Cyber security for small business

‘Don’t open it!’. This warning should ring out loud in your head whenever you receive an email or text from someone you don’t know. Or, worse, if it appears to be from someone you know but looks slightly odd.

The main dangers posed by cyber crime come from illegal hacking into business computers, mobile phones and technology systems. All too often, this can start with an innocent-looking digital message.

The scale of cyber security threats is massive. And that now includes small business.

The National Cyber Security Centre gives a price on tradespeople of cyber crime. It estimates that small business has a one in two chance of suffering from a cyber security breach. The cost could be around £1,400 each time.

Small business cyber security helps tradespeople to protect their business reputation. There are also legal obligations to protect data that trades hold about their customers.

With cyber crime on the rise, the best form of protection is prevention. It’s also worth having cyber security insurance in case anything goes wrong.

What is small business cyber security?

Cyber security for small business is a crucial way to protect against cyber crime. Protection is needed now more than ever. That’s because the types of cyber attacks small business faces are increasing.

Cyber security aims to protect all types of computers and smart devices. This includes:

• Office computers
• Smartphones
• Laptops
• Tablets

Protection means stopping unauthorised access to devices used by small business. This prevents theft or damage to the information held on these devices.

It’s important because just about every small business nowadays relies very heavily on technology to do business. This includes day-to-day basics like:

• Running the business
• Contacting customers
• Online banking
• Emails and websites
• Social media

What are potential cyber security threats for small business?

Most cyber security threats are ways to hack into your computer systems. The main types include:

Malware

This is ‘malicious software’ used to infect a computer. Hackers have different ways of breaching cyber security. The malware can then quickly spread across connected computers. Sensitive information can be compromised or stolen. Computers often run more slowly.

Ransomware

This is a type of malware where the business is held to ransom. The malware can lock the computer and it won’t be ‘released’ until a ransom is paid. Often, the computer is still unusable even after payment has been made.

Phishing

This tricks you into giving personal information and data by sending a fake email. It could ask for login details and bank details. Phishing works by getting you to open an email you think is from a recognised or trusted source. A virus can then attack the computer.

Smishing

This is similar to phishing but takes place via text messages on mobile phones.

Giving out sensitive information without meaning to

This is when someone in a business unintentionally shares sensitive or confidential information, perhaps about a customer.

What is cyber security insurance?

Trade businesses increasingly look to cyber security insurance. It provides various forms of compensation if they fall victim to cyber crime. Cyber insurance is a tax-deductible business expense.

Cyber security insurance covers tradespeople from:

• Theft of your money through online attacks
• Theft of data held on your computers, mobiles and smartphones
• Damage to your computers, mobiles and smartphones, for example, by locking them

The Association of British Insurers says the main protection offered by cyber security insurance should cover:

• Breaches of security and privacy
• Cyber extortion, such as ransomware attacks
• Damage, loss or misuse of things you hold on computers, such as business information and photos
• Interruption to running your business because you can’t use your computers and technology
• If your business faces liability claims. These could be for libel, slander and defamation from things put on your website or social media

Most insurance companies offer cyber security insurance. If your business isn’t already covered, give your insurer a call and ask what they can do to help.

You can also find plenty of specialist cyber security insurance providers if you do an online search.

What is a cyber security policy for small business?

A cyber security policy helps tradespeople protect against cyber crime. A policy should explain the risks and show how to prevent them.

Regular back-up

Make sure all of your data is held on a second device. This could be on a remote backup device. Ideally, data should be held in a different location from your main computers. Cloud-based backup is increasingly popular.

Password protection

This is so important to prevent illegal access to business devices. Passwords should be:

• Long enough – usually at least eight characters
• A mix of letters, capital letters, numbers and characters (dashes, exclamation marks)
• Random, rather than actual words (avoid names or memorable dates)
• Changed regularly

Malware protection

• Install antivirus software and update it regularly
• Install a ‘firewall’ on your computers
• Don’t download software or apps unless you are sure they come from a reliable source

Phishing and smishing protection

• Make sure you and your staff know how to spot a cyber attack. Fake emails are often badly written. Check the email address of the sender – they usually come from overseas. They usually ask you to respond quickly as the message is urgent
• Make sure staff using work computers are only given access to the things they need and limit access to sensitive areas (like your accounts)

The government’s National Cyber Security Centre offers a useful free cyber security action plan.

Key takeaways

• Cyber security threats for small business are increasing
• Cyber attacks from hackers are both sophisticated and often very crude
• Small business cyber security can protect tradespeople
• Costly cyber attacks that could be hugely damaging to your work
• Cyber security insurance provides financial protection to small business
• Insurance covers the main types of cyber attacks so tradespeople can quickly recover and continue operating
• A data protection policy for small business sets out important rules to reduce the risk of cyber crime
• Policies should be shared with anyone using work computers, laptops and mobiles

Content disclaimer: This content has been created for general information purposes and should not be taken as formal advice. Read our full disclaimer here.