Small businesses are prime targets for cybercriminals—and the financial fallout can be severe.
In 2024, The FBI’s Internet Crime Report revealed that:
- Cybercrime losses soared to $16.6 billion, marking a 33% increase from the $12.5 billion reported in 2023.
- Phishing and spoofing generated over 193,000 complaints.
- Business Email Compromise (BEC) accounted for $2.77 billion in losses.
- Cryptocurrency-related fraud surged by 66%, reaching $9.3 billion in losses (Reuters).
Experts stress that 1 in 2 small businesses are now targeted by cyberattacks,
up from 1 in 5 several years back. Source MRT.com
Why Business Owners Should Care
Cybersecurity isn’t just an IT issue—it’s a business issue. Every day, small business owners are exposed to financial, reputational, and legal risks due to preventable security lapses. In 2024 alone, small businesses were increasingly becoming the easiest targets due to limited resources and security oversight.
Here’s why it matters to every business owner:
- Financial Risk: A single phishing attack or ransomware incident can cost thousands in recovery fees, lost revenue, and legal fines. For businesses operating on thin margins, a breach could mean shutting down operations.
- Client Trust: Your clients trust you with sensitive financial and personal data. If that trust is broken due to a security breach, regaining their confidence—or keeping their business—can be difficult, if not impossible.
- Compliance Requirements: Data protection regulations like GDPR, CCPA, and PCI-DSS aren’t optional. Failing to secure customer data can result in penalties and legal action.
- Vendor Vulnerabilities: Even if your business takes precautions, one weak vendor link can expose your entire operation. Business owners must vet their service providers, especially those handling payroll, bookkeeping, or customer data.
- Reputation Management: News of a data breach spreads fast. One incident can impact your brand for years.
Reality Check
For HireEffect’s clients, safeguarding financial information is a critical part of doing business—not just an added responsibility. We treat cybersecurity as essential as cash flow, payroll, and taxes.
“The more layers of security you have, the safer you’re going to be,” says Chris Scott, HireEffect’s resident technology consultant. “Also, reducing application access and turning on notifications can be beneficial.”
For example, setting notifications saved a client from scams. One of their internal employees was compromised and an external party accessed the account and created additional vendors. Then they entered real looking bills and was about to pay them. But the notifications tipped off the firm and we were able to stop it before any money went out the door.
Scott then shared a variety of software applications the company uses to help secure client information, including:
- QuickBooks Online
- Melio
- Ignition
- Synder
- Gusto
- Avalara
5 Smart Security Best Practices for Clients
Protecting your business doesn’t require a full-time IT department—just a commitment to a few smart, practical habits that significantly reduce your risk, including:
1. Build a Baseline of Protection
- Implement firewalls, anti-malware, and intrusion detection systems.
- Use cloud-based storage with strong encryption and frequent backups.
2. Credential Management
- Adopt password managers like Dashlane or LastPass to generate and store complex passwords securely.
- Enforce multi‑factor authentication (MFA) on all accounts.
3. Employee Training
- Launch annual security awareness programs covering phishing simulations, password protocols, and safe data handling.
- Ensure staff understand and follow policies around file sharing, disposal, and physical access.
4. Incident Response Planning
- Develop and document a Cybersecurity Incident Response Plan (IRP) including clear roles and procedures.
- Conduct periodic drills to test readiness.
5. Vendor Security Audits
- Assess third-party providers for their cybersecurity measures—do they patch systems, encrypt data, and monitor for breaches?
- Consider contract clauses addressing their security responsibilities.
Action Checklist for Clients
In addition to the items below, download the Cybersecurity Incident Response Plan Template to begin documenting your plan.
| Task | Importance |
| Update and patch all software | Prevent exploits via known vulnerabilities |
| Use password manager + MFA | Prevent unauthorized access |
| Provide employee security training | Reduce risk of mistakes and phishing |
| Audit vendors’ security | Avoid indirect threats |
| Have a tested incident response plan | Ensure fast, coherent action during a breach |
| Back up data securely and regularly | Enable recovery and minimize disruption |
Proactive Cyber Hygiene
Cyber threats don’t discriminate by size and small businesses are attractive prey. But with proactive cyber hygiene—strong credentials, employee training, vendor diligence, and a response strategy—you can greatly reduce risk.
At HireEffect embedding these practices isn’t just good operational sense—it’s an essential part of protecting clients and reinforcing a reputation for integrity in an increasingly digital world.
Contact us if you would like to discuss proactive cyber hygiene.