10 tips to protect small businesses from cyber attacks

SALT LAKE CITY — Cyber threats are an issue for everyone and every business, but small businesses are becoming more common targets. According to a 2013 Verizon Data Report, 40 percent of all breaches have occurred in organizations of 1,000 or fewer employees and 31 percent in organizations of fewer than 100 employees.

Data breaches and cyber attacks are also becoming more common and have increased 42 percent in the last year alone according to the Symantec 2013 Internet Security Threat Report.

While there's a broad range of threats, the most common are categorized under website tampering, data theft, denial-of-service attacks and malicious code and viruses. Small businesses are often more vulnerable to all four types based on their lack of preventive or responsive resources that larger companies have.

The costs associated with a breach average $188 per compromised record according to the Ponemon 2013 Cost of Data Breach Study. The cost can quickly add up with the amount of sensitive employee, customer, and business information businesses store.

The vast majority of U.S. small businesses lack a formal cyber security policy for employees, and only about half have even basic Internet security measures in place. Furthermore, only about a quarter of small business owners have had an outside party test their computer systems to ensure they are hacker proof, and nearly 40 percent do not have their data backed up in more than one location.

10 Ways to Prevent Cyber Attacks

Even if you don't currently have the resources to bring in an outside expert to test your computer systems and make security recommendations, there are basic, steps you can take to decrease your risk of a costly cyber attack.

1. Select strong passwords (numbers and letters) and regularly change them. Do not use the same business passwords on any outside systems.
2. Train employees in cyber security principles.
3. Install, use and regularly update antivirus and antispyware software on every computer used in your business.
4. Use a firewall for your Internet connection.
5. Download and install software updates for your operating systems and applications as they become available.
6. Make backup copies of important business data and information and keep the backups offline.
7. Control physical access to your computers and network components.
8. Secure your Wi-Fi networks. If you have a Wi-Fi network for your workplace make sure it is secure and hidden.
9. Require individual user accounts for each employee.
10. Limit employee access to data and information to only what is needed for their job, and limit authority to install software.

Employers should also look into obtaining cyber liability insurance because liability for the loss of customer/employee data is rarely covered under standard commercial insurance policies.

A 2012 study by Chubb Group of Insurance Companies found that 65 percent of public companies forego cyber insurance - even though they identify cyber risk as their number one concern. Meanwhile, a quarter of those surveyed are expecting a cyber breach in the coming year.

"I think the number one reason most employers don't have cyber liability insurance is they don't know it exists," said Peggy Larsen, President of Univantage Insurance Solutions. "When we approach employers about the product, many are unaware of it. They are also surprised at how affordable it can be based on the potential risk. Policies can be as low as $300 a year."

For additional resources and information on cyber security, check out Homeland Security's Stop.Think.Connect website. The Federal Communications Commission (FCC) also provides a tool for small businesses that can create a cyber security plan for your company. It can be found at fcc.gov/cyberplanner.

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