Recent news of the Optus data breach – one of the biggest data breaches in Australian history – has brought conversations around data privacy and protection to the fore, and shed brighter light on the importance of prioritising cybersecurity for businesses navigating their way into the digital future.
Cyberattacks have become common amongst major companies, a trend that has only accelerated in recent years. Smaller companies are just as prone to cyberattacks and, with less expertise and resources, it can be even more damaging for them. In fact, the Australian Cyber Security Commission (ACSC) found that small businesses made a higher number of cybercrime reports in the 2020-21 financial year than in the previous year.
An issue more concerning is the reality that less than half of Australia’s small businesses have an adequate approach to data privacy. Zoho’s research revealed that one in four businesses either don’t have a data privacy policy or don’t know if they do.
While small businesses often overlook their responsibilities when it comes to data privacy, the threat and the potential cost is real. Small businesses cannot be expected to become privacy and cybersecurity experts overnight. Helping raise awareness, educate and take action should be a priority for the technology industry and policymakers.
Identifying a cyber threat
Despite ransomware being placed in the spotlight with the Optus data breach, cyberattacks come in many different forms, including phishing, malware and online scams. Often, many small businesses do not realise they have been targeted until it is too late. Small businesses have to remember that these attacks have malicious intent and seek to damage or steal data or disrupt business operations in general.
Third-party cookies have also in many ways come to define the debate around data privacy. However, many small businesses are in two minds about their use. The same research from Zoho found that one in three are entirely unaware that tracking occurs via cookies in their business in the first place, and a further 32 per cent are aware that it happens but do not communicate it to their customers.
It is not about if, but when
Australia is a nation of entrepreneurs and small businesses who are by now heavily reliant on digital channels – this makes the country’s vulnerability to the growing cyber threats higher. Data security measures can be a helpful step towards protecting small businesses and reducing the chances of their data being compromised. Security and access management should not be limited to big corporations.
The best way to deal with the threat is to acknowledge that cybersecurity and data privacy is a shared responsibility. It starts with setting up preventative measures to protect the business’s data against cyberattacks by investing in strong IT security tools, implementing a strategy for emerging threats, and putting in place education programs for employees.
Taking preventative measures
There is a common misconception that data is safer offline, in on-premise servers and in paper systems that present physical barriers to access. However, the more data that is accumulated, the more vulnerable the small business is to risks in both short- and long-term.
Integrating cloud security as part of a business strategy can be overwhelming as it requires storing data off-site and building a trusted relationship with the vendor. Understanding how the cloud works and taking preventative measures to protect your data integrity is critical for benefiting from technology and building resilience for the future. Start small: use a password manager, enable multi-factor-authentication, and set permissions for data access. Ask the vendors questions, train employees on best cloud practices, and make sure there is a high level of understanding on the data journey.
Cyber risks are real, but with awareness, education and action, small businesses can protect their business and feel the full benefits of digital transformation.
