In today’s increasingly digital world, it’s more important than ever to be aware of the risks your small business could face online. Cybercrime can impact businesses in several ways, and a cyber-attack has the potential to cause financial and reputational damage to a small business or sole trader.
As businesses of all sizes know, building a great reputation and earning customer trust takes years of hard work. Without the appropriate precautions in place, this can be destroyed in minutes if the business is targeted by a cyber-attack.
Such events are not reserved for multi-million-pound organisations – cyber-attacks on small businesses can also prove costly. These attacks can be performed at lightning speed – sometimes all it takes is the simple click of a link – but the effects can be wide-reaching. Learn what a cyber-attack is and how to prevent cyber-attacks and keep your small business flourishing with protection.
What is a cyber-attack?
A cyber-attack is a criminal activity where a computer system, network or application is attacked or hacked with the aim of stealing, destroying or holding data to ransom.
Cybercrime poses an ongoing threat to small businesses. Therefore, it’s important to understand what a cyber-attack is, what one looks like, the measures you can take to safeguard your business and how to act if you fall victim to any form of cybercrime.
What are the cyber statistics in the UK?
To understand the threat of cyber-attacks on small businesses, here's a look at some vital statistics on cybercrime against small firms and UK businesses.
The results of a GOV.UK survey(external link) released in March 2020 confirms cyber security breaches are becoming more frequent. It found 46% of UK businesses and charities reported a cyber-attack during the year. Of those, 33% claimed they experienced a cyber breach in 2020 at least once a week – up from 22% in 2017.
The average mean cost of a cyber security breach for a small business in 2019 was £11,000. This figure includes costs such as ransom payments, hardware replacements and indirect factors such as business interruption.
Types of cybercrime
Phishing attack : Hackers use phishing to get victims to part with personal data. This usually comes via a link presented in an email, SMS or instant message
SQL injection: An SQL injection happens when a cyber-criminal embeds harmful code into a webpage or application to access data.
Malware: Malware is malicious software designed to cause harm to a targeted computer or server. Viruses and worms are malware, as is ransomware, which is often launched as part of a phishing attack.
Denial-of-Service attacks : A denial-of-service cyber-attack is performed by hackers to halt the operation of an online service and might be carried out by inundating a system with requests or traffic, rendering it unusable.
Man-in-the-Middle attacks: During a man-in-the-middle cyber-attack, a cyber-criminal will intercept conversations, transactions and the transfer of data between the victim and a service they’re trying to use.
Examples of recent cyber-attacks
Reading about real-life cyber-attacks can help you to understand what a cyber-attack is, the potential impact, and how to prevent anything happening to your small business.
Capital One breach
In July 2019, financial corporation Capital One found a cloud-based data storage server had been hacked. This gave criminals access to personal information from small business customers which had applied for a credit card with the company. It’s thought that approximately 100 million people(external link) in the USA and six million in Canada were affected.
The Weather Channel ransomware
The Weather Channel was targeted by a ransomware attack in April 2019. The television service was impacted by a ‘malicious software attack’(external link) as it was due to go live at 6am, but was back on air within two hours. This turnar
ound is testament to the service’s cybercrime preparations – they had a backup system ready to launch.
Texas ransomware attacks
In August 2019, it was revealed that organisations connected to the local government of 23 towns and small cities(external link) in Texas were struck by a co-ordinated ransomware attack. The hacker targeted small municipalities demanding a ransom, making services such as payment processing impossible.
How to prevent cyber-attacks
By putting the right processes in place, you can safeguard your small business. Fortunately, there are some simple ways to improve your cyber security, stay protected and prevent cyber-attacks:
Cyber security training
Provide training in cyber security principles, such as locking their computers when they’re not at their desk, regularly changing their passwords and not opening suspicious files or links.
Control access data
Control access to your computers and network by providing employees with their own password-protected user accounts and limiting authority to download software and access sensitive data. Speak to Virtual Edge expert team for advice and support.
Install and regularly update antivirus and antispyware software, use firewalls for your internet connection, secure Wi-Fi networks with passwords, and keep the software for your operating systems and applications updated. Virtual Edge help businesses keep their whole network UpToDate and secure, Speak to an advisor and get free audit done on your system.