Cybersecurity for Small Business on a Budget

Small businesses are prime targets for cybercriminals. You have valuable data but often lack the security resources of larger companies. The good news: most cyber attacks are preventable with basic security practices that cost little or nothing.

This guide covers essential cybersecurity measures every small business should implement, with a focus on free and low-cost solutions.

The Real Cyber Threats to Small Business

Understanding what you're protecting against helps prioritise your efforts.

The Essential Security Basics (Free)

1. Strong, Unique Passwords

Weak and reused passwords are the most common vulnerability. Use these rules:

• Minimum 14 characters (longer is better)
• Unique password for every account
• Mix of letters, numbers, symbols (or use a passphrase)
• Never reuse passwords across sites

2. Multi-Factor Authentication (MFA)

MFA adds a second verification step beyond your password. Enable it on:

• Email accounts (highest priority)
• Banking and financial services
• Cloud storage and file sharing
• Social media accounts
• Any account with sensitive data

Use authenticator apps (Google Authenticator, Microsoft Authenticator) rather than SMS when possible - they're more secure.

3. Keep Software Updated

Updates patch security vulnerabilities. Enable automatic updates for:

• Operating systems (Windows, macOS)
• Web browsers
• Office software
• Antivirus/security software
• All business applications

4. Secure Your Email

Email is the most common attack vector. Protect it by:

• Enabling MFA (non-negotiable)
• Training staff to recognise phishing
• Using email filtering (most providers include this)
• Verifying payment requests by phone
• Being suspicious of urgent or unusual requests

5. Regular Backups

Backups are your insurance against ransomware and data loss. Follow the 3-2-1 rule:

• 3 copies of your data
• 2 different storage types (e.g., local + cloud)
• 1 copy off-site (cloud or physical location)

Test your backups regularly - a backup you can't restore is worthless.

Free Security Tools

Protecting Specific Business Assets

Your Website

• Use HTTPS: Free via Let's Encrypt (most hosts include this)
• Keep CMS updated: WordPress, Shopify, etc.
• Strong admin passwords: And limit admin accounts
• Regular backups: Before any updates
• Remove unused plugins/themes: They're attack vectors

Customer Data

• Collect only what you need: Less data = less risk
• Encrypt sensitive data: Especially payment info
• Limit access: Not everyone needs access to everything
• Secure disposal: Delete data you no longer need

Mobile Devices

• Require screen lock: PIN, fingerprint, or face
• Enable remote wipe: If device is lost/stolen
• Install updates: Same as computers
• Only use trusted apps: Official app stores only
• Avoid public WiFi: Or use a VPN

WiFi Networks

• Change default passwords: On your router
• Use WPA3 or WPA2: Never WEP
• Separate guest network: For visitors and IoT devices
• Hide your network name: Optional but adds a layer

Employee Security Training

Your staff are both your biggest vulnerability and your best defence. Train them to:

Recognise Phishing

• Check sender email addresses carefully
• Hover over links before clicking
• Be suspicious of urgency and threats
• Verify unexpected requests through another channel
• Report suspicious emails immediately

Practice Safe Browsing

• Only download from trusted sources
• Look for HTTPS before entering credentials
• Don't plug in unknown USB drives
• Be careful with email attachments

Handle Data Safely

• Lock screens when leaving desk
• Don't share passwords
• Use secure file sharing (not email for sensitive files)
• Clear confidential documents from printers

Creating a Simple Security Policy

Document your security expectations. A basic policy should cover:

What to Do If You're Breached

Despite best efforts, breaches happen. Have a plan:

Immediate Actions

1. Contain: Disconnect affected systems, change compromised passwords
2. Assess: Determine what happened and what's affected
3. Preserve evidence: Don't delete logs or emails
4. Report: ACSC (ReportCyber.com.au) and police if criminal

Notification Requirements

Under the Notifiable Data Breaches scheme, you must notify the OAIC and affected individuals if:

• Personal information is involved
• The breach is likely to cause serious harm
• You couldn't prevent serious harm

Recovery Steps

1. Restore from clean backups
2. Reset all passwords
3. Review and improve security controls
4. Communicate with affected parties
5. Document lessons learned

When to Invest in Professional Help

Some situations warrant professional cybersecurity assistance:

• You handle sensitive data: Health, financial, legal
• You've had an incident: Professional response and investigation
• Compliance requirements: Industry regulations
• Growing complexity: Multiple locations, many systems
• High-value targets: Intellectual property, trade secrets

What to Look For

• Experience with small business clients
• Relevant certifications (CISM, CISSP, etc.)
• Clear, jargon-free communication
• Practical recommendations within your budget

Security Budget Guide

Monthly Security Checklist

Key Takeaways

• Start with basics: Strong passwords, MFA, and updates prevent most attacks
• Use free tools: Password managers, built-in antivirus, free training
• Train your people: Staff are your first line of defence
• Backup religiously: Follow the 3-2-1 rule
• Have a plan: Know what to do if you're breached
• Layer your defences: No single measure is enough
• Consider insurance: For the attacks you can't prevent