3 Ways Small Businesses Can Prevent Cyberfraud

Small and medium-sized businesses are targeted for cyberfraud more often than larger ones because they typically have fewer security controls in place. But if Fortune 500 retailers like Target and global tech companies such as Facebook can fall victim to cyber breaches despite their substantial budgets, does the average small business owner even have a chance of protecting proprietary corporate data and customers’ personal and financial information? The short answer is yes.

 

Below are a few tips CPAs share with their business clients:

 

• Encrypt before backing up. Even safeguards like two-factor authentication (2FA) are not foolproof. Sending an SMS text as part of 2FA seems secure, but if the carrier account is compromised, the authentication can still be hijacked. If hacked, a small business can still protect its data by using strong encryption. Always make sure data is encrypted – and can only be unlocked by keying in a password – before saving to external devices or backing up to the cloud.

 

• Train and test employees. Understand and teach employees about both internal and external cyber threats. Phishing is an intrusion resulting from an external condition (that is, someone sending your employee an email that is not legitimate), but the response to the receipt of that email is the internal condition impacting the ultimate result (either providing the perpetrator with sensitive data or denying access). Test employees to see if they would fall victim to phishing schemes.

 

• Implement security controls. Technology itself poses a challenge for small businesses because it is always changing and advancing. It is critical for small businesses to have the proper security controls in place, as it is estimated that doing so can prevent roughly 90% of cyber breaches. Stay aware of the latest trends in firewalls and anti-virus protection and be sure to install software updates and patches as soon as they are available. Frequently remind employees to use complex passwords and change them often.