Cybersecurity for Small Businesses (2024)

The Internet allows businesses of all sizes and from any location to reach new and larger markets and provides opportunities to work more efficiently by using computer-based tools. Whether a company is thinking of adopting cloud computing or just using email and maintaining a website, cybersecurity should be a part of the plan. Theft of digital information has become the most commonly reported fraud, surpassing physical theft. Every business that uses the Internet is responsible for creating a culture of security that will enhance business and consumer confidence. In October 2012, the FCC re-launched the Small Biz Cyber Planner 2.0, an online resource to help small businesses create customized cybersecurity plans.

The FCC also released an updated one-page Cybersecurity Tip Sheet. The quick resource features new tips on creating a mobile device action plan and on payment and credit card security.

10 Cyber Security Tips for Small Business

Broadband and information technology are powerful factors in small businesses reaching new markets and increasing productivity and efficiency. However, businesses need a cybersecurity strategy to protect their own business, their customers, and their data from growing cybersecurity threats.

1. Train employees in security principles

Establish basic security practices and policies for employees, such as requiring strong passwords, and establish appropriate Internet use guidelines that detail penalties for violating company cybersecurity policies. Establish rules of behavior describing how to handle and protect customer information and other vital data.

2. Protect information, computers, and networks from cyber attacks

Keep clean machines: having the latest security software, web browser, and operating system are the best defenses against viruses, malware, and other online threats. Set antivirus software to run a scan after each update. Install other key software updates as soon as they are available.

3. Provide firewall security for your Internet connection

A firewall is a set of related programs that prevent outsiders from accessing data on a private network. Make sure the operating system's firewall is enabled or install free firewall software available online. If employees work from home, ensure that their home system(s) are protected by a firewall.

4. Create a mobile device action plan

Mobile devices can create significant security and management challenges, especially if they hold confidential information or can access the corporate network. Require users to password-protect their devices, encrypt their data, and install security apps to prevent criminals from stealing information while the phone is on public networks. Be sure to set reporting procedures for lost or stolen equipment.

5. Make backup copies of important business data and information

Regularly backup the data on all computers. Critical data includes word processing documents, electronic spreadsheets, databases, financial files, human resources files, and accounts receivable/payable files. Backup data automatically if possible, or at least weekly and store the copies either offsite or in the cloud.

6. Control physical access to your computers and create user accounts for each employee

Prevent access or use of business computers by unauthorized individuals. Laptops can be particularly easy targets for theft or can be lost, so lock them up when unattended. Make sure a separate user account is created for each employee and require strong passwords. Administrative privileges should only be given to trusted IT staff and key personnel.

7. Secure your Wi-Fi networks

If you have a Wi-Fi network for your workplace, make sure it is secure, encrypted, and hidden. To hide your Wi-Fi network, set up your wireless access point or router, so it does not broadcast the network name, known as the Service Set Identifier (SSID). Password protect access to the router.

8. Employ best practices on payment cards

Work with banks or processors to ensure the most trusted and validated tools and anti-fraud services are being used. You may also have additional security obligations pursuant to agreements with your bank or processor. Isolate payment systems from other, less secure programs and don't use the same computer to process payments and surf the Internet.

9. Limit employee access to data and information, limit authority to install software

Do not provide any one employee with access to all data systems. Employees should only be given access to the specific data systems that they need for their jobs, and should not be able to install any software without permission.

10. Passwords and authentication

Require employees to use unique passwords and change passwords every three months. Consider implementing multi-factor authentication that requires additional information beyond a password to gain entry. Check with your vendors that handle sensitive data, especially financial institutions, to see if they offer multi-factor authentication for your account.

Cybersecurity Resources for Small Businesses

The Office of Communications Business Opportunities provides Internet links to information about government agencies and private organizations that have educational resources and tools related to cybersecurity. The descriptions and links below are for informational purposes only. The FCC does not endorse any non-FCC product or service and is not responsible for the content of non-FCC websites, including their accuracy, completeness, or timeliness.

U.S. Government Resources and Activities

Cybersecurity is one of the most serious economic and national security challenges we face as a nation, but one that we as a government or as a country are not adequately prepared to counter. Please find below additional resources that are available to you to reduce your risk to potential cybersecurity threats.

Related Information

Cybersecurity for Small Businesses (2024)

FAQs

Do small companies need cyber security? ›

Broadband and information technology are powerful factors in small businesses reaching new markets and increasing productivity and efficiency. However, businesses need a cybersecurity strategy to protect their own business, their customers, and their data from growing cybersecurity threats.

How much should a small business spend on cyber security? ›

How much should you spend on cybersecurity? According to Statista, businesses worldwide spend an average of 12 percent of their IT budgets on cybersecurity. For example, if a company pays $3,000 monthly to an IT managed service provider to cover their IT needs, its cybersecurity budget would be about $360 per month.

How much does cyber security cost for a business? ›

Cybersecurity Pricing In-house

Small businesses with effective security programs allocate around 10% to 20% of their total IT budget to cybersecurity measures. With a similar budget, you can support a wide range of cybersecurity activities, including: Cybersecurity awareness training.

What is the cybersecurity framework for small business? ›

The NIST Cybersecurity Framework is voluntary guidance that helps organizations —regardless of size, sector, or maturity— better understand, assess, prioritize, and communicate their cybersecurity efforts. The Framework is not a one-size-fits-all approach to managing cybersecurity risks.

What percent of small businesses have no cybersecurity protection? ›

21% of small businesses with 500 employees or less are developing security plans. 30% have no protection against cyber attacks. 26. Only 28% of small business owners in the US report having cyber insurance.

Does my small business need cyber insurance? ›

If you own a business that collects or stores sensitive information, such as customer/supplier data or financial information, you may be at risk. Cyber insurance can help protect you from the financial consequences of a breach of these data and a disruption of your business.

How much is cybersecurity insurance for a small business? ›

For small businesses, annual cyber insurance premiums can range from $1,000 to $7,500. This range is dependent on several factors, which we discuss below. A recent survey found that the majority of cyber insurance underwriters expect rates to increase slightly in 2024.

How much does IT cost to hire a cybersecurity company? ›

What is the Real Cost of Hiring a Cybersecurity Company? The average cost of hiring a cybersecurity service provider on Clutch is between $100-$149 an hour.

How much does cybersecurity cost per month? ›

How Much Do Managed Cybersecurity Services Cost? Minimum costs for outsourced cybersecurity services start around $2,000 - $3,500 per month and go up from there. On a per-user basis, that breaks down to a range between $195 and $350 per user, including support and maintenance.

What are the 5 C's of cyber security? ›

This article discusses and explains the 5 C's of cybersecurity—Change, Continuity, Cost, Compliance, and Coverage—highlighting their importance in modern-day digital defense mechanisms.

What are the 3 C's of cyber security? ›

The 3Cs of Best Security: Comprehensive, Consolidated, and Collaborative. Cybercriminals are constantly finding new ways to exploit governments, major corporations and small to medium sized businesses.

How do I start a small business in cyber security? ›

How to Start a Cybersecurity Business: Building a Secure Future
  1. Acquire Expertise and Knowledge. ...
  2. Identify Your Niche and Target Market. ...
  3. Develop a Comprehensive Business Plan. ...
  4. Establish Legal and Operational Frameworks. ...
  5. Build a Talented Team. ...
  6. Offer Comprehensive Services. ...
  7. Invest in Infrastructure and Tools.

Does my business need cyber security? ›

If you run a business today, having good cyber security is as important as having locks on your office doors (perhaps even more so). What's more – unlike physical locks – cyber security is an ongoing process of protecting your business, your employees and your customers against ever-evolving threats.

What companies need cyber security the most? ›

Cybersecurity professionals are needed across every sector and industry, but it is clear that there is particularly urgent need in financial services, health care, government, manufacturing and retail.

Do startups need cyber security? ›

Why is cyber security important for startups? If you think that attacks are limited to billion-dollar firms targeting million-dollar payouts, you're wrong. According to the Verizon Data Breach Investigations Report (DBIR) for 2019, as many as 43% of all breaches occurred at small businesses.

Is cybersecurity really necessary? ›

Cybersecurity is crucial because it safeguards all types of data against theft and loss. Sensitive data, protected health information (PHI), personally identifiable information (PII), intellectual property, personal information, data, and government and business information systems are all included.

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