Fighting Cyber Crime: A Leader's Guide to Cybersecurity

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Underestimating your business’s cyber risk can lead to devastating consequences. As cybercrime continues to evolve and grow in sophistication, small and medium-sized businesses (SMBs) are increasingly being targeted due to perceived vulnerabilities. This comprehensive resource provides executives with the knowledge and strategies needed to fortify their organization’s defenses against these mounting threats. 

In a hurry? Download Fighting Cyber Crime: A Leader’s Guide to Cybersecurity and take these insights with you.

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Enhance your defenses from sophisticated cyber threats with expert strategies from a trusted managed service provider. Download now.  

The Risk of Underestimating Your Cyber Risk

Common cybersecurity misconceptions, like believing “small businesses aren’t targets,” can create dangerous vulnerabilities. This mindset leads to weak defenses, making these businesses easier prey for cybercriminals. 

Underestimating your risk can result in devastating breaches, financial losses, and reputational damage. An important first step to improving your security posture is understanding the different types of hackers and risks. This knowledge will help you better defend against potential threats. 

There are three main types of hackers you’ll hear about: white hat, gray hat, and black hat.

1. White Hat Hackers

You might already be familiar with white hat hackers – even if you aren’t familiar with the name. These are the hired professionals who help organizations identify vulnerabilities in their environments and enhance the business’s security. 

2. Black Hat Hackers

Black hats are the bad guys everyone usually thinks of when someone says hacker, threat actor, or cybercriminal. They’re motivated by personal gain and pose a significant threat to small businesses through financial theft, data breaches, and cyber espionage.

3. Gray Hat Hackers

Gray hat hackers operate in a legal gray area, often navigating the fine line between ethical and malicious behavior. Unlike black hat hackers, they aren’t always driven by malicious goals, but their unpredictable motives may pose risks to businesses. They might identify security vulnerabilities without authorization sometimes with good intentions but their actions can still violate laws or ethical standards.  

The Evolution of Cyber Attacks and Its Impact on Small Businesses

The history of cyber attacks underscores the need for modern businesses to adopt proactive cybersecurity strategies. Over the decades, these threats have evolved from basic breaches in the 1960s to sophisticated AI-driven attacks that are capable of bypassing even advanced defenses. During the COVID-19 pandemic alone, cybercrime increased by 600% highlighting the alarming surge in frequency and complexity of attacks. 

Small businesses – representing 43% of cyberattack victims – are especially susceptible to advanced threats like ransomware, phishing, and advanced persistent threats (APTs). Unfortunately, it’s the lack of comprehensive security measures makes them prime targets for cybercriminals. 

What’s more concerning is the increase in attacks on cloud environments. In 2023, an astonishing 90% of all cyber attacks targeted cloud-based infrastructures. To make matters worse, ransomware attacks using double extortion tactics spiked by 64% from 2022 to 2023. With ransomware evolving rapidly and more businesses shifting to cloud-based solutions, securing cloud infrastructure must be a top priority for businesses of all sizes. 

The Financial Implications of Cyber Attacks

The financial impact of a cyberattack can be devastating. If the current surge in cyber threats persists, the financial toll on SMBs will be staggering. By 2025, global damages from cybercrime are projected to hit $10.5 trillion—representing a 300% increase from 2015​. But what does this mean for individual businesses? 

Unfortunately, the numbers don’t look good. According to IBM, the average cost of a data breach climbed in 2023, reaching $4.45 million. This marks a 15% rise in just three years, signaling a growing financial risk for businesses of all sizes. 

Why Email Security is Essential for SMBs

Email security is vital for small businesses, as email is one of the most common entry points for cyberattacks. In fact, 91% of cyberattacks start with a phishing email. Phishing and other social engineering attacks manipulate employees into clicking malicious links or providing sensitive information, which can lead to costly breaches. 

Phishing Email Example

Before the advent of AI-powered cyber attacks, business email compromise caused over $50 billion in losses. These days, a lot more security needs to be in place to safeguard sensitive information or organizations will face even greater losses. 

Implementing email security measures, such as DMARC and email encryption, can significantly reduce the risk of falling victim to email-based threats. Additionally, you should implement multi-factor authentication (MFA) for another layer of protection. That way, even if an attacker manages to steal credentials through phishing, MFA requires additional verification before access is granted, reducing the likelihood of unauthorized access.  

Proactive email security is not just a technical safeguard but also a business continuity measure. By protecting your email systems, you safeguard your business from downtime, financial losses, and reputational damage. 

How to calculate downtime related to the cost of cybersecurity for small business. One of the benefits of managed it services is that it reduces IT and cybersecurity costs.

Preventing Social Engineering Attacks

Social engineering attacks remain one of the most serious and evolving threats to businesses, with 98% of cyberattacks relying on human error. These attacks manipulate human psychology by employing tactics like phishing – which was responsible for 36% of data breaches in 2021. Another common technique is pretexting, which tricks employees into revealing sensitive information or granting unauthorized access to critical systems. 

Phishing Cheat Sheet Checklist Mockup

Strengthen your organization’s defenses against advanced cyberattacks, like ransomware, by elevating phishing awareness with these expert tips and actionable insights. 

To protect your business, fostering a strong cybersecurity culture is non-negotiable. Equip your employees with the tools to identify phishing attempts and enforce critical measures like multi-factor authentication and password best practices. Understanding common attack vectors and taking proactive steps will significantly reduce your vulnerability to these growing threats. 

How to Create a Cybersecurity Awareness Training Program Ebook

Learn how to implement an engaging and successful cybersecurity awareness training program.

Identifying Your Risk Profile

To effectively mitigate your business’s cyber risks, you need to start by understanding your risk profile. Knowing what assets are most valuable, the threats you face, and where your vulnerabilities lie allows you to prioritize your defenses and allocate resources more effectively. Here’s how to approach it. 

1. Conduct a Risk Assessment

Begin by identifying the most critical assets within your business, such as customer data, financial records, intellectual property, or any personal identifiable information (PII). Determine the threats these assets are likely to face—whether it’s data breaches, phishing attempts, or ransomware attacks. 

2. Evaluate Vulnerabilities

Understand the weaknesses in your current systems. These may include outdated software, lack of employee training, poor password management, or unmonitored devices. Consider engaging a third-party to conduct penetration testing to expose vulnerabilities that internal reviews may miss. 

3. Determine Potential Impact

Assess the impact of a potential breach. How would your business be affected if these assets were compromised or inaccessible? Understanding this impact helps prioritize which risks need to be addressed first. 

4. Create a Risk Mitigation Plan

Based on your assessment, develop a plan to address the most pressing risks. This plan may include tightening access controls, implementing multi-factor authentication MFA, regularly updating software, and ensuring you have secure backups. The goal is to reduce the chances of an attack and minimize damage if one occurs. 

Risk Profile Infographic

Why You Might Want to Consider Cyber Insurance

Approximately 83% of SMBs don’t have enough money set aside to recover from a cyber attack. In fact, 60% of SMBs that experience a cyberattack are forced to shut down within six months due to the overwhelming financial burden of recovery. 

Cyber insurance provides you with a safety net by covering costs such as:  

  • Downtime 
  • Data recovery 
  • Legal expenses 

     

In essence, it provides you with protection beyond traditional cybersecurity measures. 

The Cost of Cyber Insurance

On average, small businesses pay around $1,740 annually for cyber insurance – which is roughly $145 per month. Costs depend on factors such as the strength of your security measures, the size of your business, and the coverage needed.

How to Shop for Cyber Insurance

When shopping for cyber insurance, start by reviewing your existing policies to check for any cyber coverage. Work with a knowledgeable broker or attorney who understands cyber insurance and can help navigate complex coverage options. Focus on both first-party (e.g., data recovery, business disruption) and third-party protections (e.g., legal fees)​. 

Fill out the application carefully to ensure coverage won’t be voided due to incorrect information. After securing a policy, notify your insurer immediately if you detect a breach. For more details, check out this article on cyber insurance.

How to Detect and Defend Against Cyber Attacks

As mentioned earlier, identifying cyber threats is essential for any business’s success. For small to medium-sized businesses, the best approach is to use a layered defense, also known as defense-in-depth. This method integrates a range of tools and best practices to offer comprehensive protection. But before diving into these strategies, let’s take a moment to highlight a few key points. 

To effectively detect cyber threats, you need continuous network monitoring and complete visibility over your endpoints. These measures will allow you to quickly recognize and neutralize suspicious activity. 

However, cybersecurity is an ever-evolving field. What worked yesterday may not protect you tomorrow. That means that your cybersecurity measures must be able to adapt just as quickly as cybercriminals are. 

Regular software updates, security patches, and cybersecurity assessments are critical components of a robust strategy. It’s crucial that your IT team stays informed about the latest threats facing your organization. This knowledge helps them make necessary adjustments to your defenses and keep your business secure. 

So, where should you begin when faced with heightened cyber risks? Start by understanding the environment in which your business operates. 

Understanding Your Environment

It’s important to consider your company’s threat landscape, compliance requirements, and the sensitivity of the data you handle. Conducting a cybersecurity risk assessment or partnering with a third-party service for penetration testing will give you valuable insights into your security gaps. 

Building a Strong Defense

To effectively shield your business from today’s advanced threats, robust detection tools are essential. In fact, Gartner projects a 100% increase in organizations adopting Managed Detection and Response (MDR) services by 2025 due to the escalating complexity of cyberattacks. 

Starting with foundational solutions like Endpoint Detection and Response (EDR) and MDR, while leveraging advanced threat intelligence, ensures you stay ahead of the curve. These tools empower your business with real-time detection and proactive responses, safeguarding your operations from increasingly stealthy attacks. 

These tools offer real-time threat detection and provide a broader understanding of emerging threats. When used together, they form the backbone of an effective security program. However, it’s crucial that you have the foundational cybersecurity measures in place first. 

We recommend implementing EDR after: 

  • Conducting a thorough IT asset inventory 
  • Establishing security policies and procedures 
  • Providing monthly security awareness training

     

Then, implement more advanced solutions like MDR with a Security Operations Center (SOC) after you have: 

  • Implemented EDR 
  • Enforced password best practices 
  • Maintained frequent backups 
  • Used multi-factor authentication (MFA) 
  • Regularly update and patch systems

     

Lack the internal knowledge or budget for these solutions? Consider outsourcing your cybersecurity. 

Outsourcing Cybersecurity for Better ROI

When outsourcing cybersecurity, SMBs can achieve better return on investment by leveraging the expertise and tools a managed services provider offers. This approach not only reduces the need for costly in-house infrastructure but also allows you to scale your security efforts as you grow. Additionally, they can implement and manage all your cybersecurity measures for a predictable monthly fee.

Small Business Cybersecurity Cost Guide

Learn the financial impact of cyber threats on your business’s data. Plus, unlock the financial implications of in-house vs. outsourced cybersecurity. 

Outsourcing offers flexibility and ensures that you have access to the latest cybersecurity tools and best practices without needing to continuously invest in new technologies.  

Pro Tip: Be sure to thoroughly research IT service providers, as not all are created equal. You’ll want to verify that they can meet your business’s unique needs and will provide you with quick response times – which is a common challenge that many small businesses encounter. 

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Teal’s Comprehensive Cybersecurity Solution for SMBs

Choosing Teal as your Managed Service Provider means your small to medium-sized business will have access to a sophisticated blend of cybersecurity solutions and proactive management. Our services include: 

  • Endpoint Detection and Response (EDR) to identify and neutralize threats at the device level. 
  • Managed Detection and Response (MDR) with 24/7 monitoring by a dedicated Security Operations Center (SOC). 
  • Advanced Threat Intelligence to anticipate and defend against evolving cyber threats. 
  • Security Awareness Training to equip your team with the knowledge to identify and respond to attacks. 
  • Compliance Management to help your business meet industry regulations like HIPAA, CMMC, and NIST standards.

With a commitment to excellence and the highest industry certifications, Teal’s solutions ensure your business is protected by best-in-class security strategies and technology – all delivered through a seamless and professional client experience. 

Contact us today to learn more on how Teal can elevate your cybersecurity. 

Plan for the Worst

Even with robust cybersecurity defenses, it’s crucial to have a well-defined incident response plan in place to ensure your business is ready to respond swiftly when things go wrong. The reality is that no organization is immune to cyber threats. Reacting quickly can mean the difference between a minor inconvenience and a catastrophic breach. 

An effective incident response plan provides a clear framework for detecting, responding to, and recovering from cyber incidents.  

Incident Response Plan Steps

1. Identifying the Scope of the Incident

Determine what systems/data were impacted and isolate them to prevent further damage. 

2. Assessing the Severity

Categorize the incident based on its impact on business operations, data confidentiality, and compliance requirements. 

3. Coordinating Communication

Establish a chain of communication for both internal stakeholders and external parties like customers, legal counsel, and regulatory bodies. Have press releases prepared in advance so you don’t have to try to organize your thoughts during an incident. 

4. Executing Recovery Protocols

Follow predefined recovery steps to restore operations and validate that systems are secure before resuming normal activities. 

5. Documenting and Learning

Conduct a post-incident analysis to identify root causes and improve your plan for future threats. This includes updating your policies and procedures as well as communicating the findings to your staff.