Ransomware attacks are a risk that all small businesses face in today’s technological age. Without adequate security and regular backups, your data could be at risk of a cyber-attack. Large corporations and major institutions with highly valuable data are the common targets of cyber infiltration, but small businesses (and in fact anyone using the internet) are not beyond their reach. There are a multitude of code-nasties out there ready to bring financial and reputational disaster to a small business.

What’s the danger?

Cyber-threats can exist under a number of guises. Attacks designed to overload systems for example, by flooding a website with more requests than it can handle. This kind of attack was reportedly behind the failure of the Australian Bureau of Statistics’ site during Census night in 2016.

Software viruses, worms, ransomware and Trojan horse attacks can also lock users out of their own systems, take control of networks, hack websites, steal data and even destroy hardware.

These attacks are designed to infiltrate computers, websites or networks through their weak spots. The Goldeneye attack in late June 2017 was particularly distressing, because it could have been avoided with an available software patch. The attack exploited a known vulnerability in Microsoft software and mostly affected organisations that had delayed installing the fix.

As Australian businesses embrace all that the digital marketplace can offer, protecting internal systems, customer data, financial data and intellectual property is critical.

What’s at stake?

For smaller businesses there is a great deal to lose if you or your suppliers are attacked. Some of the top risks are:

• Damage to reputation: if your customers or suppliers are given cause for concern about the security of your business systems, it can be difficult to win their trust back, ultimately leading to loss of revenue;
• Penalties: fines and again, adverse publicity, can hit you hard if the privacy laws are breached because private or commercially sensitive customer or supplier data is leaked or stolen;
• Loss of trade: having your business systems out of action, even for a day, can be extremely costly; and
• Negative customer experiences: customers can be sympathetic about cyber-attacks, but if they need to go to a competitor for a service or product, they will.

Even if your own systems haven’t been directly affected, you can still be impacted by attacks that hit other companies or organisations linked to your business.

Despite the risks, cyber security is an area that many small businesses overlook or give insufficient attention to.

What should you do?

So, how can you protect your business? We’re not IT experts, but we do have some helpful tips to secure your system from cyber-attacks.

• Ensure your software is up to date. Don’t put off installing updates.
• Get adequate virus protection software and ensure all updates are installed.
• Password protect your network and don’t allow others to connect to it. Most networks can create a guest subnetwork which is a safer option if others require access to the internet while in your place of business.
• Engage a third party to filter your emails. This will reduce the number of malicious emails that get through to you.
• If you do receive any suspicious looking emails, don’t open it or click on any links. Permanently delete the email ASAP.
• Ensure your passwords are strong and not easily discoverable.
• Use two-step authentication wherever possible.
• Back up your data on a daily basis on a separate device that ideally is not connected to your network (eg. a portable hard drive).
• When using portable devices, don’t connect to unknown or unstable networks.

It is strongly recommended that you enlist the services of an IT professional to ensure your data is secure and test your cyber-security measures.

Financial benefits

We’ve focused on the financial loss risks of cyber-attacks so far; so how about some good news? Outlaying your business with up-to-date hardware and software and bolstering your systems come with some financial incentives, too! For example:

• Asset costs: The costs of some business assets can be claimed as a tax deduction in full in the year of purchase, and others can be depreciated over a number of years under the simpler depreciation rules for small businesses.
• Commercial website costs: Website maintenance and modification costs incurred by businesses can be tax deductible. Talk to us about assessing whether your website-related costs are deductible.

The end of financial year is approaching quickly, so get in touch with us to find out how you can maximise your deductions and enjoy cyber and financial security. It’s a win-win!