Cybersecurity Risks Faced by Small Businesses

Cocharane_CybersecurityRisks

Cybersecurity risks are an ever growing threat in the business world and no company is off limits from security attacks. When you think of cyberattacks that target companies, you might think of multinational corporations and Fortune 500 businesses.

Cybersecurity Risks

Indeed, many cyber hackers aim to crack major entities. They do this by accessing precious data. However, that does mean that small businesses do not face these threats. There are many reasons why even small companies need business insurance. Specifically, cyber insurance can shield companies of any size from the financial fallout that often accompanies a cyberattack. Find out why your small business clients may be susceptible.

Phishing

Phishing is one of the oldest and most common forms of cyberattack. It can take several forms. Most hackers accomplish this by sending mass emails to a company’s web address. These emails may mimic the appearance of a legitimate email that someone at the company has sent to fool recipients. However, cyber attackers send these messages, and they will usually contain links that transmit malware or ransomware. Alternately, a phishing email may contain a link that invites the recipient to submit their login credentials. If a person succumbs to this, it may reveal confidential data.

Malware is a common problem, and it can have a devastating impact on a small business. It is software that hackers design to disrupt, damage, or gain unauthorized access to a company’s server. Many types of malware exist, including viruses, Trojan horse attacks, scareware, and rogue software.

These types of malware ultimately disrupt the function of the target’s device, slow down operations, and compromise its security. More critical infections may even be able to steal sensitive information, too.

Ransomware

Ransomware is yet another one of the most common small business cyber threats. It is malware. Hackers launch it when their victim downloads a malignant file to their computer. The file then restricts access to the device and often includes a threat to publish personal information if the user does not pay a fee — hence the name ransomware. In some cases, hackers use this kind of malware to encrypt all files on a database until they receive the ransom.

Credential Compromise

Small businesses should know that compromises do not always come from outside sources. Sometimes a cybersecurity breach originates from within the company. It is often the case when compromised credentials occur. Most companies require a username and password to access secure systems, but if that information falls into the wrong hands, anybody could gain access to a small business’ sensitive data. Companies of all sizes must remind staff to vigilantly guard their credentials and never share them with an unauthorized person. There are always solutions to help companies overcome data breaches and hacks.

Cochrane & Company

For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (855) 967-0069.

   

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