Small doesn’t mean safe: how SMEs are under attack

Australia’s 2.5 million small businesses are the heartbeat of our national economy and our largest employer, representing five million people and contributing $418 billion to Australia’s GDP.

By their very nature, small businesses are extremely vulnerable to cyber attacks, with 43 per cent of cyber criminals targeting small businesses. Additionally, these cyber criminals cast a wide net to find businesses with weak cyber security processes.

A grim reality

Data released by Cyber Wardens clearly shows the frequency and impact of threats to Australian small businesses are rising, as cyber criminals specifically target Australian small businesses.

Simple mistakes leading to a cyber attack include failing to install a software update in a timely manner, putting a computer in sleep mode instead of shutting it down, and sharing passwords with team members.Credit: iStock

The report reveals that a cyber crime is reported in Australia every six minutes, increasing by 23 per cent in 2023, with the average cost of cyber crime to a small business coming in at $46,000. Inbox break-ins, fake invoices and banking burglary are the top three reported cyber crimes.

The Cyber Wardens report reveals that a limited understanding of the frequency and significant impact of cyber attacks is holding small businesses back from protecting themselves. In fact, nearly four in five small business owners have everyday habits that inadvertently make them more vulnerable to cyber crime, says CEO of the Council of Small Business Organisations Australia (COSBOA), Luke Achterstraat.

“Many owners and employees don’t believe their small business could be a target, which is a dangerous fallacy leading to complacency. Their vulnerability is compounded by a prevailing but harmful belief that ‘it won’t happen to me’,” he says.

But even when small businesses see the value in embracing a culture of cyber security, they face several barriers.

“Many don’t know where to begin with cyber security, and feel overwhelmed by not knowing what steps to take. They don’t think that they have the time, resources and digital literacy to protect their businesses against cyber threats,” adds Achterstraat.

Simple mistakes include failing to install a software update in a timely manner, putting a computer in sleep mode instead of shutting it down, and sharing passwords with team members.

Locking your digital doors

A big part of the issue stems from a limited understanding of the frequency and impact of cyber attacks, which is ultimately holding small businesses back from protecting themselves.

Artificial intelligence, for example, is enabling scammers to mimic the language, tone and cadence of authorities, including the Australian Taxation Office, making it even more difficult to spot a scam.

“I’ve never met a small business owner who isn’t competent and capable of protecting their physical assets, such as their premises, their cars and other physical securities. But cyber security is often the last thing on the list and after a long day at work, it’s forgotten about,” Achterstraat says.

“In today’s challenging economic environment, it can be even harder for a small business to allocate resources to areas such as cyber security.”

Cyber safety culture

The need for a cultural shift and national thinking has led to the development of Cyber Wardens, which is a behavioural change program designed to embed a culture of cyber safety in every small business in Australia.

Launched in 2023, the national initiative from COSBOA is supported by the Federal Government and an industry alliance led by Telstra, CommBank and the Australian Cyber Security Centre to help protect SMBs from online threats.

“It’s critical that small business owners acknowledge the acute threat cyber crime poses, and lock their digital doors in the same way they would lock up their homes and businesses. The Cyber Wardens program gives small business owners and their staff the skills and understanding to protect themselves from cyber crime.

“Cyber Wardens is working to ensure Australia’s 2.5 million small businesses operate in a cyber-safe environment, as online scams and fraud continues to rise. Just like workplace safety officers help to keep their small business safe from physical hazards, Cyber Wardens will use the same skills to prevent and protect against digital threats,” Achterstraat says.

The fast, free online Cyber Wardens training course helps protect small businesses and their staff from cyber threats, and provides them with tips like upgrading passwords, implementing multi-factor authentication, backing up data and regularly updating software.

Stop scams, don’t get hacked. Help protect your small business from cyber threats with the quick and easy Cyber Wardens program, so you can get back to the business of doing business.

Visit cyberwardens.com.au for free small business cyber security online training.