How small businesses can protect themselves from cyberattacks this festive season
November 8, 2024 | By Sophie Bournhonesque
The festive season is the busiest time of year for most small businesses — and unfortunately, it’s also prime time for cyberattacks. With the sharp increase in online transactions during the holidays, cybercriminals ramp up their efforts to exploit vulnerabilities, especially in small and medium-sized businesses.
For small business owners, the consequences of a cyberattack can be ruinous. According to a recent industry report on the state of IT for small and medium-sized businesses, the average cost of a cyberattack ranges from €110,000 to €1.14 million per incident. In 2023 alone, nearly 43% of all cyberattacks targeted smaller businesses.
The effects of these breaches extend beyond individual businesses to their customers and communities. These businesses are the backbone of economies, accounting for 90% of all businesses, providing 60% to 70% of jobs, and generating half of the global GDP.
Cybersecurity concerns are a top threat for 84% of small business owners in the UK for example, with 48% having sought external information or guidance in the last 12 months on the cyber security threats faced by their organization, according to Gov.UK. Nearly 60% of small businesses in the UK have identified breaches or attacks in the last 12 months.
"While small businesses are increasingly aware of the cybersecurity threats they face, many still feel vulnerable,” says Michele Centemero, executive vice president of Services Europe at Mastercard. “They are in search of straightforward, effective solutions that offer strong protection without overwhelming complexity. Above all, they seek a trusted partner in security — one that empowers them to safeguard their operations and focus on what truly matters: growing their business and serving their customers with peace of mind."
Since 2020, Mastercard has helped 50 million more small businesses securely pay, get paid, access capital and digitize their operations. And many are actively taking measures to protect their sensitive data in a way that still ensure smooth transaction experience for their customers. But some business owners still believe they are beneath the notice of hackers and fraudsters.
Cybercriminals know that budget constraints often prevent small businesses from hiring dedicated IT or cybersecurity personnel, leaving owners to juggle security on top of other responsibilities. Unfortunately, even if small businesses recover financially from an attack, reputational damage can be lasting, eroding customer trust and affecting long-term success.
As small businesses globally advance in their digital transformation, the cyber threats they encounter grow significantly. Here are six strategies to help small businesses to stay safe this holiday season and beyond, by safeguarding their data and, importantly, their customers' data.
01
Update your devices
Boost your digital immunity against threats such as viruses and spyware by ensuring your systems up to date. Software updates often include protections against the latest security threats, so set your devices to update automatically to stay secure.
02
Implement strong password
Instead of simple passwords, use passphrases that only you would remember. Implement multi-factor authentication, such as passcodes, biometrics, or other tools, to secure your accounts and provide extra protection against hackers.
03
Prevent phishing and malware
Anti-virus software and ad blockers can shield your systems from malicious activities. Using a VPN adds another layer of security by encrypting your data, making it much harder for attackers to decipher if your system is breached.
04
Regularly back up your data
Having up-to-date backups is crucial for recovering from cyberattacks and is generally good business practice. Store your backups in a separate location or on a different device that isn't connected to the computer you're backing up.
05
Protect your mail and reputation
Protect your email addresses and domain name from impersonators by using a DMARC (Domain-based Message Authentication, Reporting, and Conformance) tool. This email authentication protocol helps protect domains from unauthorized use such as email spoofing.
06
Assess Third-party Risks
Safeguard your data and systems from being compromised by understanding the security of your supply chains and third-party risk. Check the cyber risk of external systems that are interlinked with your own using a solution such as My Cyber Risk powered by RiskRecon to help you understand any exposure and act on those risks.
Taking proactive steps now not only helps preserve business continuity but also reinforces customer trust, enabling small businesses to focus on what they do best—serving their customers during this busy holiday season.
About Mastercard (NYSE: MA)
Mastercard powers economies and empowers people in 200+ countries and territories worldwide. Together with our customers, we’re building a sustainable economy where everyone can prosper. We support a wide range of digital payments choices, making transactions secure, simple, smart and accessible. Our technology and innovation, partnerships and networks combine to deliver a unique set of products and services that help people, businesses and governments realize their greatest potential.
