Why Small Businesses Are Finally Taking Data Security Seriously

Over time, small businesses have been increasingly being targeted by cyberattacks. For years, many of them operated under the misconception that they were too small or irrelevant to attract hackers. However, with the rise of digital threats, particularly in the wake of the pandemic, these businesses are realising the need to take data security seriously. 

Small businesses are no longer safe from cybercrime. This shift is leading to a greater focus on data security awareness, robust cybersecurity strategies and improved employee training.

Small Businesses are Anything But Safe From Cyber Attacks

Contrary to popular belief, small businesses are not safe from cyberattacks; in fact, they are prime targets. A staggering 43% of cyberattacks now target small and medium-sized businesses (SMBs). Unfortunately, only around 14% of these businesses are ready to protect themselves. 

In 2020 alone, small businesses faced over 700,000 attacks, causing $2.8 billion in damages. Cyberattacks on small businesses can take various forms, including phishing, ransomware and insider threats. 

For instance, nearly half of all minor business data breaches result from internal mistakes or malicious insider actions. With the average cost of a data breach soaring and 70% of breaches motivated by financial gain, small businesses can’t afford to ignore cybersecurity.​

Moreover, the financial impact on small businesses is often severe. Over half of the businesses that fall victim to a ransomware attack pay the ransom. Worse still, 75% of small businesses that experience a cyberattack end up bankrupt shortly afterwards. These businesses are also disproportionately affected by phishing and ransomware attacks, which make up the majority of the threats they face​

More Small Businesses Are Now Subject to GDPR Regulations

One reason small businesses are focusing more on data security is that they’re now collecting and processing more personal data than ever before. This means many are subject to regulations like the General Data Protection Regulation (GDPR). 

Although GDPR was initially aimed at larger enterprises, its rules apply to any business that handles the personal data of European Union citizens, regardless of the company’s size. As more small businesses expand globally or use online platforms, they’re increasingly handling customer data and must comply with GDPR.

GDPR imposes strict rules on how businesses collect, store, and use data. This regulation mandates that businesses take appropriate security measures, train their staff on data protection, and ensure that breaches are reported within 72 hours. 

Unable to comply can lead to severe fines, which can devastate small businesses. Companies are now investing in GDPR training for employees to ensure that their teams understand the importance of safeguarding customer data. This training helps employees recognise potential threats and avoid risky behaviours, which are often the leading causes of data breaches​.

Key Data Security Measures Being Adopted by Small Businesses

As awareness around cyber threats grows, small businesses are adopting several key data security measures. These strategies are helping them build more robust defences against the myriad of cyber threats they face today. Here are the top security practices being implemented:

1. Multi-Factor Authentication (MFA): By mandating various forms of identification (such as a password and mobile verification), MFA provides an extra layer of security, restraining unauthorised access for cybercriminals.
2. Encryption of Sensitive Data: This measure ensures that all sensitive customer and business data is encrypted, meaning that even if it’s intercepted, hackers cannot easily read or exploit it​.
3. Firewalls and Anti-Malware Software: Firewalls act as a first line of defence, blocking unauthorised access to a business’s network, while anti-malware software scans and removes malicious programs that could compromise data​.
4. Regular Software Updates: Regularly updating software ensures that known vulnerabilities are patched, reducing the risk of attackers exploiting outdated systems​.
5. Employee Training and Data Security Awareness: Educating employees on how to identify phishing attempts, refrain from clicking on suspicious links, and secure their devices helps lower the risk of internal breaches due to human error.
6. Regular Data Backups: Small businesses are increasingly backing up data regularly, ensuring that in case of a ransomware attack or other disaster, they can quickly recover lost information without paying the ransom​.
7. Intrusion Detection Systems (IDS) monitor network traffic and alert businesses to suspicious activities, allowing them to respond to unauthorised access attempts before significant damage is done​.
8. Limiting Access: By implementing role-based access controls, businesses can limit sensitive data access only to authorised personnel, minimising the potential for insider threats or accidental leaks​.
9. Incident Response Plans: Having a structured plan for responding to data breaches helps small businesses act swiftly, reducing downtime and limiting damage caused by a cyberattack​.
10. Vulnerability Assessments and Penetration Testing: Regular testing of the business’s network for vulnerabilities helps identify weak spots, allowing proactive measures to be taken before attackers can exploit them. 

Final Thoughts

Cybersecurity is no longer just a concern for large enterprises. Small businesses, with their often limited security measures, are prime targets for hackers. The reputational and financial repercussions of a breach can be catastrophic. 

However, by adopting more robust security practices, ensuring GDPR compliance and increasing data security awareness among employees, small businesses can drastically reduce their risk. As more businesses recognise the threats they face and the data protection regulations they must follow, they’re finally taking cybersecurity seriously—and not a moment too soon.