Cybersecurity Worries Arise for CUs' Small Business Owners, Members

Most small business owners do not think of themselves as hack targets but more than half fall victim to a cyberattack with the average reported cost ranging from $84,000 to $148,000.

To scare small businesses straight as part of National Cyber Security Awareness Month, Microsoft Store presented a lifelike simulation of a common cyberattack, led by a Microsoft cybersecurity expert; as well as an infographic listing cyberattacks dangers and actionable steps small business owners, many of which are credit union customers, can take to assuage cyberthreats.

According to Towergate Insurance’s report, “SMEs and Cyber Attacks,” nearly 82% of small business owners think their business does not have data of interest to hackers yet 61%, per Ponemon, have suffered a cyberattacks and over half have had a data breach.

The infographic contained some other frightening information for small businesses, such as 58% of data breaches target small businesses and it only take 4 minutes to get into a network, but on average, it takes more than 99 days for hacked business to discover the incident.

Small business owners may not know the appropriate steps to protect themselves, and others may find the topic daunting.

This was the situation for Quants Bakery, a six-employee catering and subscription-based vegan bakery in Glendora, Calif. Sean Etesham, CEO, started the online-based business in September 2017 after he saw a need for more vegan options at his local coffee shops. Like many first-time small business owners strapped for resources, he launched the business and operated it without a dedicated IT person or cybersecurity software. “Our worst nightmare would be if someone broke into the back end …and took all of the customer credit card information…and posted it online,” Etesham shared.

Microsoft Store recently teamed up with a cybersecurity expert to take the vegan bakery CEO and CIO, Richard Idigo, through a lifelike simulation of a common phishing scam, giving them a firsthand look at the damage possible in mere minutes, shocking them with how easily a hacker can create a false site to access passwords and compromise their data.

Any small business owner can confirm that success and health of their business is of utmost importance, so addressing cybersecurity vulnerabilities should be a top concern.  “I’ve made a lot of sacrifices in terms of my time and energy that could’ve been spent elsewhere,” Sean explained. “I cashed out my retirement accounts, and my investment accounts, and put all that money towards the business.”

Many small business owners do not have IT departments to turn to in the case of a cybersecurity emergency. The simulation helped Etesham understand the type of security protections and other actions needed to safeguard his business and avoid phishing attacks such as protecting Wi-Fi networks, handling sensitive data and safeguarding passwords.