Being a step behind is a strategy sure to produce failure. Unfortunately, it is the strategy that many small businesses rely on when they take a reactive approach to network, IT and security management. Reacting to the news that you have been hacked means that you start solving problems after you have incurred losses.
Small businesses are big targets for hackers and malware-enabled fraudsters. The average small business has more money flow through its computers and network than through its cash register. Small businesses process ACH transfers, execute credit card payments and even request wire transfers via email. These flows of money make small business computers and networks into targets.
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Since 2013, cyber-thieves have stolen over $800 million from more than 8,000 small businesses. One such business is Stuart Rolfe’s Wright Hotels. According to NPR, hackers broke into his network to monitor his company’s banking transactions. Once they understood how he sent wire transfer instructions to his bookkeeper, they started sending wire transfer instructions of their own. These hackers were savvy enough to execute their fraudulent transactions only when Mr. Rolfe’s calendar showed that he was in meetings; this way, they could intercept any requests for confirmation. By the time that Wright Hotels caught on, fraudsters had diverted more than a million dollars of the company’s money to China. Unfortunately, the regulation that requires banks to refund money stolen from consumer accounts does not apply to business accounts. If your small business bank account is robbed online, you are on your own.
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Theft of money is not the only concern for small businesses; theft of data can cause harm to a business’ reputation and leave a company with significant financial liability. Dealing with a data breach is expensive; you may be required to notify customers, suppliers and others whose data was lost. You may also be required to pay costs related to identity theft, or provide credit monitoring to those whose information was stolen. In 2014, Home Depot’s payment system was breached; the hackers stole millions of credit card numbers. As a result, the home improvement company had to pay $13 million to customers, and spend an additional $6.5 million to provide credit monitoring for the victims. These amounts are in addition to the cost of responding to multiple lawsuits.
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Managed IT security services can provide the proactive approach and effective infrastructure necessary to reduce your risk of an expensive network breach. Your managed IT services provider can analyze your network to identify and repair weak points; and offer patch management. The manufacturers of major operating systems frequently release patches for bugs and security holes. Applying these patches as they become available reduces your risk of being hacked. Your managed IT services provider can create a patch management plan to ensure that your systems are up to date and as secure as possible.
Your managed IT services provider can also provide 24/7 system monitoring and security management with an Intrusion Detection System (IDS). Continuous system monitoring provides an early warning in case your system is at risk of failure. An Intrusion Detection System notifies network security personnel when someone tries to hack your network, and gives them an opportunity to respond before anyone gets in. Security personnel can use this information to block the route that the hackers attempt to use and even temporarily block high-risk countries from accessing your network.
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Network security is a serious matter for small businesses. Hackers can create false financial transactions that rob your business of its hard-earned money or steal information that you are liable for. It makes sense to use a proactive IT services approach to reduce the risk of a security breach instead of just responding to them.