Fraudsters nowadays are targeting small businesses, companies, organizations, and sometimes banks, but startups, especially startups are a prime target because of their low security implementations and limited resources to secure a business. Larger corporations, on the other hand, have everything that they need to keep their businesses safe.
The question is, how can a small, new startup save itself from fraud? Well, there are some specific measures that startups can take to keep their data safe, users, and reputation without breaking the bank. Let’s talk about them.
1. Cloud Storage
Cloud storage services are cheaper than other services, so startups choose to rely on these – offering built-in security features but many businesses fail to configure them properly, leaving the data exposed to various cyber threats and cybersecurity issues, which leads to unauthorized access and various data leaks, and it is your responsibility to implement the right security settings to protect the data.
2. Strong Password Management
Passwords without any special symbols or numbers are considered very weak and are suggested to be changed immediately because weak passwords are a common entry point for fraudsters. Many individuals tend to reuse the same passwords across multiple platforms, making it very easy for fraudsters to gain access to those platforms.
Best Practices for Password Security:
- Require passwords to be at least 12 characters long with a mix of special symbols and characters.
- Implement MFA.
- Encourage employees to use password managers.
- Regularly update passwords.
Manage passwords and secure the startup from the risk of credential-based attacks.
3. Employee Training
The well-known phrase is that your employees are your first line of defense against cyber threats. If your employees have the experience and know about the potential of cyber threats, the most effective fraud techniques could be ineffective, and the human error percentage can go as high as 90, being responsible for the security breaches. This is why employee training is an essential component of the startup’s security strategy.
Cost-Effective Ways to Train Employees:
- Conduct free online cybersecurity courses on platforms that you can find online.
- Create phishing awareness programs to help employees learn to identify phishing and unusual emails.
- Develop clear security policies regarding password management and software downloads.
- Simulate security attacks to test employee responses and improve awareness. The test could be a phishing email (fake one).
Regular training sessions ensure that employees and the team as a whole are prepared for any attack from fraudsters.
4. Identity Verification Service
The easiest and most effective way to improve security is to use an identity verification service, which verifies user identities – the must-have solution for every company out there – ensuring that only legitimate users and customers, as well as employees who are joining the company, can access the platform, reducing the risk of fraud and unauthorized access.
Benefits of Identity Verification Software:
- Prevents Fraud: Verifies the authenticity of individuals.
- Improves Trust: Users feel more confident among each other.
- Reduces Compliance Risks: Regulatory requirements are met easier, for example KYC and AML.
Use identity verification solutions to strengthen authentication processes.
5. Updated System and Software
Fraudsters can easily exploit vulnerabilities that are created through outdated software, as they know that such systems contain known security issues and can be easily manipulated, which is why it is important to keep it updated as soon as the new update appears. The assurance of keeping your software and system updated might sound simple, but sometimes, it can be hard to keep track of the new updates, but it is essential.
How to Keep the Systems and Software Secure:
- Enable automatic updates for operating systems and security tools.
- Patch vulnerabilities by regularly checking for security updates from software vendors.
- Use reputable antivirus software to detect malware and remove it.
- Uninstall unused applications to reduce potential attack surfaces.
Stay on top of software updates because it prevents many cyber threats and keeps the startup’s software secure.
6. Protection by Firewall
Firewall – a barrier between a business’s internal network and external threats. Many startups think that firewalls do not secure anything and are unnecessary or simply expensive, but that is wrong and not the case, as this misconception can leave businesses open to cyberattacks. If the firewall system is configured correctly, it can easily detect malicious software and activity and block it instantly.
Affordable Firewall Security Options:
- Use free or low-cost firewalls which you can find online.
- Built-in firewalls do their job perfectly in operating systems.
- Limit the internal data to only necessary personnel.
These solutions help detect and prevent threats using the firewall.
7. Regular Security Audits
It does not matter if the startup has 10 or 100 security measures implemented; regular security audits are always necessary to identify vulnerabilities before exploitation. Necessary improvements can be made before an actual breach occurs, and additionally, the company can check if it has any security issues.
How to Perform a Cost-Effective Security Audit:
- Use free vulnerability scanning tools which you can find online.
- Check access controls to ensure only authorized personnel can view sensitive information.
- Make tests to check weaknesses (could be ethical hacking).
- Review security logs for unusual activities.
Regular audits will allow you to stay compliant.
8. Data Backup Plan
Imagine that the business has lost all its data, whether from cyberattacks or maybe a hardware failure, and there is no way to recover it because no backups have been made before. Sounds bad, right? Well, that is why businesses have to do backups of their data. Having a backup and recovery plan ensures that businesses can quickly recover their data.
Best Practices for Data Backup:
- Use the 3-2-1 Rule: Keep three copies of your data, stored in two different medias, with one offsite copy (e.g., cloud storage or a physical place, but not the workplace).
- Do Regular Backups
- Check Backups Periodically
- Consider Cloud-Based Backup Solutions
Conclusion
Expensive – the word that startups are using when implementing new security measures. But it does not have to be. Cost-effective strategies can help you protect your startup from cyber threats and fraudulent activities. All of this while staying within budget. Prioritize security and it will help you build your startup.
