When I think of a hacker I picture someone hunched over a desk in a dark room, dressed all in black, trying to breach the security of a large company or government agency. How could it possibly hack a NH small business? That seems.... boring. However, many small businesses make hacking so easy, that it makes the task worthwhile and ultimately costs the business owner their livelihood
Facts on Cyber Security for Small Businesses:
- According to the Federal Communications Commission (FCC), theft of digital information has become the most commonly reported fraud and has surpassed physical theft.
- According to a 2019 CNBC report on cyberattacks, 43% of cyberattacks are aimed at small businesses, which costs them an average of $200,000 according to Insurance Company Hiscox. (This information was updated from the original estimate done when this blog was first published in 2013 at $80,000. It looks like this problem is only growing.)
- Loss of business, reputation, and customer confidence is immeasurable.
5 Tips To Protect Your Small Businesses From Hackers:
- Train employees in cybersecurity
Establish security practices for employees which include the requirement of strong passwords, appropriate internet usage, and penalties for violating such policies. Management should also establish rules for employees handling confidential customer data. Protect information, computers, and networks from cyber attacks
- Keep machines up to date
Keep machines up-to-date with the latest security software, web browser, and operating system updates. Set anti-virus software to run a scan after each update. Ensure all staff members are installing key software updates as soon as available.
- Provide firewall security for your internet connection
A firewall is a program that prevents outsiders from accessing data on a private network. Make sure that it is enabled on every machine including staff that may work from home.
- Create a mobile device plan
Mobile devices can create huge security challenges, especially if they hold confidential information or can access a corporate network. Require users to password-protect each device, encrypt their data, and install security apps to prevent criminals from stealing information while the phone is on a public network. Make sure to have a reporting procedure if mobile equipment is lost or stolen.
- Make backup copies of important business information and data
Be sure to regularly back up data on all computers, including Word documents, spreadsheets, financials, and human resources files. Have this process automated if possible, or at least weekly. Be sure to store the data offsite or in a cloud.
These tips are a great way to lower the chances of your small business being attacked by a hacker, but like anything, it is not perfect. For the unexpected, you can always cross your fingers and hope nothing happens, or you can buy Cyber Liability Insurance.
Why Every Small Business Needs Cyber Liability Insurance:
- Most commercial policies do not cover loss due to cyber liability.
- The cost to your business for having your data breached is in the tens if not hundreds of thousands of dollars. The cost of a cyber-liability policy is a tiny fraction of that.
- The frequency of small businesses being hacked into is increasing every year.
You wouldn't think about not having a smoke detector in your building. Cyber-attacks, though silent, can be just as costly as a fire, if not more so. Take the time to protect yourself and your small business. Contact HPM Insurance today!