Data privacy often isn’t a top priority for many small businesses. They think that since they’re just a small organization, their data isn’t worth much and won’t be targeted by scammers and cybercriminals.
However, this is a huge misconception. In fact, according to Verizon, SMBs are four times more likely to be victims of data breaches compared to larger organizations.
Fortunately, protecting data and privacy is totally doable—even for smaller businesses. By breaking cybersecurity down into a checklist with easy steps, small businesses can protect their privacy even with fewer resources.
Why Are Small Businesses at Risk of Cyberattacks?
Firstly, it’s important to understand: why do cyberattacks often target small businesses?
- Easier to Attack
Their defenses aren’t as robust as those of larger organizations. This is either because they have less capacity for cybersecurity measures, or mistakenly think they’re not at risk. Often a combination of both.
Hackers can hit dozens, if not hundreds, of small businesses with the same phishing or ransomware campaign.
- They Still Have Valuable Data
The amount of money small businesses have in their online accounts is not insignificant.
Data such as customer and employee information, contact lists, and transaction histories can also be sold to data brokers and other cybercriminals.
Even if the profits from each successful attack are small, they can add up if many businesses are breached.
- They Can Serve as a Gateway to Larger Companies
Some attackers see small businesses as a stepping stone to make attacking larger organizations easier.
Business identity theft on a small restaurant can, for example, give attackers information on a larger food supplier.
10 Steps for Small Businesses to Protect Their Data
So, how can small businesses start protecting their data better? With the steps below, they can put their privacy at far less risk and have the peace of mind to focus on growing the business.
- Know What Data You Have
Start by understanding what kind of data you have. Typically, a small business might have:
- Employee login and personal credentials.
- Email and social media accounts.
- Customer information.
- Payment details and transaction histories.
- Supplier or business partner contracts and contact information.
Then, where do you store these things? As local files on your computer? On an external drive? In a cloud service like Google Drive? Do you store them in multiple places?
Once you map out your data, you’ll know where the risks are.
- Have Strong Passwords and Multi-Factor Authentication
Easy-to-guess passwords are an issue for any organization. Consistent reminders and education about password and authentication policies should be the easiest preventive measure.
Ask employees and clients to change their passwords if the password does not include variation between uppercase and lowercase letters, does not contain special symbols or numbers, or does not have at least 12 characters.
Additionally, enable MFA on all accounts to protect your data even if the passwords get breached.
- Limit Who Can Access Data
Speaking of employees, not everyone in your business needs access to all your information.
For example, your waiter needs the Wi-Fi password so they can give it to customers who ask for it. However, they probably don’t need access to the email you use to contact suppliers.
More people having access to a piece of data than necessary means more avenues for a data leak to occur.
- Train Your Employees
All employees should receive at least basic cybersecurity training. After all, human error is still one of the leading causes of data breaches.
Even the basics can go a long way:
- Do not access work accounts on public Wi-Fi.
- Know how to spot phishing emails.
- Report unusual activity immediately.
- Keep Software Up to Date
Hackers typically go after devices with outdated software. They contain well-known security holes that can be easily exploited.
Because of this, ensure all your devices’ operating systems and apps are always updated to the latest versions. Most updates contain security patches that keep the apps robust.
If possible, turn on automatic updates for all devices.
- Set a Data Retention Policy
The more data you have, the greater the risk, so don’t keep data longer than necessary. Decide how long to keep different types of information and when to delete it safely.
You may, for example, keep customer purchase records for up to five years and purge old website cookies every month.
- Do Regular Privacy and Data Audits
Check your systems, policies, training, and vendor agreements regularly. This ensures that:
- Your apps and devices are up to date.
- Your staff still knows how to be safe online.
- You’re still dealing with trustworthy business partners.
Consider looking up your business on search engines as well. After all, employees or clients may leave traces of information across marketing lists, directories, and third-party services.
If you find information about your business in spaces where you don’t want it to be, consider using services such as Incogni for data removal.
- Be Careful with Third-Party Services
If you use third-party apps and services for, say, online payments, website creation, marketing, or file storage, then choose wisely.
Before committing to using any service, read their security measures and privacy policies. Do they follow legal guidelines? Do they clearly state who’s responsible for what?
Either way, regularly monitor and limit what kind of data you share with them.
- Back Up Your Data
Data loss can completely cripple a small business. Always back up crucial information in multiple places so you still have access to it in case it gets lost.
For example, store critical files on a local computer, upload them to cloud services, and keep a physical backup.
- Stay Compliant with Laws
Ensure that all your practices comply with all the regulations that apply to you. After all, breaking these laws can be incredibly costly due to fines. These laws also evolve regularly, so stay updated.
Conclusion
Many of these steps are easy to implement, even for small businesses with limited budgets. Many of these can be done within a day or two and will protect the business for years to come.
