Cyber attacks are steadily increasing every day. A report from Small Biz Trend indicates that small businesses are victims of about 43 percent of these cyber attacks.
Most times, it takes about six months before startup founders realize their security has been compromised. The effects of a security breach are disastrous for both startups and bigger companies. However, it hits small businesses too hard.
Insurance carrier Hiscox estimated through its report that cyber attacks cost all sizes of businesses approximately $200,000. Sadly, 60 percent of small businesses that suffer cyber attacks usually shut down within six months of that breach.
Hackers keep getting smarter and improving their toolbox of tactics. Thus, startup founders will need to start thinking of how best to protect their businesses and products from attacks while setting up their companies.
Due to their mostly non-existent or weak security systems, startups expose themselves as big targets for cybercriminals.
So how best can you protect your business from cyber attacks every time?
Read on to discover why you need to safeguard your startup against cyber attacks, the importance of using the data breach cost calculator, major cyber attacks small businesses suffer, and how to protect your firm against them.
Effects of Cyber Attack on Your Startup
The following are some effects of a cyber attack on your startup.
Reputation Damage
A cyber attack on your firm can damage your company’s reputation seriously. It might scare away potential customers that would want to do business with you, seeing as they may believe your internal controls are weak, you’re careless with your data, or an association with you will also affect their reputation.
Damage of Electronic Data
A cyber attack can damage electronic data on your computers. For instance, a virus can render your sales records completely useless, and recreating them will be a time-consuming process involving sifting through old invoices.
To calculate the extent of damage, use a data breach calculator.
Loss of Income
When a cyber attack is launched on your firm, for example, a Denial of Service (DoS), you’ll be forced to shut down your business till the problem is rectified, which usually takes at least two days.
The closure causes you to lose your customers and money.
Extortion Losses
A hacker might steal your sensitive data or your customers and threaten to publish it on the Internet unless you pay a handsome.
Maybe you accidentally downloaded ransomware that locks down your data, rendering it unusable. The cybercriminal might demand a ransom in exchange for a “key” you can use to “unlock” the locked files.
Some Major Cyber Attacks Small Businesses Suffer
1. Phishing
Hackers use fake websites and emails disguised as coming from trusted sources to steal sensitive data during a phishing attack.
Most times, phishing attacks target employees to dupe them into disclosing sensitive company and personal information.
About 90 percent of data breaches suffered by startups are phishing.
Consider using a data breach compensation calculator to protect yourself.
2. Ransomware
As its name implies, this cyber-attack locks down data, an entire server, or an affected computer, making it inaccessible to the user until they pay a ransom.
These ransoms are often paid using cryptocurrency channels like Bitcoin transactions, seeing as it’s more difficult to trace than an online transaction or cash payment.
You’ll need an anti-malware solution and appropriate training to handle any risk that comes with downloading compromised files.
3. Denial of Service (DoS)
A cybercriminal might flood your website with a tremendous amount of traffic, causing your site to shut down for other users. This malicious traffic overload is called Denial of Service (DoS).
When these DoS attacks are happening at many computers simultaneously, it’s known as a Distributed Denial of Service (DDoS) attack.
A DDoS attack is hard to rectify because the perpetrator appears from various IP addresses simultaneously, making it hard for network administrators to determine the primary attack source.
Consider using a cyber insurance calculator to protect your business.
Ways to Secure Small Business Against Cyber Attacks
● Backup and Encryption
One cybersecurity option you must have in your arsenal is cloud backup services. A ransomware attack is disastrous enough to bring your business to a halt by rendering your data encrypted.
If you backed up your business’s data on the cloud, you could quickly recover sufficient information to keep your business running despite the attack.
Don’t forget to encrypt your backups with strong passwords and reliable security tools to keep them safe.
● Outsource Cybersecurity
When you outsource your startup’s security, you enjoy access to dedicated cybersecurity experts.
It opens you to a level of expertise your startup can’t have internally. More so, when you outsource your security to cybersecurity outfits like Triada Networks, it becomes easier to budget for it using their data breach cost calculator.
● Update Your Systems
Cyber attacks are constantly evolving. The perpetrators are steadily coming up with more sophisticated ways to hack into security systems.
Thus, using outdated security systems puts your company at enormous risks. Updating your operating systems and software helps keep cybercriminals away.
Ensure you’ve installed the latest security patches and are always running the latest software versions.
● Assess Risks and Vulnerabilities
When it comes to making sure your startup is secure, risk assessment is vital. A risk assessment helps to identify threat actors and recognized threats to avoid exposure or loss.
Assessing vulnerabilities and risks offers a clear picture of whether you need to improve your security system or not.
Hire a cybersecurity expert to run tests on your folders, websites, drives, and other systems with external access.
Consider getting your company’s cybersecurity audit report using a data calculator.
● Employee Training
Provide cybersecurity training for your employees to help them defend the business and themselves from cyber attacks.
It’d be best to organize periodic training sessions on cybersecurity best practices, so your employees remain security-conscious all the time.
More so, you can discover and strengthen weak links in your business’s cybersecurity.
Ensure that your staff is aware of cyber threats and ways to handle a threat when they detect one.
● Deploy a VPN and Antivirus Software
Antivirus software protects your small business from numerous malware through its various security features. It’s designed to identify new security vulnerabilities when they occur to ensure maximum security.
You can also use VPN to improve cybersecurity and secure your small business from online attacks like snooping, DDoS, and malware.
Summary
Cyber attacks keep increasing both in severity and frequency and are often targeted at startups. That’s why you need a data breach cost calculator to budget for your cybersecurity in your company.
Small businesses usually focus on business operations and sales, failing to establish cybersecurity on time.
Thus, they’re an easy target for cybercriminals. Unlike bigger organizations, startups lack the resources to recover fast from a cyber attack.
Therefore, you need to have a strong cybersecurity measure in place to prevent a devastating attack.
Triada Networks offers the best cybersecurity for small businesses and startups. Check out their services today and let them work with you based on your need.
