A guide by Mastercard
As small businesses increasingly embrace the digital economy, the threat of cybercrime has grown exponentially, exploiting vulnerabilities that are often difficult to guard against—particularly human error. According to TransUnion, 69% of South African consumers reported being targeted by online, email, phone, or text message fraud attempts in the last quarter of 2023, resulting in significant financial losses. Additionally, the South African Computer Society (SACS) found that 70% of small businesses in South Africa have been targeted by cyberattacks, underscoring the importance of cybersecurity awareness.
While the digital age opens new growth opportunities, it also heightens their exposure to a rapidly evolving array of cyber threats. Days like Cyber Security Awareness Month which was in October, offer a timely reminder to small business owners to fortify their defences against cyber threats, especially as high-traffic shopping events like Black Friday and the festive season approaches—periods when cybercriminals are most likely to strike. Cybersecurity involves safeguarding systems, networks, and data from digital attacks aimed at stealing sensitive information, extorting money, or disrupting business operations.
A report by Kaspersky ranked South Africa as the sixth-highest country globally in terms of cyberattacks, with 28% of small businesses reporting incidents. The financial consequences of a cyberattack can be devastating, and in some cases, forcing a business to close its doors, leading to job losses, an increase in unemployment, and debt. Therefore, understanding the nature of these threats is crucial for survival.
The most common cyber threats affecting small businesses between 2022 to mid-2023 include phishing schemes, malware designed to steal data or gain backdoor access to systems, and ransomware to encrypt or exfiltrate data and hold it hostage. Small business owners must be vigilant and proactive in combating these threats.
To help small business owners navigate the complexities of cybersecurity, here are five essential strategies:
- Prioritise employee training: Employees are the first line of defence against cyber threats. Ensuring that staff are trained to recognize phishing emails, use strong passwords, and follow basic cybersecurity protocols is essential. Several free training programs, such as LinkedIn cybersecurity courses, are available to small businesses. Additionally, Mastercard, in collaboration with Cyber Readiness Institute, offers a free Cyber Readiness Program equipping small business owners with the tools to protect against today’s most common cyber vulnerabilities. The Global Cyber Alliance, supported my Mastercard, also offers free cybersecurity courses for small businesses. Additionally, the Mastercard Trust Center provides free cybersecurity, education, resources, and tools designed to help small businesses secure their digital ecosystem.
- Follow safe password standards and use two-factor authentication: Passwords are the first line of defence against cyberthreats, and therefore, following safe password standards helps to keep your business’s data, devices, networks and servers safe. Learn more: Creating Strong Passwords & Two-Factor Authentication
- Regular software updates: Using outdated software, systems, and devices can put businesses at high risk as it allows cyber criminals easy access to sensitive company and customer data through unpatched vulnerabilities. Setting up automatic updates will help you update software, systems, and devices as soon as updates are available. This is a simple yet effective measure to reduce exposure to threats. Learn more: Software Updates & Business Security.
- Invest in antivirus software: Every small business should deploy and maintain antivirus software across its devices. This software acts as a critical barrier, detecting and neutralizing harmful code. Caution should also be exercised with USB drives, as they are commonly used to spread malware.
- Backup data safely and securely: Data is the backbone of any business, and the importance of regular, secure backups cannot be overstated. Whether due to cyberattacks, hardware failures, natural disaster, or human error, data loss can result in severe financial implications. Encrypting backups, controlling access, and storing them in secure offsite or cloud environments ensures that a business can recover swiftly in the event of an attack Learn more: Protecting Your Business Data with Backups.
- Strengthen Wi-Fi security: An unsecured Wi-Fi network can provide hackers easy access to sensitive information. Businesses should use strong, unique passwords, enable network encryption, and regularly update their Wi-Fi security settings to minimize this risk.
In today’s digital era, cybersecurity is no longer a luxurious add-on—it is a necessity for the survival of South African small businesses. By implementing proactive cybersecurity measures, small businesses can protect their operations, employees, and customers from the ever-evolving landscape of cyber threats.
Mastercard is a proud National Partner of the NSBC.