Cybersecurity threats are a growing concern for small businesses.

With increasing reliance on digital tools, small businesses are prime targets for cybercriminals. This guide provides a common-sense approach to cybersecurity, including actionable steps and resources to help small business leaders protect their organizations.

The Cybersecurity Problem for Small Businesses

Many small businesses mistakenly believe they are too insignificant to be targeted by cybercriminals. However, in recent years, more than half of cyber insurance claims were from small businesses, and most small businesses that suffer a cyberattack go out of business within a year of the attack. A lack of cybersecurity measures can lead to financial losses, reputational damage, and even legal liabilities.

Why Small Businesses Are More Vulnerable

Small businesses often lack the resources, expertise, and infrastructure that larger enterprises have to protect against cyber threats. Several factors contribute to their increased vulnerability:

• Limited IT Budgets – Many small businesses operate with constrained budgets, making it difficult to invest in robust cybersecurity solutions.
• Lack of Dedicated Cybersecurity Personnel – Unlike large corporations with specialized security teams, small businesses often rely on general IT staff or third-party vendors who may not be focused solely on security.
• Lower Awareness and Training – Employees in small businesses may not receive regular cybersecurity training, making them more susceptible to phishing and social engineering attacks.
• Use of Outdated or Insecure Technology – Older systems and software that lack updates are common in small businesses, providing attackers with easy entry points.
• Third-Party Risks – Many small businesses depend on third-party vendors for IT services, increasing exposure to security vulnerabilities in supply chains.
• False Sense of Security – Some small business owners believe they are too small to be targeted, leading to complacency in implementing cybersecurity best practices.

Understanding these vulnerabilities is the first step toward strengthening security defenses and mitigating potential threats.

The Pillars of Small Business Cybersecurity

A strong cybersecurity strategy consists of three essential pillars:

1. Third-Party Security Assessment – Evaluate security controls and compliance to identify gaps. What should a business start or stop doing?
2. Penetration Testing & Vulnerability Scanning – Test existing security measures for effectiveness. Do the security controls operate as expected?
3. End-Point Monitoring – Use real-time monitoring to detect suspicious activity. At a minimum, virus protection should be active.

Common Cybersecurity Threats

Small businesses are susceptible to various cyber threats, including:

• Phishing Attacks – Deceptive emails designed to steal credentials or distribute malware.
• Ransomware – Malicious software that encrypts data and demands payment for its release.
• Insider Threats – Employees or contractors who accidentally or intentionally compromise security.
• Unpatched Systems – Vulnerabilities left open due to outdated software.

Practical Cybersecurity Measures

1. Develop and Practice an Incident Response Plan

• Document a step-by-step response plan for cyber incidents.
• Conduct regular incident response training and simulations to prepare employees.

2. Conduct Regular Assessments, Vulnerability Scanning and Penetration Testing

• Identify weaknesses before attackers do.
• Install and monitor vulnerability scanning tools, and use third-party cybersecurity assessments and testing to gain expert insights.

3. Keep Software and Systems Updated

• Implement automatic updates for operating systems and applications.
• Regularly audit and apply security patches.

4. Train Employees on Cybersecurity Best Practices

• Conduct cybersecurity training at regular intervals and when onboarding new employees. 
• Conduct ongoing phishing awareness training.
• Establish clear policies on password management.

5. Monitor Networks for Suspicious Activity

• Use Security Information and Event Management (SIEM) tools.
• Maintain logs and regularly review them for anomalies.

6. Regularly Audit Data Access and User Privileges

• Review Microsoft Active Directory to ensure that only authorized users have access to the network.
• Remove inactive or former employee accounts.
• Segment data and limit privileges to only the data an employee needs to do their job.

7. Backup Data and Implement a Disaster Recovery Plan

• Follow the 3-2-1 backup rule: 3 copies, 2 different storage types, 1 offsite.
• Regularly test backups to ensure recoverability.
• Know where your data is stored.

8. Understand Compliance and Regulatory Requirements

• Follow security frameworks like NIST, CIS Controls, and ISO 27001 where relevant and proportional.
• Understand and adhere to cybersecurity and privacy laws (e.g., GDPR, CCPA) applicable to the business.

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Looking for more information?  Check out this comprehensive Cybersecurity Resource Guide.

Conclusion

Cybersecurity is not a one-size-fits-all solution, and small businesses have the unique advantage of being more agile and adaptable than larger corporations. Unlike enterprises bound by rigid bureaucratic processes, small businesses can swiftly implement and refine security measures tailored to their specific needs. This flexibility allows them to adopt a proactive cybersecurity posture, responding quickly to new threats and leveraging innovative solutions that suit their operations.

By implementing practical security measures, investing in employee training, and leveraging available resources, small business leaders can establish a strong cybersecurity foundation. Embracing a customized approach to cybersecurity not only minimizes risks but also enhances customer trust, protects business continuity, and fosters long-term growth in an increasingly digital world.

Matthew Opsitnick is a Computer Engineer and Project Manager at OnCall Cyber, a company dedicated to cybersecurity assistance. With six years of experience as a developer, he brings a strong technical background to his work in managing and implementing cybersecurity solutions. Matt can be reached at matt.opsitnick@gmail.com.

Tim is Executive Vice President and General Counsel, Technology Concepts & Design, Inc. (TCDI). His consulting practice focuses on cybersecurity, data privacy, electronic discovery, and computer forensics. Tim is a strong advocate for small business and has served as the immediate past chair for COSE and also serves on the Board of Trustees, the National Small Business Association (NSBA). Tim can be reached at tim@opsitnick.com.