Cyber Threats to Small Businesses (& How to Prevent Them)

Hackers target small businesses because they often lack the resources or the means to defend against cyberattacks. As a leading independent agency providing NJ Cyber Insurance to them, we seek to help clients protect their businesses from rising cybercrime threats.

Defend Against Cyberattacks

Cybersecurity is the practice of protecting data from unauthorized access, destruction, or modification to thwart criminal efforts by preventing intrusions into computers and networks and ensuring information security.

Cases of Cyberattacks on Small Businesses on the Rise

While most newsworthy cyberattacks highlight prominent organizations, hackers increasingly target small businesses. For example, according to a report from Verizon Business, smaller companies were the target of nearly half of all cyberattacks.

Many small businesses don’t have the resources and expertise to defend against cyberattacks. And while a lack of money plays a part, so does a lack of knowledge about making their systems secure. As more attacks occur, smaller companies will find it harder to keep up with new threats if they fail to learn about cybersecurity and change their practices accordingly.

Why Should Small Businesses Care About Cybersecurity?

If you own a small business, there’s no doubt that cyberattacks pose a threat to your bottom line. You can lose customers by having their financial records stolen or your website defaced by hackers. There are several reasons why small businesses need to pay attention to cybersecurity.

They’re easier targets – Hackers know that small businesses often lack the resources to secure their systems effectively. Unfortunately, many small businesses don’t have enough people on staff to properly manage security issues. As a result, it’s often easier for hackers to break into small companies than larger ones.

They’re less likely to recover from a breach – large corporations usually have deep pockets to cover the costs of data loss. They have the funds necessary to hire experts and implement robust recovery procedures to defend against cyberattacks. Smaller companies rarely have the same resources to deal with a security incident.

Types of Attacks on Small Businesses

Cyberattacks are constantly evolving; meaning businesses must continue to be vigilant to defend against cyberattacks. The most common type of cyberattack involves hacking into a company’s network. These hacks can occur through social engineering, phishing emails, or other methods. To prevent these kinds of attacks, you must educate your employees about cybersecurity. Employees need to understand what constitutes good behavior online, and they need the training to spot scams and take appropriate action.

Phishing and Social Engineering Tactics 

Phishing is a way hackers attempt to gain access to sensitive information. For example, they gain network access by sending email messages that appear a legitimate source to their intended victims.

Hackers use social engineering tactics to get unsuspecting users to share their personal information. For instance, hackers may pretend to be a customer service representative and ask for sensitive information. Sometimes hackers will impersonate a friend to trick them into sharing sensitive information.

The types of social engineering attacks include:

• Phishing email scams – Hackers and identity thieves use email spam and false websites that look identical, texts, and instant messages to trick people into divulging sensitive information like bank account passwords and credit card numbers.
• Spear phishing emails – “Spear phishing” targets a specific individual or a group with information known to be of interest. These social engineering attacks take advantage of common human traits such as a desire to help others, share similar tastes or views, or be curious about current events. These email messages attempt to convince recipients to open a malicious link, attachment, or document.
• Shoulder surfing – Just as its name sounds, shoulder surfing can occur whenever personal information is shared in a public space. The prominent places include ATMs and payment kiosks, but virtually anywhere that laptops, tablets, or smartphones are used to enter personal data in a public spot. Shoulder surfers can operate at a distance and interpret finger movements as someone enters numbers on a keypad. Or they can go unnoticed as they stealthily observe targets at airports, train stations, subway stops, bars, and restaurants.
• Smishing uses mobile phones to send SMS (Short Message Service) to carry out smishing attacks, which gives “Smishing” its name.
• Vishing combines phishing techniques with voicemail or voice conversations that attempt to gain personal data by posting as a representative of a financial organization, software supplier, or other trusted organization. For example, the scammer might report that your account or computer is compromised and offer to help you install their malware presented as a security update. Or they might claim to represent a bank or law enforcement agency. 

Malware

Malware is the second most significant threat to small businesses. Hackers try to infect your computer by sending you an email containing a link to a site that contains malware. Your device may become infected if you open the link. To avoid getting infected, go directly to a secure web page instead of clicking on links in emails. Businesses should be careful about what they download onto their computers. Malware can cause problems if you don’t know how to remove it.

Ransomware

Ransomware is an attack that encrypts files and holds them hostage until the victim pays a ransom. The ransomware is usually distributed via email attachments containing malicious code. Ransomware attacks are very profitable since victims must pay up before recovering their data. Small businesses are most vulnerable to these types of attacks. Ransomware demands average around $100,000.

Ransomware hit the hardest on healthcare companies. Locking patients’ files and appointments can cause a company to shut down if there hasn’t been enough time to backup files. In addition, small businesses need to ensure strong endpoint security across all business computers to protect against ransomware attacks.

Ransomware rollback features allow companies to detect and remove malicious software before it can do damage. Cloud backup solutions provide a secure means of backing up data and mitigating data loss. Different data backups are available, so it’s essential to research the optimal method. And after an attack, implement data backup and recovery as soon as possible.

Weak and Insecure Password Problems

A weak password is easy for people to guess or crack, and it doesn’t help defend against cyberattacks. Passwords should have eight characters with at least three numbers and two letters. Weak passwords make it easier for cybercriminals to access sensitive information such as credit card details, bank account information, or other personal information.

Businesses should also implement Multi-Factor Authentication (MFA) technologies. They ensure that users need more than just a password to have full access to business accounts. This method includes having multiple security measures, such as a passcode sent to a mobile device, an email confirmation, etc. These security controls help protect against unauthorized access to business accounts, even if an attacker guesses a password correctly.

Threats from the Inside

Insider threats are becoming a growing problem for small businesses. Employees have access to multiple accounts that contain sensitive information. Some employees may be careless with this information, while others might use it maliciously. Small business owners should have a strong culture of awareness within their organizations. Doing this helps prevent insider attacks caused by ignorance and allows employees to spot if an attacker has compromised, attempted to compromise, or is trying to do so. 

Small businesses should also consider implementing technology to prevent employee theft. Systems like Biometric Time & Attendance systems help track employee time, attendance, location, and activity. It’s a great way to keep tabs on who is where and when they’re supposed to be there, plus what they did during those times. The system can also alert managers about suspicious behavior. Most importantly, it keeps employees safe and allows employers to monitor employee activities.

The Bottom Line: Cybersecurity Is Essential

Small businesses continue to face new challenges and threats. If anything, the attacks are more frequent, and the hackers are better prepared. Business owners must stay vigilant and take steps to defend themselves against these dangers. If you don’t plan, you risk losing customers, money, reputation, and your entire business. Make sure that your company is prepared for today’s threats and adopt a proactive approach to cybersecurity.

What to Do About Cyber Attacks

Businesses should implement policies and procedures to prevent cyberattacks. Policies should include protecting devices and networks, educating employees about cybersecurity, and implementing security measures such as firewalls and antivirus software. In addition, companies should require users to change passwords frequently. Also, they should educate employees regarding how to detect phishing emails and fake websites. Finally, companies should develop contingency plans to respond quickly to possible cyberattacks.

At the Dickstein Associates Agency, we encourage our clients to take a comprehensive approach to protect their business starting with taking preventative measures. While NJ Cyber Insurance is necessary to safeguard their business, we believe using proactive measures to avoid incidents that lead to insurance claims is the best practice. As such, we continue to publish posts on cybersecurity and offer our expertise to help you never file a claim for a ransomware attack or data breach. But if it does, we are ready with financial support and business advice to correct the damage and help with legal and regulatory headaches in the wake of an incident.

About Dickstein Associates Agency

Dickstein Associates Agency has distinguished itself as a leading provider of personal and business insurance in the tri-state area since 1965. We pride ourselves on being advocates for our clients and providing them with quality and affordable coverages. As Trusted Choice™ independent insurance agency, we partner with various national and regional carriers, allowing for flexible coverage for each client’s unique circumstances. For more information on how you can leverage all your insurance to work best for you, and how we can secure the best insurance in the marketplace suited to your specific needs and business objectives, contact us today at (866) 681-8165 or www.dicksteininsurance.com.