For many small-to-midsize businesses, the holiday season is a beacon of optimism for increased sales, festive promotions and a rush of new customers offering potential for long-term growth and profitability. However, the reality can become quite the opposite without the proper protections in place. According to a report from
As a small business owner, it's important to understand what these threats are and what you can do to protect your livelihood.
Why cybercriminals target small businesses during the holidays
Small businesses often take the brunt of holiday cybercrime attempts due to increased susceptibility. Here are a few of the reasons that lead to these vulnerabilities.
Increased consumer activity: The holiday season brings in an influx in transactions, both in physical stores and online. This means hackers can gain access to a large volume of consumer data, like credit card numbers and personal information, in a short period of time.
Employee limitations: Seasonal hires and diverted employee attention can contribute to a more vulnerable environment. Whether it's a lack of training or a shift in focus to keep up with consumer demands, cybercriminals take advantage of these gaps in prevention strategies.
Limited resources: Many small-to-midsize businesses simply aren't equipped with the necessary security measures that you might see at larger corporations. Outdated or inadequate systems are easy for cybercriminals to penetrate and can lead to ransomware, phishing scams, and data breaches during peak shopping seasons like Black Friday, Cyber Monday and beyond.
Preventative cybersecurity measures for small businesses
As a small business owner, you may not have the budget to implement robust cybersecurity measures, but there are affordable strategies you can implement to better protect your operation.
Software updates: Updating company software is crucial, especially as it relates to point-of-sale (POS) systems and websites. Cybercriminals look to exploit vulnerabilities in outdated software, and automating these updates when possible can help ease the burden tracking updates.
Two-factor authentication (2FA): All businesses should utilize 2FA and implement strict password requirements to limit unwarranted access to sensitive company and customer information.
Employee training: Ongoing employee training is a critical component of ensuring company representatives are aware of the latest trends in phishing attacks and other suspicious activities.
Consider cyber liability insurance to help mitigate risk
Even with every possible defense strategy in place, businesses are still at risk of a cyber breach. This makes implementing the right insurance coverages crucial as the aftermath of a cyber attack can be detrimental to a small business. From financial ramifications to damaged reputations, recovering from these losses can be seemingly impossible without the right insurance partner in place. Cyber liability insurance can cover a number of critical expenses, including:
Data breach costs: If sensitive customer data is stolen, cyber insurance can cover the costs of notifying customers, legal fees, and even regulatory penalties.
Ransomware and extortion: If your business falls victim to ransomware, cyber insurance can help cover the ransom payment or the cost of restoring your systems.
Business interruption: If a cyber-attack forces your business to shut down temporarily, cyber insurance can compensate you for lost income during the downtime.
Legal defense and settlements: Should a data breach lead to lawsuits from affected customers, cyber liability insurance can cover the costs of your legal defense and any settlement or judgment.
A proactive approach to preventing cyber attacks is the first step in protecting your small business this holiday season. By implementing these simple cybersecurity measures as well as securing the right cyber liability coverage for your business, you can turn your attention to what really matters - serving your customers and enjoying the festive holiday season.
