Scammers are increasingly targeting small to midsized businesses, which is why it’s important to check up on your cyber hygiene. Cyber hygiene refers to best practices that help keep business systems, data, and accounts safe from cyber threats.
Maintaining strong digital habits matters for businesses of all sizes, because it protects your business and your customers’ personal data. Developing a cyber hygiene routine can increase customer trust, while improving business continuity.
Why Small and Midsized Businesses Are Common Targets
Smaller businesses have less staff and resources, meaning that scammers assume they’re easier to breach. They also take advantage of the growing use of remote work, cloud-based software, and third-party vendors. Every connected device, employee account, or external tool can create another potential entry point for attacks.
Scammers are after the valuable information your business is responsible for. This can include customer information, financial data, login credentials and vendor information.
Common Cybersecurity Risks Businesses Face
Your business may be compromised in a number of ways, including:
Phishing Attacks: Phishing scams are one of the most common threats businesses face. Attackers send emails, texts, or messages pretending to be trusted companies, coworkers, banks, or vendors in an attempt to steal passwords, financial information, or sensitive data.
Weak or Reused Passwords: Using simple passwords or reusing the same password across multiple accounts makes it easier for attackers to gain access. If one account is compromised, reused credentials can allow fraudsters to access your other systems as well.
Malware and Ransomware: Malware is malicious software designed to damage systems or steal data. Ransomware is a type of malware that locks files or systems until a ransom payment is made. These attacks can disrupt operations, delay customer service, and result in financial losses.
Unsecured Wi-Fi or Other Devices: Unprotected devices and poorly secured Wi-Fi networks can give attackers easy access to your systems. Employees working remotely on public Wi-Fi networks may also expose sensitive information if protections are not in place.
Outdated Software: Old software and operating systems may contain known security vulnerabilities that attackers exploit. Failing to install updates leaves you exposed to preventable threats.
Business Email Compromise (BEC): BEC involves attackers impersonating executives, vendors, or employees over email to trick businesses into transferring money or sharing sensitive information. These scams can be convincing, leading to significant losses.
Essential Cyber Hygiene Practices
Implementing these steps can protect your business, employees, customers and vendors from fraud.
Strong Password Management: Use strong, unique passwords and avoid reusing them for different systems. Consider using password manager software, which can store your passwords securely and help you keep track of them. If a password is compromised, change it immediately.
Multi-Factor Authentication (MFA): Multi-factor authentication adds an extra layer of security by requiring users to verify their identity with a second step, such as a code sent to their phone or an authentication app. Even if a password is stolen, MFA can help prevent unauthorized access. MFA should always be enabled on all of your accounts, especially critical ones like email, payroll software and financial platforms.
Software Updates: Software updates often include security fixes designed to close vulnerabilities attackers may exploit. Do an audit of your current software, and replace anything that’s outdated. Enable automatic updates when possible to reduce the risk of forgetting to install a critical update.
Secure Devices and Networks: Install firewalls and antivirus software on your devices. Secure your Wi-Fi networks, and make sure you aren’t using a public network. Remote employees should use a secure VPN when accessing company systems outside the office.
Employee Cybersecurity Awareness: Your employees are your first line of defense. Train employees on safe browsing, email habits, and how to spot a scam attempt. Encourage them to report fraud as soon as possible.
Data Protection and Backup Strategies: Back up business data regularly, and store back ups on a separate device. Limit access to sensitive data such as customer and financial records to personnel that don’t need it.
Implement Safe Remote Work Practices: Educate your employees on the risks of remote work, such as using a public Wi-Fi network without protection. Secure any mobile devices they may use with a firewall and antivirus software. Additionally, establish clear remote work policies to stay consistent and secure.
Create an Incident Response Plan: Every company should have an incident response plan in place before an attack occurs. An incident response plan outlines what steps to take if systems are compromised, data is stolen, or suspicious activity is detected.
A strong plan should include steps to:
- Contain the issue
- Notify the proper personnel
- Change compromised credentials
- Communicate with customers and affected parties as necessary
Remember to test the plan regularly to identify points of weakness.
Building a Security-First Culture
Strong cyber hygiene is an ongoing business practice that requires attention from everyone in the organization. Business leaders play an important role in setting the tone by prioritizing cybersecurity, encouraging accountability, and making security a priority.
Regularly reviewing security policies, updating procedures, and providing employee education can help businesses stay prepared as cyber threats continue to evolve.
If you are a victim of fraud, report it to your bank and to the FTC.
Central Bank offers resources to help protect your business from fraud. Download our Business Security Toolkit today!
