Protect Your Small Business from Cyber Risks
We live in an online world, which includes more unanticipated risks that comes with being connected. Cyber risks like ransomware and email “phishing” are just a click away, and they’re not going away anytime soon. Small and medium-sized businesses are not immune to cyberattacks. In fact, this attitude is what makes small- and mid-size businesses prime targets for hackers: a lack of concern means business owners are less likely to implement necessary safeguards, which makes them easier targets.
The Chubb Cyber Index shows that 76% of all cyber incidents at small- and mid-sized businesses over the last three years were due to external factors, versus 61% for companies larger than $500 million in revenue. In fact, these smaller businesses are ideal targets for cybercriminals because of outdated or under prioritized security measures. Hackers and data thieves can deploy attacks quickly, cheaply and anonymously — increasing the likelihood of successful attacks against smaller businesses.
Chubb encourages small business owners to ask for help — especially when educating their employees, as it is among one of the most important elements to protect businesses from experiencing and bearing the financial weight of a cyber incident.
Employee Training & Basic Technology Protections
In addition to employee training, small- and mid-size businesses should employ the following to protect against cyberattacks:
- Adequate antivirus software
- Multi-factor authentication
- Password security and hygiene
- Monitoring of all network activity
- Updated operating systems
Related: What to Do After You've Been Hacked
Back Up Your Data on Regular Basis
In addition to restoring against a cyber-attack, data loss could be caused by hardware failure or a natural disaster. Backup copies of your data are a form of insurance against devastating data loss. Many families, home-based businesses and small businesses do not adequately backup information.
Businesses should back up operational, financial and customer information, including:
- Accounting databases, including AR and AP records
- Financial management reports
- Payroll records and employee files
- Point-of-sale and transaction history
- Customer records and CRM database
- Fixed asset inventory, photos, and preventative maintenance logs
- R&D, blueprints, and proprietary information
Determining Your Backup Schedule
To determine backup frequency, think about how much data you create on a daily, weekly and monthly basis. Then decide how much you could afford to lose should disaster strike when you are between scheduled backups. Restored data is only as good as your most recent backup.
If you take a lot of photos or work from home as a contractor or creative professional, consider backing up more frequently. Most businesses would benefit from an automated system for daily or weekly backups.
Backup Storage: 3-2-1 Rule
Once you have decided on a regular backup schedule, follow the 3-2-1 rule for backing up.
- Make at least three copies of your files and information.
- Create those backups on two different types of storage media—including USB drives, external hard drives, tape backups, or cloud storage.
- Keep at least one copy of your backup offsite, either in the cloud or safely in another building, a safe deposit box, or at another business location.
As cyber threats continually evolve, cyber insurance — in connection with these other preventative measures — can play a key role in the awareness, preparedness, and resiliency of small- and mid-size businesses. IMT Insurance offers a comprehensive cyber insurance solution to provide protection to businesses.
For more information on how to protect your business against Cyber Attacks, talk to your local IMT Agent today!
