A Guide From Mastercard
In today’s digital age, data is the lifeline of any business—big or small. It drives decision-making, strategic planning, and customer engagement. However, as the reliance on data grows, so do the risks of breaches and cyberattacks.
As we step into the new year, small and medium enterprises (SMEs) must prioritise cybersecurity in their business strategy. With limited resources and technical expertise, small businesses are especially vulnerable to cyber threats, making it essential to place data security at the forefront of their agenda from the start.
In South Africa, the Protection of Personal Information (POPI) Act underscores the growing importance of safeguarding data. This legislation requires businesses to secure personal information in their possession through reasonable technical and organizational measures. Non-compliance with the POPI Act can result in severe penalties, including hefty fines and imprisonment.
The stakes are high. According to Accenture’s Cost of Cybercrime Study, 43% of cyberattacks globally target small businesses, often leading to many failing. In South Africa, the average cost of a data breach for small businesses is approximately $2.78 million—a potentially devastating amount. Beyond financial losses, a data breach can erode customer trust, tarnish a business’s reputation, and jeopardize its future.
Mastercard recognises these challenges and has developed a suite of security solutions tailored for small businesses. Through its Mastercard Business Risk Assessment and Mitigation(BRAM) program, Mastercard offers tools and resources to help businesses manage risks and comply with data protection regulations, including the POPI Act. Additionally, Mastercard provides educational support to empower businesses with the knowledge and skills needed to safeguard their operations.
Five essential data protection tips for small businesses
Here are five essential tips to help small business owners protect their data and mitigate potential risks:
- Install and regularly update software solutions: Cost-effective software can protect work equipment like laptops and computers from cyberattacks. Regular updates ensure systems are fortified against evolving threats. Many of these tools come with user-friendly and step-by-step installation guides that eliminate the need for IT support, further reducing costs for the business.
- Install firewalls: Firewalls act as a strong line of defence that small businesses can use to prevent unauthorized access to business networks while allowing legitimate communications. They are critical for safeguarding sensitive business data and mitigating cyber risks.
- Control data access and system permissions: To maintain the security of organizational data, limit access to sensitive data based on each individual employee’s role and responsibilities, granting access strictly on a need-to-know basis. This minimizes the risk of unauthorized access and ensures organizational data remains secure.
- Implement multi-factor authentication: Using a two-step authentication provides an additional layer of protection against hacking attempts. Tools like Microsoft Authenticator offer simple yet effective verification methods to secure sensitive information from hackers.
- Enhance email security: Install email security software to scan all incoming emails for malware. This proactive measure helps safeguard sensitive information and maintain operational integrity. Small business owners should reach out to their payment processors for guidance on suitable malware protection software tailored to their business needs.
Data security is not optional—it is essential for small businesses navigating today’s digital landscape. With the increasing threat of cyberattacks and the legal obligations under regulations like the POPI Act, small businesses must take proactive steps to secure their data, maintain customer trust, and ensure long-term success.
With companies like Mastercard providing robust security solutions and resources, small businesses can confidently secure their data, their customers, and their reputation.
Mastercard is a proud National Partner of the NSBC