Top Cyber Risks for Small Business & How to Spot Them

Imagine your business comes to a grinding halt because hackers have locked your files, drained your bank account, or tricked you into paying a fake invoice. This isn’t a ‘big business’ problem, small businesses are just as vulnerable.

In fact, the Australian Cyber Security Centre reported nearly 94,000 cyber crimes in 2022–23 — that’s one every six minutes. For small businesses, the average cost was a staggering $46,000.

So, what is cyber risk, and how can you spot it before it disrupts your business?

What is Cyber Risk?

Cyber risk is the likelihood of loss or disruption to your business due to cyber threats such as phishing, malware, or ransomware.

It’s associated with events that can result in data breaches, financial losses, or operational downtime.

The Cost of Cybercrime for Business

According to the ASD Cyber Threat Report 2022–23:

• Small businesses lost on average $46,000 per cyber incident.

• Medium businesses lost around $97,200.

• Large businesses averaged $71,600.

 The Top 3 cyber crimes for Business were

• Email compromise

• Business email compromise (BEC) fraud

• Online banking fraud

Top Cyber Threats you need to Know

Scam Messages and Phishing Attacks

Scam messages may come through email, text messages, phone calls or social media and their purpose is to trick you into:

• Sending money or gift cards

• Clicking on malicious links

• Giving away sensitive information such as passwords or credit card details

Phishing often involves fake websites designed to capture passwords in order to take over social media accounts or hold data to ransom.

Business Email Compromise (BEC)

BEC involves using email to trick businesses into paying fake invoices. Scammers may hijack a supplier’s email account or use a domain name that looks very similar to the real one.

Common signs of BEC include:

• Urgent requests for payment

• Notifications that bank account details have changed

Read more on protecting your business from BEC.

Malware

Malware, short for Malicious Software, is software such as ransomware, viruses, spyware and trojans, designed to cause harm.

Malware can steal or lock the files on your device, steal your bank account details, credit card numbers and take control of and spy on your computer.

Malware is often spread by infected websites, unsafe downloads, or malicious email attachments.

Ransomware

Ransomwareencrypts your files and demands a ransom to unlock them.  In the worst case scenario a business can lose ALL of its data.

See the ACSC’s advice on recognising ransomware attacks Australian Cyber Security Centre

How to Protect Your Business from Cyber Risks

The Australian Cyber Security Centre (ACSC) provides a helpful Small Business Cyber Security Guide with practical steps to reduce risk.

Also, check out our article on creating a cyber risk management plan to start building resilience into your business operations.

Need some help?

Cyber risks are real, but with the right protections, you can keep your business safe.

If you need support with business planning, governance, risk management, or compliance, Elouise from Ellevate Solutions is here to help you.

Book in a call with Elouise today.