Why Cybersecurity Is a Must-Have for Digital Age Startups

IMB's Cost of Data Breach Report 2022 found that 60% of data breaches forced organizations to increase customer prices. This knock-on effect is precisely what startups must avoid when developing their business. While global news stories about cyber attacks on multinational corporations often frequent the media, unfortunately, this doesn't mean that startups are safe.

So, why should small and midsize businesses (SMBs) pay more attention to cybersecurity?

Attacks on startups can lead to bigger breaches.

In this digital age, many startups are entirely cloud-based; while this makes logistical sense, this also means that all of their valuable data and assets are 'online' and, therefore, susceptible to compromise.

SMBs may naively believe that hackers will have little interest in them due to their lower net worth, but sometimes it's not about money. Ransomware attacks on startups often aren't worth it for hackers; however, what SMBs lack in cash, they make up for in customer data. 

One type of cyber attack using startups as entry points is supply chain attacks. Hackers will target a startup working with a larger enterprise within a supply chain and infiltrate the startup's network, gaining access to valuable data belonging to the larger corporation. SMBs must execute strong cybersecurity measures from the outset, as 84% of organizations believe supply chain attacks will increase in the next few years. 

Did you read about the recent LastPass breach? LastPass is attacked constantly because of how many customers they serve and the passwords they maintain. The only thing more sensitive to passwords is the data that those passwords protect, and that’s exactly what is stored in a startup’s cloud environment!

Grow your reputation as a security leader.

According to PwC's global survey, 85% of consumers wished there were more companies they could trust with their data. Therefore, an astute way for startups to attract new customers is by promoting their stance on cybersecurity. SMBs can build trust with their clients by informing them on how they protect their valuable data. Trust leads to loyalty, which is vital for any startup. 

Furthermore, customer loyalty is more important than attractive prices. Business News Daily supports this concept as their report showed that 65% of a company's sales come from returning customers. 

While it's unlikely that consumers can list companies known for their strong stance on cybersecurity, ask them to list companies known for data breaches, and they are likely to name a few. Yahoo or Facebook, to name two. It takes years to build a reputation and seconds to destroy; startups need to avoid this bad press to succeed. 

Embed security into the business core.

Developing security strategies early on within a business helps to future-proof it. Startups are uniquely positioned as they often still need to establish dangerous security habits or bad practices. A preventative approach is superior to fixing issues later. 

The 2022 Verizon Data Breach Investigation Report found that workers caused 82% of data breaches. Therefore, to avoid human errors, businesses should provide comprehensive cybersecurity training to employees to preempt classic attacks, such as phishing emails. 

Startups can develop their teams and policies by emphasizing the importance of initial security measures. For example, SMBs can install the principle of least privilege within teams or establish a development security and operations (DevSecOps) team from the outset, which could save vast amounts of money and time. 

Implementing a solid cybersecurity strategy is a savvy business decision for any startup. And, nowadays, cybersecurity doesn't need to cost the earth, meaning it is not out of reach for startups on a tight budget. It's time for SMBs to avoid the stereotype of being young and naive regarding cybersecurity; by implementing a solid approach, they can protect their assets and market longevity.