What’s in This Article:
What Small Businesses Need to Know About Data Security
More Information on Data Security for Small Businesses
What Small Businesses Need to Know About Data Security
Does your company have sufficient safeguards in place to protect client, employee, and company data?
Small businesses are often targets for cyberattacks because they may not have the same level of data security as larger companies, yet they still hold valuable information. Small businesses can also be used as a stepping stone into larger companies.
The scary part is that a data breach can have serious financial and operational consequences for a small business. Now that the seriousness of the issue is sinking in, what needs to be done?
Your Part in Data Security
Evaluate what you have. Below are some important questions to consider when protecting your small business data:
- Does your company use the cloud? Who is responsible for protecting your data?
- Do your company policies cover Bring Your Own Device (BYOD)?
- How is your data stored, moved, and disposed of?
- Don’t forget to review how paper is handled in your company.
Another area to evaluate is your payroll. If this is outsourced, how is your employees’ information being kept safe?
Know your legal obligations. If you accept credit cards, you need to understand the applicable security requirements. Visit the PCI Security Standards Council for details.
This should be taken a step further by reviewing agreements with outsourced companies, cloud providers, subcontractors, and company policies regarding employee responsibilities.
Now that you know what you have and your legal responsibilities, it is time to take action.
- Weaknesses need to be corrected, including outdated software, weak passwords, and accounts without multifactor authentication (MFA).
- Areas of legal liability and security risks involving outside providers need to be addressed.
- Employees need to be informed and trained to recognize cybersecurity threats.
Once your company’s security is up to par, the work is not done. Procedures need to be in place to continuously evaluate your company’s security. Remember, letting your guard down can create weaknesses that put your business and its information at risk.
More Information on Data Security for Small Businesses
Check out these resources for more information:
- Better Business Bureau (BBB) — Business resources and guidance.
- National Institute of Standards and Technology (NIST) — Small Business Cybersecurity Corner.
- Federal Trade Commission (FTC) — Cybersecurity for Small Business.
Protecting sensitive information is an important part of maintaining reliable business operations and financial records. At Cheryl Jefferson & Associates, we help small businesses strengthen their accounting processes and financial controls. Contact CJA to learn more.
Frequently Asked Questions
Why are small businesses targets for cyberattacks?
Small businesses often hold valuable information but may have fewer cybersecurity resources than larger organizations.
How can a small business improve data security?
Start with strong passwords, multifactor authentication, software updates, employee training, and secure backups.
Is data stored in the cloud automatically secure?
No. Businesses still need to manage access, review provider security practices, and protect employee accounts.
