How to Manage Identity Theft Problems for Startups?

According to the 2020 report, The Hidden Costs of Cybercrime, realized by CSIS in collaboration with McAffee, the cost of data breaches has been on an upward trend lately. Plus, the business sector is not the only one hit by cyberattacks. The healthcare industry lost an estimated $25 billion in 2019 due to ransomware attacks! 

Cybercrime takes many forms (ransomware, phishing, data leaks, ID theft) and is projected to get to about $10.5 trillion/year in global costs by 2025. 

Why Is This Happening Now?

The current wave of cyberattacks was boosted by the pandemic when more businesses had to switch to remote working without having the time to make all the preparations. But the trend was moving upward even before lockdowns and restrictions. 

The fast development of new technologies and the accelerated use of online transactions (e-commerce and online payments) attracted the attention of many ill-intended actors. Therefore, the new cyberthreats are more clever and more difficult to identify.

If you take a look at some ID theft examples you’ll see there’s more to this crime than just stealing the personal data of an individual. ID theft can just as well hit a business, and it’s especially damaging for startups. 

Cybercriminals tend to target small businesses and startups because there’s always a chance they don’t have the budget or knowledge to implement a solid security system. Sadly, even though it can put quite a dent in your budget, cybersecurity is not something you can ignore, regardless of your size. 

Still, there are a few things you can do to stay safe without breaking the bank (especially if you are a bit tech-savvy). 

How to Be Safe as a Startup

We know it’s difficult to find room in your budget, but if you want to build a solid foundation, you need a solid cybersecurity system. Here are the top three tips and methods that will help you stay safe and keep any prying eyes away from your sensitive data:

#1: Passwords, Passwords, Passwords

Yes, at the end of the day, everything resumes to the type of passwords you’re using. If an attacker manages to go through all the layers of security you have in place, they mustn’t be able to overpass your passwords!

Use complex passwords, without adding any personal or common names into the mix. Also, don’t use the same password twice and never write them down! Plus, it helps to use a secure password manager. 

If you already have a team, implement a well-detailed password policy that requires employees to regularly change theirs (once every 90 days, for instance).

#2: Two-factor Authentication (2FA)

All important accounts (online banking, e-commerce stores, emails, cloud service, and others) should use a 2FA system. This means that another device will be involved in the authentication process (usually your smartphone or a token). 

It’s basically a way of making sure that you’re the only person who can access your account. With 2fa, you’ll be asked for two pieces of information when you log in: username and password. And then, if someone tries to log in from another device or location, they’ll need both – your username and your password to access your account.

So, if someone manages to break your passwords, they still won’t be able to gain access to your account. 

#3: Regular Checkups & Backup

Out of date software leaves the door open for various cyber threats, which is why specialists keep insisting on updating your apps, operation systems, and other tools. To make sure this aspect is under control, it’s best to assign the task to a trustworthy employee and ask them to perform a checkup every month. 

Also, make a habit of doing regular backups that you store on physical copies, away from any internet-connected device. This way, in case your database has been breached or you get locked out of your own devices (as it happens with ransomware), you can wipe everything down and start over. 

Bonus Tip

Given the number of successful cyberattacks in the last couple of years, many business owners decided to invest in cybersecurity insurance. This can serve as a safety net, just in case something goes horribly wrong and your security is breached.

Wrap Up

Security systems and devices are important, but they are only one side of the coin. Your employees represent the other side. So, if you want to improve your startup’s security, invest in your employees’ education on topics of cybersecurity and technology. Once they understand the importance of following a specific protocol and keeping their systems safe, it will be a lot easier to avoid any problems.