Cyber-criminals do not only target big businesses and government organisations – they also go for SMEs, sole traders and even not-for-profits!

In fact, smaller enterprises are considered to be more at risk than large corporations, as they typically have fewer cyber security protections in place.

Cyber-crime costs the Australian economy billions per annum, and attacks are increasing each year, often pushed along by global events.

For example, the onset of the pandemic led to greater numbers of cyber-attacks. It’s thought this was largely due to the numbers of people working from home, using technology not adequately covered by workplace IT security systems. The war in Ukraine has also led to a heightened risk of attacks beyond the ‘norm’.  

The rise in cyber-crime and heightened threats has resulted in authorities such as the ACSC (Australian Cyber Security Centre) urging small businesses to ramp up their cyber security. The Australian Small Business Ombudsman also recently advised small businesses to safeguard their online identity, due to a potential increased risk of online impersonations and identity theft.

The effect of cyber-crime on small businesses

Some of the more typical cyber-crime attempts on small business include:

• Phishing – such as imposter emails and texts with suspicious links attached
• Malware – malicious software designed to steal confidential information.
• Ransomware – where data is stolen or corrupted, and a ransom is demanded for its return.

Cyber-crime can be particularly devastating for a small business. It can lead to financial losses, damage to reputation and business relationships, increased costs, and threats to intellectual property.

What can small businesses do about cyber risk? 

It’s crucial that small businesses put steps in place to tighten up their cyber security and reduce their risks.  

1. Increase cyber-crime awareness in your business

Become aware of the risks your business faces online, and the trends in cybercrime – such as by signing up for ACSC cyber risk alerts.

Train your staff members in recognising hoax emails and safe or unsafe websites, and in what to do in response – such as not responding to suspicious messages or clicking on attached links.

2. Beef up your IT security

This includes:

• Setting up separate logins and passwords for staff and implementing access restrictions to sensitive information.
• Performing regular backups – automatic backups are recommended.
• Installing antivirus software and firewalls.
• Ensuring you are running the latest version of your operating system.
• Installing any security patches where necessary.
• Being proactive in securing cyber protections – e.g. by treating it with the same level of diligence and care as you would for securing physical property.

3. Get insurance cover for financial protection

Cyber insurance provides financial compensation if you do experience losses due to cyber-attacks. It includes cover for data theft and corruption, business interruption, recovery costs and third-party liability.

So, if you do not have cover already in place, make sure to speak to your broker about getting the right cyber insurance for your small business ASAP!