Remember the big Target data breach a few years ago?
Hackers didn’t just wake up one day and decide to attack the retail giant directly. Instead, they strategically planned and infiltrated a small HVAC contractor that serviced Target’s stores, using that access point to compromise over 41 million customer records.
Cybercriminals continue to view small businesses as stepping stones to bigger prizes — and your sensitive data makes your small business an attractive entry point.
The small business cybersecurity gap
Forty-seven percent of businesses with fewer than 50 employees have no cybersecurity budget. Even more alarming, 51% have no cybersecurity measures in place at all.
Small business owners wear many hats, juggling multiple responsibilities and often lacking the resources to stay on top of evolving security threats. Small businesses typically store valuable financial information — including tax records, employee data and customer payment details — while maintaining fewer security protocols than larger corporations.
When small businesses suffer breaches, the consequences ripple through the economy and impact countless livelihoods. Beyond the immediate financial losses, these attacks can force business closures, eliminate jobs and erode customer trust.
The good news? You don’t need a Fortune 500 budget to build a strong defense against cybercriminals. Check out 10 ways to help protect the sensitive data that your business needs to operate:
- Maintain current software. Regular software updates are your first line of defense. Configure devices and applications to update automatically, ensuring you have the most updated security measures in place.
- Implement strong authentication practices. Replace simple passwords with memorable passphrases that combine multiple unrelated words and symbols. Layer this protection with multi-factor authentication to make it as secure as possible.
- Deploy anti-malware protection. Invest in reputable antivirus software and ad-blocking tools. These solutions actively scan for and neutralize threats before they can compromise your data.
- Establish secure network connections. Utilize Virtual Private Network (VPN) services to encrypt your internet traffic, especially when accessing financial data remotely. This encryption makes intercepted data virtually unreadable to attackers.
- Have backup systems in place. Maintain and secure backups of all critical documents and financial records. Store these backups on separate devices or in a cloud service that remains walled off from your primary systems.
- Secure email communications. Since data often travels via email, implement encryption protocols and consider using secure file-sharing platforms for sensitive document transmission.
- Limit access and permissions. Grant employees access only to the sensitive information necessary for their specific roles. Regularly audit these permissions, especially as employees move into new roles or leave the company.
- Develop an incident response plan. In advance of a possible breach, make sure you have detailed procedures nailed down, including steps for containing threats and notifying impacted parties.
Turning knowledge into protection
Protecting your tax data is essential for small business survival. Be proactive in preparing your business for whatever the future may bring. Questions about how we protect our clients’ data? Don’t hesitate to reach out.
This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance that is specific to your unique circumstances.