Small Business Cybersecurity: 10 Tips to Building a Strong Defence for Australian SMEs

Technology has revolutionised how companies work and operate. For the past years, technology has helped organisations over the globe to automate their operations and optimise their campaign to connect with their customers. However, this continuous evolvement and reliance on technology are cyber threats.

Many companies, especially SMEs, experience cyberattacks. As per Accenture's Cost of Cybercrime Study, 43% of cyberattacks target small businesses, yet merely 14% are equipped to safeguard themselves.

So, if you are one of them, this article is for you. We will provide valuable insights and practical tips in small business cybersecurity tips.

What is Cybersecurity, and Why Do Small Businesses Need it?

Before learning how to protect your small business from cyber-attacks, it is vital to know cybersecurity fundamentals. Basically, cybersecurity is protecting computer systems, networks, data, and digital assets from unauthorised access, cyberattacks, damage, and other threats. It usually involves strategies and tools to ensure that all digital and technological assets are safe from cybercriminals who might try to steal information, cause damage, or disrupt operations.

In small businesses, cybersecurity is essential for the following reasons:

• Data Protection. Small companies often collect and store sensitive customer information, like names, addresses, and payment details. Without proper cybersecurity, this data could be stolen and misused, harming customers and businesses.
• Financial Loss. Cyberattacks can lead to financial losses due to theft, fraud, or the cost of recovering from an attack. This can affect the business’ revenue, operation, and overall future.
• Reputation Damage. A cyber incident can damage a small business's reputation. Customers may lose trust if their data is compromised; negative publicity could drive them away.
• Legal and Regulatory Compliance. Small businesses might be subject to data protection and privacy regulations depending on the industry. Failing to implement cybersecurity measures could result in legal penalties.
• Operational Disruption. Cyberattacks can disrupt a small business's operations, leading to downtime and lost productivity. This can be particularly damaging when every minute of operation counts.

What are the Common Cybersecurity Threats for Small Businesses?

Knowing the common cybersecurity threats is likewise essential to fully mitigate their effects. And to help you, here are some common cybersecurity threats faced by small businesses:

• Phishing Attacks. This cyber security threat is one of the most significant contributors to data breaches. This usually involves tricking employees or stakeholders into revealing sensitive information about the business. They often come through emails that appear to be from trusted sources.
• Ransomware Attacks. According to Verizon Report, ransomware contributes to 25% of data breaches. It encrypts a victim's data and demands payment (ransom) for its release.
• Malware Infections. The 2020 State of Small Business Cybersecurity report by the National Cyber Security Alliance found that 29% of small businesses experienced a malware attack. This attack usually includes viruses, worms, and trojans that can compromise systems and steal information.
• Insider Threats. This cybersecurity threat is probably one of the highest causes of cybersecurity threats. It usually arises from employees, contractors, or partners with authorised access who misuse their privileges to steal data or harm the organisation. According to the 2022 Verizon Data Breach Investigations Report, 28% of breaches involved internal actors.
• Unpatched Software. Failing to update software with security patches leaves vulnerabilities open for exploitation.
• Distributed Denial of Service (DDoS) Attacks. DDoS attacks overload a network or website with traffic, rendering it inaccessible to users. According to Statista, in 2020, 45% of small businesses in the U.S. experienced a DDoS attack.
• Lack of Employee Training. Insufficient cybersecurity awareness among employees can lead to unintentional breaches.

10 Cybersecurity Tips to Help You Protect Your Small Business from Cyberthreats

1. Implement Strong Password Policies

A strong password bolsters cybersecurity as a critical barrier against unauthorised access and potential data breaches. Passwords are the first line of defence in stopping unauthorised access to your systems, data, or sensitive information. With strong passwords, the organisation can ensure that only authorised users can access crucial digital access.

Likewise, here’s a step-by-step guide on how to establish and enforce strong password practices:

• Develop a password policy. This should outline the company’s expectation of a strong password, including length, complexity, and password change frequency.
• Educate Conduct cybersecurity training sessions to educate employees. Tackle the importance of strong passwords and make them aware of the company's password policy.
• Disallow Password Reuse. This prevents employees from cycling through a small set of passwords, which can compromise security.
• Provide Password Management Tools. Offer password management tools that help employees generate and store complex passwords securely.
• Regularly Audit and Monitor. Conduct sporadic cyber audits with your employees to guarantee compliance with the password policy. Monitor for any suspicious activity related to password changes or unauthorised access attempts.
• Implement Consequences for Non-Compliance. Communicate the consequences of not adhering to the password policy. This can range from warnings to temporary account suspension in case of repeated violations.
• Lead by Example. This demonstrates the importance of the policy to the entire organisation.

2. Update Software Regularly

One of the most essential small business cybersecurity tips is software updates. Today, most cyber threats evolve simultaneously with technology. Software update often includes vital security patches that address these vulnerabilities and malicious actors.

Moreover, updates not only address security issues but also improve the performance and stability of the software. Keeping your software updated ensures optimal functionality and minimises crashes or errors.

Small companies must enable automatic updates for their operating system, applications, and security software to keep software or system updated. This ensures that critical updates are installed without requiring manual intervention. On the other hand, software that doesn't support automatic updates makes it a habit to check for updates regularly manually.

3. Use Multi-Factor Authentication (MFA)

Multi-Factor Authentication (MFA) is a security mechanism designed to enhance the protection of digital accounts and systems by requiring users to provide multiple verification forms before gaining access. MFA adds a layer of security beyond the traditional username and password combination. This approach mitigates the risks associated with stolen or compromised credentials, making unauthorised access significantly more difficult, especially for small businesses.

Here are some MFA of your choice that are good for small businesses.

• Time-Based One-Time Password (TOTP). These are apps to generate time-sensitive codes on users' smartphones.
• SMS or email. Small businesses can use email or SMS one-time codes to users' registered phone numbers or email addresses.
• Push notification. This MFA sends alerts to users' smartphones when they attempt to log in. Users can confirm the login attempt with a single tap.

4. Secure Your Wi-Fi Networks

Securing Wi-Fi is of paramount importance for small businesses due to several critical reasons. First, it prevents unauthorised access to your business's sensitive data. Without proper security measures, cybercriminals could intercept data transmitted over the network, potentially leading to data breaches and information theft.

Here are some small business cybersecurity tips for Wi-Fi networks.

• Set up secure, hidden Wi-Fi networks with strong passwords to prevent unauthorised access.
• Enable WPA3 or WPA2 with AES encryption for your Wi-Fi network. Avoid using older, less secure encryption methods like WEP.
• Rename your Wi-Fi network (SSID) to something unique that doesn't reveal your business's name or location.
• Set up a isolated guest network for visitors. This isolates guest traffic from your main business network, reducing the risk of unauthorised access.
• Enable your router's built-in firewall to filter incoming and outgoing network traffic.
• Use network monitoring tools to detect and analyse any unusual activity on your Wi-Fi network.

5. Educate Employees

Educating employees in cybersecurity is of paramount importance due to several critical reasons. Employees are always the first touch point of any cyber threat. They handle and access sensitive customer and company data. Likewise, educating your employees about data protection is essential to ensure that this information remains confidential and isn't exposed to unauthorised individuals.

Similarly, cyber attackers use phishing emails and other tactics to trick employees into giving sensitive information or clicking on malicious links. Education helps employees recognise these threats and respond appropriately.

By raising awareness and promoting responsible online behaviour, businesses can significantly enhance their overall cybersecurity posture and resilience against cyber threats.

6. Backup Data Regularly

Backing up data plays a crucial role in enhancing cybersecurity for small businesses. When data access is affected due to cyber incidents, business operations can come to a halt. This can be severe for small businesses with limited resources.

However, having backups ensures you can restore your data and system anytime. This enables the organisation to recover faster, minimising downtime and associated costs. Small businesses can significantly strengthen their cybersecurity posture by implementing a robust data backup strategy. This will ensure their valuable data's availability, integrity, and recovery in the face of cyber threats and other disruptions.

Thus, small businesses should regularly create data backups and store them in a secure offline location or cloud storage.

7. Limit Access

One of the easiest yet essential small business cybersecurity tips is limiting access. Limited access is a fundamental principle in cybersecurity that emphasises controlling and restricting the level of access that individuals or entities have to sensitive systems, data, and resources. Through this, organisations can reduce the risk of insider threats and actions taken by employees, stakeholders, partners, etc.

As such, small business owners must only grant access only to necessary personnel and use the principle of least privilege to minimise potential damage from insider threats.

8. Use Firewall and Intrusion Detection Systems

Other crucial small business cybersecurity tips are setting up firewalls and other intrusion detection systems. Firewalls are a great first line of defence against unauthorised access and cyber threats. They monitor incoming and outgoing network traffic to identify and block potentially malicious or unauthorised activities.

In addition, firewalls enforce access control policies, allowing administrators to specify which devices, users, or applications can access the network. This prevents unauthorised entities from gaining entry.

9. Regular Security Assessments

Small businesses must conduct frequent security assessments and audits to identify and address vulnerabilities promptly. Here are some guides for small businesses:

• Outline the goals of your cybersecurity assessment. Identify the assets, systems, and processes you want to evaluate for security vulnerabilities.
• Create a team responsible for conducting the assessment. This may include IT staff, security experts, and relevant business stakeholders.
• Compile a list of digital and physical assets your business relies on. This can include hardware, software, data, and devices.
• Determine your assessment methods. This can include vulnerability scanning, penetration testing, security audits, and policy reviews.
• Evaluate the effectiveness of your employee cybersecurity training. Owners can assess their understanding of security practices and ability to identify and respond to threats.
• Analyse assessment results to prioritise vulnerabilities and weaknesses.
• Develop a list of recommendations. This should include addressing identified vulnerabilities.
• Schedule periodic assessments. This will help ensure security improvements are implemented, and new vulnerabilities promptly addressed.
• Consider engaging third-party cybersecurity experts to conduct assessments.

By following these steps and regularly conducting security assessments, small businesses can proactively identify and address vulnerabilities, mitigate risks, and enhance their overall cybersecurity posture.

10. Create an Incident Response Plan

An Incident Response Plan (IRP) is a structured and predefined set of guidelines, procedures, and actions that an organisation follows during a cybersecurity incident or breach. The primary use of an IRP is to efficiently mitigate the impact of a cyber threat or incident, minimise downtime, and ensure a swift and organised response to protect sensitive data, systems, and the overall integrity of the organisation.

As such, small businesses must develop a plan outlining steps to take in case of a cyber incident to minimise its impact and ensure a swift recovery. For small businesses, an incident response plan should include the following:

• The purpose, scope, and people are included in the response plan.
• List of incident categories
• Identification such as tools to use and to whom the report should be submitted.
• Incident handling process including containment, eradication, and recovery.
• People involved, including internal employees and external stakeholders like customers, partners, etc., that were affected by the cyber incident.
• Business continuity measures to ensure that operation is ongoing. This can include data backup, cyber-insurance, etc.
• Incident Review that involves a post-incident review to analyse the response process after resolving the incident.

Conclusion

In conclusion, safeguarding the digital landscape of Australian SMEs through robust cybersecurity practices is not merely an option but a vital necessity in today's interconnected world. As discussed in this article, implementing these ten small business cybersecurity tips forms a comprehensive strategy to build a strong defence against the evolving threat landscape.

Empower your Australian SME with the proactive cybersecurity measures necessary to thrive in today's digital age. Our experienced team is equipped to navigate the complexities of the digital landscape, offering advanced strategies to fortify your defences and ensure the resilience of your operations. Check out our cybersecurity services!

Contact SOMA Technology Group today and take a crucial step toward your business's secure and prosperous future.