Think your business is too small to be a target for cybercriminals? Think again. Recent trends reveal a chilling reality—small and medium-sized businesses (SMBs) are prime targets for cyberattacks. In fact, cybercriminals are increasingly shifting focus to these companies, exploiting the belief that cybersecurity for small businesses is unnecessary or unaffordable. This blog post explores why SMB cybersecurity is critical, the devastating impact of cyberattacks, and how you can protect your business.
The Rising Threat to SMBs
Alarming Statistics
In 2021, an astonishing 61% of SMBs reported experiencing cyberattacks (BNC Systems) (TechRepublic). The most common forms of these attacks included phishing, ransomware, and malware. Unlike larger corporations, SMBs often lack robust security resources, making them easier targets. According to the Canadian Chamber of Commerce, the average cost of a ransomware attack on SMBs in Canada in 2021 was $100,000, based on a survey from Insurance Bureau of Canada. Without strong cybersecurity for SMBs, your company could easily fall victim to this growing trend.
Real-World Examples
A 2022 report highlighted that 37% of ransomware attacks targeted businesses with fewer than 100 employees. This shift in ransomware tactics reflects an increasing focus on smaller companies that may not have robust security defenses, making them easier targets for attackers. You can find more details in the full article on Tech.co. One of the most prominent cases involved a small healthcare provider that paid $300,000 in ransom to recover their encrypted data (Comparitech). Unfortunately, these types of attacks are becoming more frequent, and many businesses struggle to fully recover from the damage.
Why SMBs Are Attractive Targets
Valuable Data
One of the primary reasons cybercriminals target SMBs is the valuable data they hold. Customer information, financial records, and intellectual property are goldmines for attackers. Despite holding such valuable data, many SMBs lack the robust cybersecurity measures that larger enterprises have in place.
Limited Security Resources
SMBs often operate with limited security resources. They might not have dedicated IT staff or the budget for advanced security solutions. This makes them easier targets for cybercriminals looking to exploit these vulnerabilities.
Use of Personal Devices and Remote Work
The increasing trend of remote work means that employees often use personal devices to access company data. These devices may not have the same level of security as corporate devices, providing an additional entry point for attackers which weakens the SMBs overall cybersecurity posture.
The Far-Reaching Consequences
Immediate Financial Loss
The immediate financial loss from a cyberattack can be staggering. From paying ransoms to the cost of recovering data, the expenses add up quickly. According to a study, the average cost of a ransomware attack on SMBs in 2023 was $100,000 (ThreatLabz).
Long-Term Repercussions
Beyond the immediate financial impact, there are long-term repercussions such as damage to reputation, legal liabilities, and operational downtime. Studies show that 50% of small businesses take 24 hours or more to recover from an attack and Cyber Crime Magazine reports that 60% of SMBs shut down within six months of experiencing a significant cyberattack.
Operational Disruption
Cyberattacks can cause severe disruption to business operations. The time taken to recover and restore systems can lead to significant downtime, affecting productivity and revenue.
Proactive Steps for SMBs
Multi-Factor Authentication (MFA)
Implementing multi-factor authentication (MFA) is one of the simplest ways to improve your SMB’s cybersecurity. Adding an extra layer of security beyond just passwords can significantly reduce the risk of unauthorized access. MFA requires users to provide two or more verification factors to gain access to a resource.
Regular Backups
Ensuring that data can be restored quickly in the event of an attack is crucial. Regular backups can help you recover your data without having to pay a ransom. Make sure to use a combination of cloud and local backups and automate the process to ensure consistency.
Employee Training
One of the most effective ways to protect your business is through employee cybersecurity training. Deloitte reports that 91% of all cyber breaches begin with a phishing email, making it crucial to educate staff on recognizing phishing emails, safe browsing, and other best practices.
Implementing MFA
What is MFA?
MFA requires multiple forms of identification before granting access. This could be something you know (a password), something you have (a smartphone), or something you are (fingerprint).
Benefits of MFA
MFA significantly reduces the risk of unauthorized access. Even if a password is compromised, the attacker would still need the second form of identification to gain access.
How to Get Started
Implementing Multi-Factor Authentication (MFA) is simpler than you might think. Many popular platforms, like Microsoft 365 and Google Workspace, offer built-in MFA solutions that can easily integrate into your existing systems. By enabling MFA, you add an essential layer of security, protecting your organization from unauthorized access.
It’s important to encourage employees to use MFA not only for their work accounts but also for their personal accounts to build strong security habits. Start by rolling it out in key areas, such as email, cloud storage, and any applications handling sensitive data. Make it easy for your team to adopt by providing clear instructions and support.
If you’re unsure where to start or need help implementing MFA across your organization, contact Open Door MSP today. We specialize in seamless MFA rollouts, ensuring that your team stays secure without the hassle.
The Importance of Regular Backups
Why Backup?
Regular backups ensure that you have a recent copy of your data in case of an attack. This can save you from the financial burden of paying ransoms.
How Often Should You Backup?
The frequency of backups depends on how often your data changes. For many businesses, daily backups are sufficient. However, some high-volume industries may require more frequent backups.
Choosing a Backup Solution
There are many backup solutions available, ranging from cloud-based services to physical storage devices. Choose a solution that fits your business needs and budget.
Employee Training Programs
Why Train Employees?
Employees are often the first line of defense against cyber threats. Regular training can help them recognize phishing attempts and other common attacks.
What Should Training Include?
Training should cover the basics of cybersecurity, how to recognize phishing emails, and what to do if they suspect a security breach.
How to Implement Training
Use a mix of online courses, in-person workshops, and regular updates to keep employees informed. Make training an ongoing process rather than a one-time event.
Building a Cybersecurity Culture
Leadership’s Role
Leadership should set the tone for a cybersecurity culture. When leaders prioritize security, employees are more likely to follow suit. As a co-founder of Open Door MSP with over 20 years of experience in IT support and managed services, I’ve seen firsthand how businesses, both large and small, can significantly strengthen their defenses by being proactive about cybersecurity.
At Open Door MSP, we believe in more than just installing technical solutions. We’re here to help build a culture of security within your business, where everyone from the top down understands the importance of protecting your data and systems. We aim to make security something that’s part of your everyday operations, not just an afterthought.
Encouraging Vigilance
Encourage employees to report suspicious activities without fear of reprimand. Create a safe environment where security concerns can be openly discussed.
Rewarding Good Practices
Reward employees who follow good cybersecurity practices. This can be as simple as a shout-out in a meeting or more tangible rewards like gift cards.
Utilizing Security Software
Antivirus and Antimalware
Invest in good antivirus and antimalware software to protect your systems. These tools can detect and remove threats before they cause harm.
Firewalls
Firewalls act as a barrier between your internal network and potential threats from the internet. Ensure that your firewall is properly configured and regularly updated.
Encryption
Encrypt sensitive data to protect it from unauthorized access. Even if data is intercepted, encryption ensures that it cannot be read without the proper decryption key.
Partnering with Experts
Managed Security Service Providers (MSSPs)
Consider partnering with an MSP (Managed Security Service Provider) like Open Door MSP to monitor your systems 24/7. With over two decades of experience, I’ve led my team to provide tailored solutions that fit the specific needs of SMBs. Our comprehensive cybersecurity solutions are designed to protect your data while allowing you to focus on growing your business.
Cybersecurity Consultants
Consultants can offer valuable insights and help you develop a robust security strategy. They can assess your current security posture and recommend improvements.
Continuous Improvement
Cybersecurity is an ongoing process. Regularly review and update your security measures to stay ahead of evolving threats.
Conclusion
No business is too small to be a target for cybercriminals. It’s imperative for SMBs to prioritize cybersecurity and implement robust measures to protect their operations. Ignoring these threats can lead to severe consequences that may be difficult to recover from.
Does your business need help hardening your on-premise and cloud environments? Reach out to Open Door MSP, and we will run a free assessment for the first five businesses that respond. We’ll provide an action plan that either we or your current MSP can implement to reduce and secure your business’s attack surface.
Take the first step towards a more secure future. Contact Open Door MSP today and let us help you fortify your defenses against the ever-growing cyber threats.
Citations:
- Canadian Chamber of Commerce, “Canadian Small Business Cybersecurity Survival Guide,” (2021), available at: https://chamber.ca/canadian-small-business-cyber-security-survival-guide/.
- Insurance Bureau of Canada, “Many Small Businesses Vulnerable to Cyber Attacks,” (2021), available at: https://www.ibc.ca/news-insights/news/many-small-businesses-vulnerable-to-cyber-attacks.
- Cyber Crime Magazine, “60 Percent of Small Companies Close Within 6 Months of Being Hacked,” (2019), available at: https://cybersecurityventures.com/60-percent-of-small-companies-close-within-6-months-of-being-hacked/.
- Deloitte, “91 Percent of All Cyber Attacks Begin With a Phishing Email to an Unexpected Victim,” (2019), available at: https://www2.deloitte.com/my/en/pages/risk/articles/91-percent-of-all-cyber-attacks-begin-with-a-phishing-email-to-an-unexpected-victim.html.
- Comparitech, “NRS Healthcare Confirms Ransomware Attack,” (2022), available at: https://www.comparitech.com/news/nrs-healthcare-confirms-ransomware-attack-ransomhub/.
- Zscaler ThreatLabz, “2023 ThreatLabz Ransomware Report,” (2023), available at: https://info.zscaler.com/resources-industry-reports-2023-threatlabz-ransomware-report.