Cybersecurity Basics for Startups: A Guide

Besides fierce competition, most startups have limited resources, meaning investing in cybersecurity may not be a priority.

As a result, cybersecurity often takes a back seat, as it's viewed as a LUXURY reserved for established corporations.

After all, who is bothered with a startup?

Regardless, cybersecurity is a great concern to any business that should be addressed, even by startups. Internet threats are commonplace for all companies, and small businesses and entrepreneurs are also vulnerable. In the event of an online attack or threat, the best solutions are activated to track down the perpetrator and stop any further damage.

Somehow, everyone will get hacked once in their lifetime. Hence, companies need to be aware of cybersecurity basics for startups. For this reason, we have put this guide together to help you understand what cybersecurity is, how to bolster defence, and ways to evade online threats.

Types of Cyber Security Threats Startups Face

The internet is here with us. Dependency on technology leaves businesses with no choice but to protect their data, which can be at high risk if not adequately concealed. As a result, companies, big or small, have measures in place to ensure data is protected and to keep hackers at bay.

But how can a startup achieve this? Is it expensive to install and maintain a system that guards a company's data and information?

Before addressing these concerns, let's find out the main types of cybersecurity threats startups can face:

External Threats

Most organisations face direct cyber attacks from external sources. However, external hackers can be kept away in several ways, such as updating software and installing inbuilt antivirus measures. Generally, these measures offer your business decent protection against any form of malicious hacking.

Internal Threats

Having staff in your startup who are untrained in the basics of cybersecurity and data protection poses a significant threat above external hacking. Although it's unintentional, basic knowledge like clicking on strange links, opening spam emails, losing a USB stick, or browsing unsafe websites exposes the company to great risks. Another source of internal threat is a disgruntled team member who can cause a major headache for a startup.

Other Types of Cyber Attacks

There's a wide range of cyber attacks a company can face, and here are some of the common ones:

Malware and Ransomware

Cybercriminals can install malicious software unsuspectingly on a computer system or device, and it is known as malware.

Ransomware is a type of malware that can lock out the rightful computer user and demand payment to unlock them. Mostly, the payment hackers demand after locking a computer is in Bitcoin or other forms of digital currency. WHY? Because it's untraceable, meaning you can't catch them. Sometimes, malware is concealed as spyware, which, instead of locking a user out of their computer, gathers sensitive data like passwords.

Phishing

Like 'fishing,' a phishing attack involves attackers casting a net online to lure users into divulging personal information and security details. Once hackers have this information, they can sell it or use it to steal personal identities.

Phishing commonly involves emails that appear legit at first glance since they bear company logos like banks. However, once you open these emails, personal information is harvested. Another variant of phishing is known as 'spear phishing.' It involves targeting individuals or specific groups through more personalised emails.

Distributed Denial of Services (DDoS)

DDoS is an attack directed at disrupting a company's websites and any online services they offer. When there's a DDoS attack, multiple computer systems are compromised through exposure to Trojans—a virus that overwhelms a website with web traffic. When a DDoS attacks a company, the web services are flooded with crazy traffic from messages or connection requests, resulting in a slowdown, crash, or complete shutdown.

Brute Force Cracking

Sometimes, cybercriminals attempt to use software tools that help them get the right passwords to a computer system. The trial and error method is known as "brute force cracking". The tool follows a systematic process through different combinations of characters in various sequences until they succeed.

Social Engineering

Social media platforms present a myriad of ways for malicious hackers to trick, exploit or coerce entrepreneurs or their employees into releasing sensitive data. To ensure your business is indestructible, it's essential to train your employees on the basics of cybersecurity.

Thus, when faced with any traps that can sabotage your business, they know how to handle it. A successful ambush to an organisation can wipe off its existence in a flash. However, don't fret because finding a way to block geeks guarantees safety for the company and clients.

The Importance of Cybersecurity for Startups

With startups increasing every other day, the danger of falling victim to cyber hackers is a reality. All businesses have valuable customer data, groundbreaking ideas, and user data that would put clients in harm's way if they fall into the wrong hands.

Cybercriminals find vulnerable systems enticing because they're easy to exploit for quick money. Here's why cybersecurity is important to startups:

1. Data Protection: Startups have sensitive data like customer information, financial data, and intellectual property. A violation of this data can lead to significant damage to a business, like damage to reputation, loss of revenue, and legal fines.
2. Compliance with Regulations: Depending on the nature of the business, startups are subject to various regulations concerning data protection and privacy. Failure to comply can result in legal consequences that will detriment a startup's finances.
3. Maintaining Trust: The world today is digital, meaning TRUST is fundamental. Any customer information and data stored by startups should be protected at all costs. A startup that can't protect customer data and information is at a loss. They lose customer trust, which is hard to regain.
4. Prevent disruption of Business: Cyber attacks can overwhelm a system, leading to downtime, system failure, data loss, and business disruption. Startups are fragile, and they often need more resources. They can't afford to waste time and money due to disruptions caused by hackers.

Cybersecurity Measures for Startups

The importance of cybersecurity for a startup can't be emphasised enough. To help protect your client's sensitive data, we have developed a step-by-step process about cybersecurity basics for startups. Let's dive in:

Conduct a Business Cyber Risk Analysis

Initially, you have to develop a plan to protect your digital assets.

There are multiple options to consider, and you should factor in vulnerability and defence for maximal data protection. While considering the different options, you must also assess the risks associated with each choice you make. Some of the risks include:

• System sabotage
• Data theft by hackers or disgruntled employees
• Examine your security posture
• Threat level
• System vulnerability
• These are likely weak areas where criminals can exploit

Use Firewalls

Every software you use in your small business needs an antivirus program to block malicious links and emails. Most software comes with built-in internet security and firewall features that help protect your networks and devices from threats.

Antivirus software and firewalls will protect your employees from downloading or accessing malicious links. The software protects employees by warning them before they access anything that can threaten or expose company data to fraudsters.

Having security measures in place from cloud security platforms bolsters the ability to detect and block different attacks, such as malware or phishing attacks.

Use Strong, Complicated Passwords

As you create a security culture, ensure each team member has a dedicated password for their network account. A dedicated password within the network ensures individuals can be tracked, making them accountable. In case of any errors or security breaches, you can easily identify whoever is responsible.

Passwords should be complicated or strong. How does that happen? Encourage your workers to use complex, unique, and hard-to-guess passwords. They should avoid using obvious words like a name, a sequence of numbers or letters. A strong password has numbers, letters(caps and small), and symbols. Cracking such a password is not a walk in the park, even for experienced technocrats.

Use Multi-factor Authentication

A password alone will not keep your accounts and data online safe.

Multi-factor Authentication (MFA) is a security measure that ensures access to your accounts only through multiple steps. An MFA system not only saves your password but also other ID details, and a notification must be sent to the user for verification.

So, anytime you log in, you'll not only punch in the password and access your data. NO. Accessing your accounts will involve multiple steps to ensure it's really you, such as checking some extra details. Hence, you shouldn't view the MFA for your accounts as bothersome; it is a smart move to keep your accounts safe. r than just relying on a password alone!

Regular Updates on Your Software

Prompt updates to your device drivers (computers, phones, tablets) will keep off potential attackers who might try to exploit system vulnerabilities.

Cyber fraud targets any weaknesses they can find, especially in outdated software. Attackers can take months or years to target a weak point, and once they find a window, they hit hard.

Software updates upgrade a system with better features and also fix existing problems. Thus, it's vital to take the lead and update antivirus software and hardware.

Antivirus updates protect devices against new viruses, while hardware updates boost your computing experience.

Create Secure Cloud Storage

Why is secure storage important? Secure storage adds a layer of protection to your data.

However, in the same way you control access to physical networks and devices, access to your cloud storage should also be restricted. As a result, only authorised users can access the data. Begin by reserving the cloud to store files that need frequent access, such as team projects.

If you're using any automation software, it easily integrates with cloud applications. Compliance automation software can help you gather evidence and comply easily. The software integrates your cloud apps while streamlining your security efforts to keep your data safe.

Educate Employees on Cybersecurity

Educate your workers on cybersecurity and common security issues they might face. To make it effective, you can use experts or government resources to help them understand cybersecurity threats and the best ways to counter them.

For instance, it's basic knowledge for your employees to know they can't click on any links or emails unrelated to work. WHY? Because such links can be phishing grounds or may carry malware.

Plus, you should have clear policies on what employees can access or not during work hours to avoid disrupting business. Alternatively, organising team member training materials will help educate your workers on the importance of cybersecurity.

Embrace a Security in Your Routine (CEO, CTO, IT)

Embedding a security-conscious culture in a startup is essential. This means that anyone who joins the business in the future will adopt values and a specific way to make daily decisions.

A startup founder intentionally crafts a culture that grows with the business and only gets better. Established companies like Google incorporated a security culture earlier in business, which has resulted in robust cybersecurity teams today. If you believe in your company's mission, it's crucial to showcase a commitment to security as a way to reinforce the notion.

When company founders dismiss security matters and policies, employees are likely to be lax. After all, if the leaders are not sensitive to security policies and ways to circumvent them, why should they? Right?

Besides leading by example, providing consistent cybersecurity training to workers offers the best of both worlds.

Monitor and Protect Your Network

Monitoring and protecting your network must be a top priority.

All the devices you use to access data in the cloud must be under a microscopic eye. How do you achieve this? Here are some practical tips:

• Install an antivirus software
• Have a detection system to weed out intruders to your security stack
• Use log management software to help keep a record of all activities related to your network.
• Invest in a compliance automation platform.

Prepare for Failure or Hiccups

Even after enforcing a strong data protection system, you must be prepared for failure.

Planning for failure doesn't mean you're welcoming it, but it does mean you have a strategy to counter any cybersecurity issues that may arise in the future. Most businesses prioritise the prevention and detection of cyber threats, neglecting remediation planning.

As a startup with limited resources, it might be easy to overlook cybersecurity, but it's a low-cost investment that's critical for your business. Planning for failure means you can anticipate trouble and are prepared to counter them whenever they arise.

The Impacts of a Cyber Attack on a Startup

Generally, a cyberattack fallout falls into three categories:

Data Protection

In the UK, the General Data Protection Regulation (GDPR) demands all businesses ensure any personal data is secure from cyberattacks. They advocate for the use of "appropriate technical or organisational measures". Failure to meet these requirements can result in financial fines from the Information Commissioner's Office (ICO) of up to £17.5 million or 4% of total annual turnover.

Damage of Reputation

A successful cyberattack can result in a substantial breach of sensitive customer data. As a result, customers will lose trust in the business, leading to damage to the business's reputation. Customers will only seek services or buy products from a company that has a good reputation for disclosing personal details or information to the right people.

Damage of Infrastructure

Today, most businesses' dependency on technology leaves them no choice but to protect their IT systems adequately, especially e-commerce companies. When locked out of your email, you can't work properly, and the disruption can damage infrastructure. In extreme cases, a company may have to restructure the entire IT system to weed out the hackers, which can be costly.

What to Do in the Aftermath of a Cyberattack

Once a startup suffers a cyberattack, the following steps will help restore normalcy:

1. Assess – find out the type of cyberattack and the scale of damage. Identify whether it was an external or internal hack. If it's an internal attack, investigate if it involves current or past workers.
2. Action – Seal any existing security loopholes, update softwares, and change passwords. In case of an internal threat, decide on the disciplinary action to take against the perpetrator.
3. Inform – the UK GDPR demands that you inform the ICO of any breach of sensitive data within 72 hours. It's also important to inform any relevant person, like customers, and reassure them necessary measures are in place to fix the situation.
4. Record – document and keep a record of the incident

Ways to Prevent a Cyberattack

Most cyberattacks are preventable. How? Is it costly? You can prevent general cyber threats by creating awareness in your team to help them identify potential attacks. Here are more ways, tips and tricks to do so:

• Auditing – Assess IT and data security regularly in your business
• Regular Updates – ensure that all software and hardware are up to date, especially operating systems like Windows
• Passwords – create long, complex passwords and activate the two-factor authentication process where applicable
• Encryption – use encryption wherever possible, especially to store sensitive data like personal information in databases
• Cloud working – invest in cloud services since they have excellent cybersecurity capabilities. Generally, working in the cloud is more secure compared to home or office networks
• Training – create awareness of the most common cybersecurity threats among your team members. The same knowledge can also be shared with workers through training sessions
• IT Policies – Create clear IT policies like data protection and define what employees can or cannot access in the workplace. You need policies like data protection and cybersecurity provisions for your staff and relevant contractors.

Challenges While Implementing Cybersecurity

Implementing cybersecurity in a startup takes a lot of effort, commitment, and time. Thus, if you want your business to thrive in these digital times, it's important to understand the challenges you may face during implementation:

Over-reliance on Working Remotely

Working remotely is becoming the new norm, and employees are facing new security challenges in their virtual offices. Cybercriminals can easily sneak in through the digital back door whenever there's a lack of awareness or laxity. Plus, people working remotely may not take serious measures to implement cybersecurity since it might appear unnecessary.

So, what's the best strategy for guarding your remote work? You can employ cloud-based cyber security services to keep your devices, identity, and digital cloud secure.

Misinterpretation of New Security Threats

The cybersecurity threat space is changing every day, and companies may need help to cope with the fast-paced changes. Although you may know the current security trends, you also need to be aware of new threats that may develop. With an IT team that's well informed to identify potential threats and ways to circumvent them, protecting your network will be easy.

Poor Security Protocol Efficiency Measurement

Inadequate security protocol efficiency measurement hampers the ability to scale security effectiveness. It also hinders progressive improvement in security practices. In this regard, the use of dashboards and relevant metrics is vital. Startups can address this issue by establishing efficient metrics, enabling them to assess the efficiency of security measures. Following the right protocol is key to shaping and boosting your cybersecurity strategies.

Implement the Bring Your Device (BYOD) Policy

BYOD policies help a company determine whether employees can bring their devices to work or not. Most companies have no issue with employees bringing their devices to work. However, this opens a window for some workers to go rogue regardless of what the BYOD policies dictate. What does a good BYOD policy include? Here are a few things:

1. Acceptable Use - What employees can do on their devices
2. Security Measures - The minimum security needed on the devices
3. Company Components - SSL certificates for device authentication
4. Company Rights - What's the company's responsibility for the device? Can the company wipe it clean remotely in case it's lost?

Form Your Company with Incorpuk Today

At Incorpuk, we will help you through the company formation process and file your confirmation statements to help your business stay compliant. Whether you're a UK resident or a non-UK resident, our team is ready to provide guidance and help you establish your company in the UK. Contact us here today.

Frequently Asked Questions

Where do I start as a cybersecurity novice?

The best place to start as a cybersecurity novice is to cover the basics of IT security and data protection.

Is coding necessary for a cybersecurity job?

Coding skills are optional for most entry-level cybersecurity jobs. However, when you advance to a professional, coding may be required to progress in the field.

Why do startups need cybersecurity?

Startups need cybersecurity because hackers don't discriminate against their victims. Hence, established corporations and startups face the same threat with cybercriminals.

In Summary

Cybersecurity for start-ups is non-negotiable. Thus, as soon as your business is running, especially ecommerce companies, cybersecurity measures should be in place. Understanding cybersecurity basics for startups is crucial to ensure the business operates smoothly by keeping cybercriminals at bay.

Although hackers can interrupt your business, dealing with them has a positive side. The continuous risk of facing hackers keeps a startup on its toes about cybersecurity. While you remain optimistic about identifying and handling cybercriminals, it's important to plan for potential challenges.

As the business grows, it's important to invest in a cybersecurity system that covers the entire company. Although cybersecurity can be costly, a startup must remember that hackers don't discriminate or choose their victims. However, installing the system can eventually save your business money and time if you fall victim.

Some cybersecurity fallouts include business disruption, data breaches, and legal penalties. If you compare these consequences to investing in cybersecurity prevention, the latter is a better business decision. Do you have any questions about Cybersecurity Basics for Startups? Kindly contact one of Incorpuk's experts here.