Featuring a guest post this week on cyber security and the measure you can take as a small business to protect yourself…
Why Hackers Are Targeting Start-Ups and How to Protect Your Young Venture
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In August 2013, Yahoo! was hit by a cyberattack where over 3 billion user accounts were hacked. The fallout from the biggest cyberattack to date is estimated to have reduced the company’s value by $350 million when it was finally bought by Verizon in 2017. Since then, incidents of cyberattacks and data breaches seem to be dominating the news cycle.
In most cases, high-profile breaches such as Yahoo! will dominate the headlines but its start-up companies and small businesses that are most vulnerable. Smaller businesses seem to be a favorite target of high-tech villains. Large businesses are increasingly dedicating more resources to and becoming savvier about cybersecurity and as a result, cybercriminals are turning their attention to smaller businesses.
Common Cyber security Threats
The vast majority of start-up entrepreneurs and small business owners believe that their businesses don’t have anything of value to steal and, therefore, can’t be the target of cyberattacks. Well, this is simply not true. Start-ups have a lot to protect including customer information, reputation, brand, and intellectual property. Here are a few cyberthreats start-ups should be concerned about.
On average, a business will incur $200,000 in losses after a cyberattack. These costs arise from issues such as downtime, sustained system outage, cost of any data that may be lost, ransoms, and potential lawsuits. Data from the US National Cyber Security Alliance shows that 60% of small businesses that suffer a cyberattack go out of business within half a year. Here are a few cybersecurity tips to help you avoid these consequences.
Cyber security continues to occupy an expanding slice of conversations in the business world. With almost half of cyberattacks targeting start-ups and small businesses, these enterprises are most vulnerable to cyberattacks. But despite these statistics, a lot of start-up entrepreneurs believe that their businesses are too small to be targeted. This failure to recognize potential losses is perhaps the biggest cybersecurity risk facing start-ups.