BTP – Page 2

Raising Awareness of Digital Risks: What Businesses Need to Know

Key Points:

Rapid technological advancement has led to new risks that businesses must now face.
There are many steps businesses can take to mitigate these risks, but they need to be aware of them first.
Ignoring these risks can lead to serious business consequences, including financial loss and reputational damage.

In today’s business world, technology is constantly evolving. This rapid change can be both a blessing and a curse for businesses. On one hand, new technology can provide businesses with new opportunities to grow and improve their operations. On the other hand, it can also lead to new risks that businesses must learn to manage. One of the most significant risks businesses now face is digital.

What Is Digital Risk?

Digital risk is the risk of loss or damage caused by technology. It includes risks such as cyberattacks, data breaches, and system failures. When your business scales, the attack surface area also increases. The larger your business, the more likely you are to be a target for criminals. However, this does not mean small businesses are immune to digital risks. Small businesses are often targeted. After all, they are seen as easier targets because they usually have fewer resources to dedicate to security. Digital transformation has changed how all businesses operate and has created new risks that need to be managed. Businesses must learn to manage these risks or be left behind.

What Are the Types of Digital Risks?

The complex nature of the digital risk landscape can make it difficult to identify all the risks your business faces. However, there are some common types of digital risks that businesses should be aware of, including:

Cybersecurity risks: Cybersecurity risks can be caused by weaknesses in your cybersecurity measures. This includes poor password management, unpatched software, and phishing attacks.
Data security risks: Data security risks can be caused by poor data security measures. This includes poor data management, insecure data storage, and data breaches.
Network security risks: Network security risks can be caused by weaknesses in your network security. This includes unsecured Wi-Fi networks, Denial of Service attacks, and man-in-the-middle attacks.
Compliance risks: Compliance risks can arise from not complying with regulations or industry standards. This includes GDPR compliance, PCI DSS compliance, and HIPAA (US) compliance.
Cloud security risks: Cloud security risks can be caused by weaknesses in your cloud service platforms. This includes insecure data storage, cloud service outages, and account hijacking.
Resiliency risks: Resiliency risks can be caused by failures in your ability to recover from an incident. This includes things like extended downtime, data loss, and reputational damage.
Third-party risks: Third-party risks can be caused by the actions of your business partners or vendors. This includes things like data breaches, system failures, and service outages.
Privacy risks: Privacy risks are risks to the privacy of your customers or employees. This includes things like identity theft and data leaks.

How to Manage Digital Risks

There is no one-size-fits-all solution to managing digital risks. The best approach will vary depending on the specific risks faced by your business. However, there are some basic principles that all businesses should follow when managing digital risks.

Define what digital risks are relevant to your business.
Assess the potential impact of each digital risk.
Put in place controls to mitigate the impact of digital risks.
Monitor and review digital risks regularly.
Communicate with all stakeholders about digital risks.
Be prepared to respond to incidents arising from digital risks.

By following these principles, you can ensure that your business is well-prepared to manage its digital risks. Digital risks are an increasingly important part of business in the modern world. Understanding and managing these risks can protect your business from potentially devastating impacts.

How to Mitigate Digital Risks

Given the complex nature of the digital risk landscape, businesses must take a holistic approach to manage these risks. Some steps that businesses can take to mitigate digital risk include:

Implementing strong cybersecurity measures: This includes things like two-factor authentication, data encryption, and intrusion detection.
Improving data security: Ensure adequate security measures are in place to protect your information.
Securing networks: Install proper security measures on your networks to protect them from outside threats.
Complying with laws and regulations: Familiarize yourself with the data security laws and regulations that apply to your business. Make sure you are taking steps to protect your customers’ data.
Improving resiliency: This means having a plan in place in case of a data breach or other incident, such as a power outage. You should have a backup plan for how you will keep your business running.
Working with trusted third parties: When you work with other businesses, make sure they have adequate security measures in place to protect your data.
Raising privacy awareness: This includes things like training employees on data privacy and implementing security controls.

There are different controls that businesses can put in place to mitigate digital risks. These can include technical controls, such as firewalls and intrusion detection systems, and organizational controls, such as policies and procedures.

What Role Do Risk Assessments Play in Digital Risk Management?

Risk assessments are an important part of managing digital risks. They help businesses identify their risks and implement appropriate controls to mitigate them. The most effective risk management strategies will usually involve a combination of both technical and organizational controls. There are several approaches to risk assessments, but all share some common elements.

Firstly, businesses need to identify the assets they need to protect. These include customer data, financial information, intellectual property, and company secrets. Once these assets have been identified, businesses need to identify their threats. These can come from external sources, such as hackers, or internal sources, such as employees who may accidentally or deliberately leak information.

Once the threats have been identified, businesses need to assess the likelihood of them happening and the potential impact they could have. This will help businesses prioritize the risks and put in place controls to mitigate them. Digital risks are constantly evolving, so businesses must regularly review their risk assessments and update their controls accordingly. This will help ensure that they are prepared for the latest threats and can continue to protect their assets effectively.

Wrapping Up

Digital risks are an inevitable part of doing business in the digital age. However, many businesses are still unaware of the potential risks they face. From data breaches and cyberattacks to reputational damage and loss of customer trust, digital risks to businesses are real and should not be ignored. Businesses must understand their digital risks and take appropriate measures to protect themselves. This includes ensuring that their data is secure, their online reputation is managed effectively, and their customers’ trust is not compromised.

While there are steps you can take to mitigate these risks, it’s important to remember that there is no single silver bullet. The best approach is to take a comprehensive and proactive approach, implementing multiple layers of security and constantly monitoring your systems for vulnerabilities. Now is the time to start if you’re not already taking steps to protect your business from digital risks. Cyberattacks are becoming more sophisticated and widespread, and the consequences of a breach can be devastating. Don’t wait until it’s too late – take action now to protect your business.

How Do Phishing Scams Work?

You may have heard of the term “phishing,” but you may not be completely aware. If you operate a business or even conduct any kind of transactions online – which represents the majority of people – you may be susceptible to a phishing attack. When executed correctly, a phishing attack can leave you or your business in major personal or financial trouble.

In this post, we’ll dive deeply into defining a phishing scam, understanding the common traits, and identifying the various types of scams. Finally, we’ll look at what you can do to prevent a phishing attempt from disrupting you or your organization.

What is a Phishing Scam?

A phishing scam starts with a hacker or malicious actor reaching out to you. These individuals are looking to access information that you hold. To gain access to this, they’ll attempt to contact you (usually by email, but it can also be via phone or text) with a message prompting you to click on a link.

These scams use social engineering tactics compelling you to comply (more on those below). Once you or someone within your organization clicks the link, it may then upload destructive malware or viruses to your device, system, or network. This malware then provides them access to your personally identifiable information (PII), financial information like credit card numbers, or other information you don’t want falling into the wrong hands.

How a Phishing Scam Works

As noted above, phishing scams use social engineering tactics to trick recipients into complying with a requested action. Hackers will pose as an institution the individual knows or trusts to gain their trust.

For example, let’s say you receive an email from your bank asking you to log in to your account due to a problem. At first glance, the email may appear legitimate as it contains your bank logo and a similar font. But have your bank ever contacted you in this way before? The answer is likely no, as banks don’t ask you for information like this over email.

Everything from the email address the hacker uses to the language they use in the email might appear legitimate. That’s why it’s important to examine them carefully and err on the side of caution.

The Common Traits of a Phishing Scam

Every phishing attempt looks different, but they tend to have some traits in common across attacks. For one, email phishing attacks prompt you to click a link within your email.

Additionally, many attacks attempt to create a false sense of urgency. They’ll say there’s an issue with your account or suspicious activity that you’ll need to log in to resolve. This is, of course, a ruse meant to create a feeling of panic in the recipient. The hackers are banking on you, reacting without thinking.

Other phishing scams mimic or recreate an email address for a friend or family member. Have you ever gotten an email from a family member that contained a link but didn’t look right? It was almost certainly a phishing attempt.

You may also get an email from what you believe to be a trusted source, like your employer or healthcare provider. If the email looks suspicious, it likely is. Your default stance should always be to follow up with the sender to confirm the email’s legitimacy.

It bears repeating: if anyone asks you for any type of sensitive information over an email, text, or phone, you’re probably on the receiving end of a phishing attempt.

The Different Types of Phishing Scams

While phishing attempts happen over email, similar attacks happen over phone or text. Email phishing scams involve you clicking on a bad link. The other types of scams have different tactics with the same desired outcome for the hacker.

In the case of phone attacks (also known as vishing), you’ll receive a call from someone asking you to relay personal information over the phone. You may even be prompted to dial a specific number. These attackers often spoof numbers from trusted institutions like your bank. They might tell you that a friend or family member needs assistance to increase your feeling of urgency. They can also ask you to verify personal information to authenticate your identity to them – when, in fact, they’re stealing the information themselves.

Another common phishing scam is attacks conducted over SMS text messages (also known as smishing). These operate similarly to email attacks. You’ll receive a text from someone or some institution you trust asking you to click on a link.

How to Respond to a Phishing Scam

The first step is to be aware that phishing scams exist. Knowing what they might look like helps you know what to watch out for. If you are part of an organization, create this culture of awareness with your team. By educating your staff on what to expect, you’ll be able to prevent them from impacting your business in the future.

But what happens when you do receive a phishing attempt? The most important action you can take is this: nothing at all. Don’t interact or engage with a phishing attempt. If it’s a text or email, don’t click the link. If you’re on the phone with someone attempting to scam you, don’t engage – simply hang up as soon as possible.

Phishing Scams are Growing Increasingly More Common

In summary, phishing scams tap into sophisticated social engineering techniques, using people’s fears to gain access to sensitive information. This information can then be used to defraud the person or organization financially or steal their identity. They can be carried out over email, phone, or text message. When you get a phishing attempt, the best action is no action. Don’t engage – just block and delete.

The sad reality of phishing scams is that they aren’t going away anytime soon. You can’t prevent them from happening. All you can do is maintain awareness and constant vigilance of an attack possibly occurring. Be wary of emails that look suspicious and even those that don’t – as phishing strategies become more complex, you’ll be more likely to fall prey to one. Exercise utmost caution when communicating with anyone over email, phone, or text.

Contact us today for more on how we can help your organization navigate phishing attempts or provide other managed IT services.