Running a small business means managing many moving parts, from client relationships and payroll to invoices and day-to-day operations. Cybersecurity might not always be top of mind, but protecting your business information is an important part of keeping everything running smoothly.
You don't need a dedicated IT department to take cybersecurity seriously. A few practical habits can help reduce the risk of fraud, data breaches and disruptions to your business.
For example, a fraudulent email could convince you to send money to the wrong account. A compromised password could give someone access to your accounting software. And a ransomware attack could prevent you from accessing important business files.
The good news is that you can take steps to reduce these risks. Here's where to start.
Cybercriminals don't only target large corporations. Small businesses can be attractive targets because they handle money, store valuable information and may have fewer security measures in place.
A cyber incident can affect more than your technology. It can lead to financial losses, interrupt your operations, expose sensitive information and damage relationships with customers or suppliers.
Depending on the situation, your business could face:
Taking a few preventative steps now can help you avoid some of the cost and disruption that come with a security incident.
You don't have to tackle everything at once. Start with these seven steps and build better security habits over time.
Reusing passwords across multiple accounts can put your business at risk. If one account is compromised, other accounts using the same password could be vulnerable too.
Use a long, unique password for every business account. A password manager can help you generate and store passwords securely, so your team doesn't have to remember them all. Tools like LastPass or 1Password generate and store strong passwords securely.
Make sure your business email, accounting software, banking services and other important accounts have strong, unique passwords.
Multi-factor authentication (MFA) adds another layer of protection when you sign in. Besides your password, you'll need to verify your identity using another method.
Enable MFA wherever it's available, especially for email, accounting software, banking and payroll platforms. An authenticator app or security key is generally preferable to a code sent by text message when those options are available.
MFA doesn't guarantee an account can't be compromised, but it makes stolen passwords less useful to attackers.
Phishing scams often look like legitimate messages from banks, suppliers, colleagues or software providers. They may ask you to click a link, open an attachment, share login details or make an urgent payment.
Before responding, look for warning signs such as:
If an email asks you to transfer money or update banking details, verify the request using a trusted phone number or contact method you already have on file. Don't rely on the contact information provided in the suspicious message.
Software updates often include security fixes that address known vulnerabilities. Delaying updates can leave your devices and business accounts exposed to avoidable risks.
Turn on automatic updates where appropriate, and keep computers, phones, browsers, accounting applications and security software current.
If you use cloud-based business tools, review your account security settings and make sure access is limited to the people who need it.
Think about the information your business collects and where it's stored. Customer details, employee records, payroll information and financial documents should be accessible only to authorized people.
A few good habits can help:
If your team works remotely, make sure everyone understands how to access business systems securely. Use approved security tools and follow your organization's IT guidance.
A reliable backup can help your business recover if files are accidentally deleted, a device fails or ransomware disrupts access to your data.
Identify the information your business couldn't easily replace, including financial records, client files and operational documents. Back it up regularly using a secure solution.
Don't assume your backup is working just because it's scheduled. Test your ability to restore files, and keep a separate or protected backup that attackers can't easily access through your regular accounts.
Financial fraud can be especially disruptive for small businesses. A convincing message from someone posing as a supplier, executive or service provider could lead to an unauthorized payment.
Build verification into your regular processes:
These steps can help protect your business finances while reinforcing good internal controls.
Even with precautions in place, no business can eliminate every cyber risk. Knowing what to do next can help limit the impact.
If you suspect an account has been compromised or a fraudulent payment has been made:
Having a basic response plan, including who to contact and how to access backups, can make a stressful situation easier to manage.
Protecting your small business doesn't have to be complicated. Start with strong passwords, multi-factor authentication, regular software updates, secure backups and a clear process for verifying financial requests.
It's also worth reviewing who has access to your business systems and making sure your team knows how to recognize and report suspicious activity.
We’ve worked with Proactis, a cybersecurity partner that specializes in solutions for small and medium-sized businesses. The training we received helped our team better understand practical ways to recognize risks and protect our information.
For more practical advice to help manage your business, explore our Small Business Blog.