Top Cybersecurity Mistakes Small Business Make (And How to Avoid Them)

Move into the digital age, and many small business owners have operated with a dangerous delusion: "We're too small to be a target." We've talked to dozens of entrepreneurs who think hackers only go after the Googles and the Amazons of the world. Unfortunately, the data is much grimmer.

Small businesses are often the place of choice for cybercriminals because of "low-hanging fruit," which is valuable data that is protected by security at an entry level. Knowing what the common mistakes in cybersecurity committed by small businesses are is the first step to creating a hind-winding defense plan. In this guide, we are going to break down these common pitfalls and offer a clear and step-by-step roadmap to the future of your company.

The "Security by Obscurity" Style of Thinking

The biggest error is believing his or her size is a protection. We often see business owners being irresponsible with basic security protocols by believing that they are "flying under the radar."

The Problem: Automated bots of hackers scan the entire internet for vulnerabilities. They do not care who you are; they just care that the "digital door" of yours is unlocked. If you have customer credit card information, employee social security numbers, or proprietary designs, you are a target.

The Solution:

● Follow the Risk Management Rules. Accept the fact that a breach is a matter of "when," not “if.”

● Create a Security Policy: Even a two-page document that outlines how data should be handled can cause a shift in company culture. According to the Federal Communications Commission (FCC), digital theft is now the fastest-growing form of criminal activity.

Ignorance Towards Mobile and Remote Device Security

With the increase in remote working, the "office" is now the laptop in a coffee shop or the smartphone on the train. We've noticed that when office desktops may have been secured, personal devices that are used for work (BYOD) are often totally ignored.

The Problem: If one of your employees is using a foreign (in terms of being owned by someone other than you) phone to access the company email that's infected with a piece of malware, then there is a risk to your entire network. Mobile threats are changing and increasing at an ever-increasing rate, and not paying attention is a recipe for disaster.

The Solution:

● Endpoint Protection: Any device that comes in contact with your data needs to have security software.

● Don’t let employees download random “cleanup” apps. If your team relies on Apple devices, make sure they stick to verified, trustworthy tools instead of chasing unnecessary downloads. Many of these apps promise performance boosts but end up acting as bloatware or even creating security risks. That’s why professionals often rely on platforms like Cybernews to review and rank the best antivirus options for iPhone, so they can make informed decisions and avoid installing tools that do more harm than good.

Flawed Password Habits

Flawed Password Habits - We do not take the security of our passwords seriously and do not even consider using two-factor authentication for our devices.
We still have "Password123" types of passwords that are being used for Admin accounts. It sounds like a cliche, but it is one of the leading causes of data breaches. "The Solution: Multi-Factor Authentication (MFA): This is the single most effective thing that you can do. Even if a hacker has your password, he or she won't be able to get in without your phone's code.

The Pain Points:

● Credential Stuffing - Hackers take passwords that were leaked on other websites and attempt to log in with your business credentials.

● Password Fatigue: Employees have the same password for 20 different apps, as they can't remember unique passwords.

The Solution:

● Multi-Factor Authentication (MFA): This is the single most effective thing that you can do. Even if the hacker has your password, he or she will not be able to gain access without the code coming from your phone.

● Password Managers: Password managers, such as LastPass or 1Password, can be used to be able to create and store complex passwords.

Using "Outdated" or Unpatched Software

We get it - we get it: Software updates are annoying. They pop up when you are in the middle of a meeting. However, ignoring these updates is rather like leaving the keys in the front door.

The Problem: Most software updates have nothing to do with "new features" and are instead security patches to the vulnerabilities that hackers are exploiting.

The Solution:

● Enable Auto-Updates: Set all operating systems, as well as apps, to update automatically at 3:00 AM.

● Audit Your Hardware: If you have an Old router or server that is not getting updates from the manufacturer, then it's time to simply replace it.

Falling for Phishing, Social Engineering.

You can have a million-dollar firewall, but it won't matter if your office manager clicks on a link in a fake "invoice" email.

The Experience: We have seen businesses lose thousands of dollars because an employee received an email that was purporting to be from the CEO that requested an immediate wire transfer. This is referred to as "Business Email Compromise" (BEC).

The Solution:

● Awareness Training: Make it a regular part of your training to inform your team in ways to look out for red flags (email addresses that do not match the owner's name, urgent/threatening email, bad grammar, etc.).

● Verification Protocols: Implement a rule for the financial transaction over a specific amount to be verified through phone or in person. For further training resources, the Cybersecurity & Infrastructure Security Agency (CISA) provides detailed guides on recognizing social engineering.

Data Backup Strategies (Insufficient)

Ransomware is the worst nightmare of any small business out there. It locks your files and demands that you pay for them to be re-unlocked.

The Mistake: relying on 1 USB drive or "sync" service such as Dropbox as your only means of backup.If the original file is encrypted using ransomware, usually the "synced" file becomes encrypted as well.

The Solution (The 3-2-1 Rule):

1. 3 Copies: Keep Three Copies of your data
2. 2 Media types - Use two different types of storage (e.g, Cloud and Local Server).
3. 1 Offsite: Have one copy completely separate from your network.

Giving Everyone "Admin I'll tell you that you have all learned miles and miles or "audd" by doing this.

In small teams, we tend to believe everybody. This results in "Privilege Creep, in which the intern has the same access level as the IT manager.

So, if the intern's account is now compromised, the hacker has now been given access to your entire system Account as an Administrator.
 The Solution:

● Principle of Least Privilege: PoLP: Employees should only be given access that is necessary for them to perform their jobs. An editor does not need access to payroll, and a salesperson does not need access to server configurations.

Step-by-Step Instructions: Locking In Your Business in 5 Steps

If all else is overwhelming, do this right here. You don't need a massive budget to rectify the top cybersecurity mistakes made by small businesses.

1. Inventory Your Assets: List all of the laptops, phones, and software subscription(s) your company uses. You won't be able to protect what you don't know.

2. Turn on MFA Everywhere... right with your email, and then move on to your banking, social media, etc.

3. Clean Your "Digital House": Eliminate Old Employee Accounts and Uninstall Service Apps You No Longer Use.

4. Install Quality Protection: Invest in a good quality business-grade anti-virus and firewall.

5. Train Your Team: Spend 15 minutes a month talking with your staff about a new type of cyber threat.

Frequently Asked Questions

Q: Key aspects of antivirus for business. Is free antivirus software sufficient for your business? 

A: Generally, no. Free vs. paid antimalware. The free ones are geared toward home use and do not include the central management features and more advanced "behavioral analysis" that businesses require to prevent modern-day threats.

Q: How do I know that my business has been hacked already?

A: Look for Red Flags: Slowdown of network speeds, password reset email messages popping up, unexpectedly, out of nowhere, or "sent" folders full of emails you did not write.

Q: How Do Hackers Get In There?? Most of the time, hackers get in via this method.

A: Phishing emails are still #1 in areas of entry. It is a lot easier to deceive a human being than to "crack" a high-level encryption.

Conclusion: Security is not a Destination, it's a journey

Building a secure business does not happen overnight. It requires a shift in your and your team's outlook on your digital tool(s). By correcting these small business cybersecurity mistakes, you are not only saving your data, but you are saving your reputation, your people's livelihood, and your hard-earned growth.

Cybersecurity isn't a "tech problem," it's a business strategy. If you stay on your game, keep your software up to date, and teach your team to be sceptical, you will be ahead of 90% of your competitors.