regularly monitor your physical premises and digital infrastructure for any signs of suspicious activity. Perform regular security assessments, penetration testing, and vulnerability assessments to identify weaknesses before attackers do. 

Third-Party Vendors 

“More connections to more devices mean more vulnerabilities… if you control the code, you control the world.” – Marc Goodman 

Now, here’s the tough part. Thanks to third-party vendors, you could account for every threat discussed thus far and still be vulnerable. Every vendor you rely on for services, software, or products, must also account for all of these threats. Unfortunately, you have limited control over security measures or quality assurance for these vendors. If they have weak cybersecurity practices, they can become an entry point for attackers, and your business may be targeted as a result.  

Addressing the threat:

– Vendor Assessment: Assess potential vendors before entering into any business relationship. Consider their past history of security incidents or breaches, then evaluate their cybersecurity policies, practices, and track record. 

– Contractual Agreements: Include cybersecurity clauses in your contracts that outline the vendor’s responsibilities for protecting your data and systems. This could include details about data protection, breach notification, and liability in case of security incidents. 

– Data Handling and Sharing: Clearly define how the vendor will handle and share your data. Limit the amount of sensitive information you share with vendors to the minimum necessary for them to provide their services.

– Business Continuity: Consider the vendor’s business continuity and disaster recovery plans. Ensure they have measures in place to maintain service in the event of a cybersecurity incident or other disruption. 

– Incident Notification: Specify in your contract how quickly and through what channels the vendor should notify you in case of a cybersecurity incident.

Where to go from here

If you haven’t already, start by training your employees to recognize and respond to cyber threats.  Cybersecurity isn’t something you do once; it’s an ongoing commitment. You and your employees must stay vigilant and adapt to evolving threats. Encourage and enforce policies requiring your employees to use strong, unique passwords and enable multi-factor authentication. Regularly update software to mitigate vulnerabilities. Be extra cautious with emails; avoid clicking on suspicious links or sharing sensitive information. Always back up your data to mitigate the impact of ransomware. Conduct regular security assessments to identify and address vulnerabilities and cultivate a culture of cybersecurity awareness across your company to ensure everyone helps keep your business safe. 

If this feels like too much, we offer a full spectrum of cybersecurity services to ensure your organization has securely implemented safeguards across your technology stack, test the effectiveness of your processes and procedures, and validate that your team has the tools and experience to combat cyber threats.

We can schedule a meeting to discuss the challenges your team is trying to solve and align the most effective solution to your needs.