When you own a business, you need to know absolutely everything there is to know about it so you can make the best decisions for the business. That includes identifying the business’s biggest weakness. This then allows you to focus on that weakness so that the business can grow, and you can achieve your business aims.
A lack of security is one weakness a business can suffer and can have a devasting impact. Below is a look at the importance of making security in a business a priority, at different ways to strengthen security and at the consequences of not tightening up security in your business.
Prioritizing security
Cyberattacks are on the rise, and hundreds of thousands are taking place across the globe, which is why businesses worldwide are doubling down on security. A single cyberattack can cost tens of thousands of dollars.
Cyberattacks aren’t the only problem you have to worry about. Small businesses can encounter a wide variety of frauds, including check tampering (which security checks can help to protect you against), payroll fraud, revenue skimming, invoice fraud and compensation fraud, to name but a few. Such an avalanche of attacks on small businesses is also causing them to ramp up their security against these frauds.
Improving security for small businesses
Fortunately, you don’t have to feel helpless against fraud and cybersecurity attacks. Here are some ways to protect yourself against them:
Learn everything about your customers and know who they are
Most customers will do business with you in good faith, but some may try to leave you out of pocket. Using false details, fake currency, or someone else’s identity to obtain goods or services are some of the ways malicious operators may try it. Learn who your customers are, check they are who they say are, if you’re in doubt, and keep your eye open for suspicious orders.
Train staff to be security aware
Building the security awareness of staff is crucial. If they understand the value of security, they’re more likely to try to protect your business. They can help you detect threats earlier and take preventive action. Importantly, they’ll make fewer make mistakes that could compromise the security of the business, and the chances of them becoming unwitting accomplices of wrongdoers are also lower.
Know your employees
You don’t have to actively mistrust your employees, but merely make sure you know them. References and background checks are a straightforward way to check you’re recruiting someone who doesn’t have a track record of being malicious. You can also create an antifraud policy, which lets internal fraudsters know the business won’t tolerate this damaging behavior. Build controls and checks into processes to reduce the risk of employees stealing valuable assets.
The consequences of poor security in a business
Successful cyberattacks can especially damage your business, as a hack can leave your business reputation in tatters. If you have robust cybersecurity, customers will trust you more and feel safe doing business with you, whereas if you don’t… A hack not only damages your reputation, but also places your customers at risk. If cyberthieves steal their information, they can then use it to get in touch with your customers and try to commit fraud against their business too.
Poor security can cause massive financial losses and even kill a business altogether. Existing resources can come under a heavier burden, and lenders may take into account the business’s security issues and be less willing to loan the business money. The lack of security can cause company morale to plummet, with staff feeling hurt of even foolish for having trust the fraudster amongst their midst.
As a small business owner, protecting yourself against fraud, online and offline, is paramount. Falling foul of fraudsters will have a nasty impact on your business and could even destroy it all together, so allocating some of the business budget to security is a must.
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