Cyber Threats to Small Businesses

Small businesses are becoming increasingly targeted by cyberattacks since they have information cybercriminals want and typically lack the security infrastructure of larger businesses. In fact, small businesses are the target of nearly half of all cyberattacks, according to a Verizon data breach report.

While cyberattacks are ever-evolving, business owners should be aware of the most common types and take steps to protect themselves against them. Common cybersecurity threats to small businesses include:

• Viruses—Viruses can give system access to cybercriminals and spread across connected devices.
• Ransomware—This type of malware infects and restricts computer access until a ransom is paid. Ransomware is typically delivered through phishing emails to exploit unpatched vulnerabilities in software.
• Phishing—Phishing attacks use email or malicious websites to infect a system with malware and collect sensitive data.

It’s becoming more and more common for insurance companies not to provide coverage until a small business has demonstrated that steps are in place to protect the company, educate staff and monitor for attacks. Questions an insurance company may ask before offering cyber coverage include:

• Is there a written plan?
• What happens if a breach occurs?
• What preventive steps have already been taken?

Since cybersecurity is now a core vulnerability for small businesses, it should be taken seriously. Cyber underwriters may pass on companies that aren’t doing basic things to protect themselves. Hiring a trusted, third-party advisor to do an independent analysis, profile risks and make realistic recommendations is a great place to start when assessing cybersecurity needs. For more information on cybersecurity, contact us today.