Cybersecurity for
small businesses

A breach in cybersecurity is a costly event for any business. You have to spend money to repair the damage caused by the breach, assign resources and people to analyze your cybersecurity strategies and cover the gap that allowed the attack, and potentially pay a ransom to unlock your data. On top of that, your business can take a hit to its reputation and lose revenue because of it.

Mitigate this by being aware of common cybersecurity pitfalls for small businesses, such as:

• Lack of employee training: Proper employee training is a must. Without thorough training on cybersecurity protocols, like Zero Trust, small business can greatly increase the risk of effective phishing threats.
• Lack of resources: Find a way to allocate proper resources to your cybersecurity by exploring solutions made for small businesses. A significant breach will be more costly than cybersecurity.
• Endpoint vulnerabilities: Endpoint solutions can help you secure the devices tied to your network.
• Insufficient planning: It's vital to know what critical assets need to be protected, identify your weak points, and focus your attention here. Consider working with someone to lead a fake attack on your data

Defending against expensive threats isn't the only benefit to a comprehensive cybersecurity system—other benefits include:

• Customer trust: Prove to your customers that you can protect your data, and they're more likely to stick with you.
• Regulatory compliance: Avoid serious consequences such as fines and legal issues by complying with industry laws and data protection regulations.
• Protect cash flow: Minimize financial losses from ransomware, fraud, or downtime that can quickly drain your resources.
• Business continuity: When your business isn't hit by successful cyberattacks, you can maintain day-to-day operations without setbacks and distractions.

Cybersecurity helps protect small businesses from cyberthreats, or malicious attempts to access, damage, or steal data. While there are many types of cyberthreats, common examples of cyberthreats that small businesses should be aware of include:

• Phishing is a type of attack in which a cybercriminal sends fraudulent messages—primarily emails—in an attempt to trick individuals into revealing sensitive information, such as passwords.
• Data breaches are attacks in which a business's data is stolen or altered without authorization.
• Ransomware is a type of software used in an attack that encrypts a business's data, essentially locking the owner out of it. A demand is then made to the business owner in exchange for decrypting the files.
• Malware is malicious software designed to infiltrate, damage, or gain unauthorized access to a computer system. It can steal sensitive data, disrupt operations, and cause significant financial and reputational damage.

A cyberattack on a small business doesn't just cost it money; it can severely damage the company's reputation, pushing loyal clients or customers away. Businesses don't always survive cyberattacks, either. The damage can be so extensive that it forces companies to close their doors permanently.

In today’s digital landscape, cybersecurity is no longer optional—it’s essential. As cyberthreats grow more sophisticated, organizations must take proactive steps to protect their systems, data, and people. A strong cybersecurity posture starts with foundational practices that reduce vulnerabilities and build resilience across the company. Below are key strategies every business should implement to strengthen its defenses and stay ahead of evolving threats:

• Implement regular software updates. Outdated software is easier for cybercriminals to access. Take advantage of automatic software updates and patch management for your company's systems. This ensures employees won't be responsible for manual updates, lowering the risk of outdated systems becoming a risk.
• Use strong passwords and authentication protocols. Require employees to choose passwords that involve a combination of letters, numbers, and symbols. Stronger passwords are harder to guess, and even if they are at risk, use multi-factor authentication (MFA) to require employees to use their phones or emails to approve the sign-in.
• Train your employees on cybersecurity best practices. Establish a cybersecurity awareness training program for your workers and incorporate topics like cloud security. Use these sessions to collect feedback and use it to strengthen your defenses.
• Monitor and update your practices. Cybersecurity is always evolving because cyberthreats are always evolving. Last year's system may have worked great, but it could be a hole in your defenses now. Set a regular schedule to conduct risk assessments and make updates based on changes to common threats.

Cybersecurity isn’t just for large enterprises. Small businesses are increasingly targeted by cyberthreats, making it essential to have a robust plan in place. A well-designed cybersecurity strategy helps identify vulnerabilities, prevent data breaches, and ensure business continuity. To develop a comprehensive cybersecurity plan for your small business, you can take these actions:

• Conduct a risk assessment. Start by identifying potential threats to your data and systems. Evaluate how each risk could impact your business and prioritize them accordingly. Pinpoint existing security gaps and take steps to close them.
• Protect your data. Encrypt your company's sensitive data to ensure only authorized personnel can access it. Maintain up-to-date backups both on-site and in the cloud to protect against ransomware and other data loss scenarios and update these backups regularly.
• Empower your employees. Educate employees on cybersecurity best practices and how to recognize threats like phishing and social engineering. Share the Microsoft Digital Defense Report and other cybersecurity resources with your workers to keep them informed. Remain accessible to help your employees, be proactive, and address cybersecurity issues before they put your company at risk.
• Create a training and awareness program. Develop a cybersecurity training program using engaging formats like PowerPoint presentations, videos, and interactive modules. Reinforce key messages regularly to foster a culture of digital safety in the workplace.

How you respond after a cyberattack is just as important as your defenses. Immediately quarantine any compromised systems, investigate the incident, determine who's responsible, and notify any stakeholders. Learn from the incident, and account for what you did well and what you could've improved.

You should know how you're going to respond to an incident before it occurs. Take the time to create an incident response plan that covers what to do after different attacks and regularly review and update it. Clearly outline who is responsible for each step, and include post-incident activities, such as retraining for affected employees.

Look to real-world examples of small businesses that have experienced cyberattacks to better understand how others have responded—what worked, what didn’t, and what you can apply to your own cybersecurity strategy.

Consider the success story of the manager of a small accounting firm who received a ransomware demand on their computer screen. The manager contacted the company's IT person, who shut down the business's network, and an investigation revealed that cybercriminals had spread a virus across the company's data. Using data backups stored off-site, the company recovered quickly, without paying the ransom.

Avoid a cybersecurity failure like the one experienced by a car dealership in Kansas. Hackers broke into the business's network to steal bank account information. This information enabled the cybercriminals to add nine fake employees to the company's payroll. Those fake employees were paid thousands of dollars before the company discovered the issue.

These stories highlight just how different the outcomes of a cyberattack can be—and how planning and preparation makes all the difference. By exploring more real-world examples from businesses like yours, you can learn practical lessons to strengthen your own cybersecurity plan.

It's always better to be prepared for a cyberattack, even if the attack never comes. For many small businesses, a cloud product or cybersecurity solution is required to sufficiently protect the organization from cyberthreats.

Upgrade your company's cybersecurity with Microsoft Defender for Business, a cybersecurity solution designed specifically for small and medium-sized businesses with up to 300 employees. Receive AI-powered ransomware protection that's easy to use and cost-effective.