How To Protect Your Business From The Rising Threat of Cyberattacks

Truth: if your business is online, you’re a prime target for a cyberattack. It doesn’t matter whether you’re running a small bakery or a multinational tech empire. If you have data, cybercriminals want it. And at some point, they’re going to break in, disguised as “urgent” emails, sneaky malware, and a host of too-good-to-be true offers.

Statistics show that small businesses are hit with 10,000 cyberattacks every single day. Why? Because hackers see modest establishments as low-hanging fruit. In other words, the smaller ypi are, the easier you are to pick off and exploit. They count on small-business owners assuming, “Oh, no one’s going to target me,” then pull you through the cracks of your weak security system faster than you can say “data breach”.

These are the situations we work our hardest every day to avoid. That’s why we are committed to raising awareness around the rising threat of cyberattacks, educating you on how to respond, and presenting you with some solutions that can bring you added security and peace of mind.

The Most Common Cyber Threats Facing Online Businesses Today

If you operate in the digital space, your business is at risk of a cyberattack. These are some of the most common cyber threats your business should be on the lookout for:

1. Phishing Scams

Phishing is one of the most common and dangerous methods cyber criminals use to attack. This method often employs deceptive emails or seemingly legitimate text messages designed to trick your employees into revealing sensitive information such as login credentials or financial details.

2. Ransomware Attacks

Hackers use ransomware to encrypt your company data and demand a ransom payment in exchange for restoring access. This type of attack can bring your business to a standstill, and lead to significant downtime and revenue loss.

3. “Social Engineering” Fraud

Many cybercriminals manipulate employees into making wire transfers or revealing confidential information through so-called social engineering tactics. Smaller businesses are particularly vulnerable because modest establishments often lack internal security protocols strong enough to combat this.

4. Third-Party Security Risks

The various vendors, partners, and service providers your business works with each creates additional cybersecurity risks. Studies show that third-party relationships account for 41% of data breaches, so be aware of whom you associate with. A target on their back could be on yours next.

5. Collateral Damage From Large-Scale Attacks

Even if your business isn’t directly targeted, it can still suffer collateral damage from widespread cyberattacks on major service providers, cloud storage companies, or financial institutions. For example, remember when major internet security provider Cloudflare had an outage? Businesses worldwide suddenly found their websites inaccessible, transactions were stalled, and customers were left staring at error messages instead of shopping carts.

What To Do After A Data Breach

Even with the best preventive measures in place, data breaches can still occur. The key is to act quickly and strategically to minimize damage. Here are the immediate steps your business should take in the event of a data breach:

Step 1: Confirm The Breach And Contain The Threat

Once a breach is detected, it’s crucial to isolate affected systems to prevent further data loss. Your business should notify your IT team or cybersecurity partner immediately to assess the scope of the breach.

Step 2: Notify Affected Customers And Regulatory Authorities

Under Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA), businesses must inform customers if their personal data has been compromised. Depending on the severity of the breach, businesses may also be required to notify regulatory bodies.

Step 3: Offer Identity Protection Services

Companies handling sensitive customer data should consider offering credit monitoring or identity restoration services to affected individuals. These services help mitigate financial fraud and identity theft risks.

Step 4: Implement Fraud Alerts And Security Freezes

Encourage customers and employees to place fraud alerts on their credit reports. A security freeze prevents criminals from opening new accounts under a stolen identity.

Step 5: Review And Strengthen Cybersecurity Measures

After addressing the immediate risks, businesses should conduct a thorough security audit. This includes updating security policies, implementing two-factor authentication, and enhancing employee cybersecurity training.

Why Cyber Insurance Is No Longer Optional

Imagine this: you run a boutique marketing firm. One day, your accountant gets an email from someone claiming to be your bank, urging them to confirm login credentials. They click, enter the requested information, hackers suddenly have access to your financials. Next thing you know, payments are being wired to an offshore account, your client data is compromised, and your team is locked out of your own system. Now, you’re scrambling, losing money, and wishing you’d taken cybersecurity more seriously.

At Waypoint, we’ve seen this scenario play out more times than we can count. That’s why we’re here. Our team is committed to helping businesses like yours prepare, protect, and bounce back when the inevitable happens.

Cyber insurance provides financial protection and risk mitigation by covering losses associated with system failures, information theft, funds transfer fraud, and even legal liabilities related to a company’s online presence. Whether it’s a stolen laptop containing sensitive client information or a sophisticated ransomware attack locking down business operations, cyber insurance ensures businesses can recover quickly.

Protect Your Business With Waypoint’s Cyber Solutions

From system failures to cyber extortion, our policies provide extensive protection, ensuring that your business can recover swiftly from cyber incidents. Contact us today at 1 (866) 674-2813 or venture@waypoint.ca to get a cyber insurance quote and safeguard your growing business from looming digital threats.