In a recent conversation on the Driven by DCKAP Podcast, I spoke with Luis Ruesga, Chief Executive Officer of Zuo Modern, and he emphasized how technology has been a game-changer for his company. From AI-powered content creation to customer portals that let you track your sofa order in real-time, technology has transformed how his business operates and interacts with customers. Listening to Luis reminded me of another crucial side of this story: the need for cybersecurity.
Technology helps us grow, but it also opens doors to risks. Whether you’re running a small eCommerce store or managing a nationwide operation, ignoring cybersecurity can be a costly mistake. Let’s talk about why investing in cybersecurity is just as important as investing in new tech; and how it can save your business in the long run.
The Rising Threat of Cyberattacks
As more businesses move online, cyber threats are growing, targeting everything from customer data to critical business systems. Cyber-criminals are becoming smarter, using tools like artificial intelligence to hack systems and steal data. According to a report, 54% of organizations have an insufficient understanding of cyber vulnerabilities in their supply chain.
Even 64% of executives who believe that their organization’s cyber resilience meets its minimum requirements to operate say they still have an inadequate understanding of their supply-chain cyber vulnerabilities. The big percentage is a wake-up call.
Imagine losing access to your systems because of ransomware or having sensitive customer information leaked online. These technical problems are events that can damage your reputation, lose customer trust, and hurt your bottom line.
Why Should You Care About Cybersecurity?
- It Protects Your Reputation
Customers trust you with their data. A breach can break that trust in an instant. Having strong cybersecurity measures shows your customers that you take their privacy seriously. - It Keeps Your Business Running
Cyberattacks can shut down your operations. Downtime means lost revenue and unhappy customers. Cybersecurity ensures that your systems stay safe and your business stays operational. - It’s Not Just for Big Companies
Many small businesses think they’re too small to be a target, but that’s not true. Hackers often see small businesses as easy prey because they assume these businesses don’t have strong security in place.
Simple Steps to Improve Cybersecurity
If you’re feeling overwhelmed, don’t worry. Improving your cybersecurity doesn’t have to be complicated. Here are some practical steps:
- Train Your Team: Most cyberattacks start with human error, like someone clicking on a phishing email. Teach your employees how to recognize and avoid these traps.
- Use Strong Passwords: It sounds basic, but strong, unique passwords are a simple way to keep hackers out. Tools like password managers can help.
- Update Regularly: Software updates often include fixes for security vulnerabilities. Keep your systems up-to-date.
- Enable Multi-Factor Authentication (MFA): MFA adds an extra layer of security by requiring a second form of verification, like a code sent to your phone.
- Back-Up Your Data: Regular backups ensure that you can recover quickly if something goes wrong.
The Cost of Cybersecurity vs. The Cost of a Breach
You might think cybersecurity is expensive, but the cost of not having it is much higher.
Compare that to the cost of investing in basic cybersecurity tools and training, it’s a no-brainer.
The average cost of a data breach across all sectors was $4.88 million, so healthcare breaches were twice as expensive as the average of all industries. The financial sector has the second most expensive breaches, at $6.08 million, and the industrial sector ranked third, with $5.56 million.
Trello, a task management software, experienced a security breach in January 2024 exposed over 15 million user records, including emails, usernames, and full names. Hackers exploited a public API, costing Trello significantly in terms of customer trust and the expenses required to secure their platform afterward
The global average cost of a data breach in 2024—a 10% increase over last year and the highest total ever. On the bright side, companies using AI and automation for security saved about $2.22 million compared to those who didn’t. But there’s a growing risk with generative AI; only 24% of AI projects are secured, exposing sensitive data. The good news is that preparing for breaches can make a big difference.
Cybersecurity is like insurance. You hope you never need it, but you’ll be glad you have it when you do. These examples make it clear that investing in cybersecurity is about avoiding financial loss and protecting your operations, your customers’ trust, and your reputation. When breaches happen, they’re not just costly; they can disrupt entire industries, halt production, and leave customers questioning their loyalty. The right cybersecurity measures can save your business from chaos, turning what might seem like a cost today into a lifeline when it matters most.
What We Can Learn from the CrowdStrike and Microsoft Incident
The CrowdStrike and Microsoft server outage serves as a cautionary tale. A software update caused widespread disruptions, leading to the infamous “Blue Screen of Death” (BSOD) on countless systems. While the issue was isolated to CrowdStrike users on Microsoft platforms, it revealed how one weak link can affect global operations.
The messaging around this incident also offered lessons. While Microsoft’s statement was brief, CrowdStrike’s CEO George Kurtz provided detailed communication, showing the importance of transparency in crisis management.
This event highlights the need for vigilance, not just in our systems but also in how we communicate during crises.
Preparing for the Worst
Technology enables us to accomplish incredible things, but we must also prepare for when it fails. Here are some ways to build resilience:
- Diversify Dependencies: Relying too heavily on one provider (e.g., Microsoft, Google) can leave you vulnerable.
- Plan for Downtime: Have contingency plans in place to minimize disruptions during outages.
- Encourage Offline Readiness: Occasionally disconnect from tech to test your ability to function without it.
The Future of Cybersecurity
As threats evolve, so must our defenses. Here are some trends shaping the future of cybersecurity:
- AI in Cybersecurity: While hackers use AI to innovate attacks, defenders use it to detect and neutralize threats faster.
- Zero Trust Security: This approach assumes no one can be trusted by default, enforcing strict access controls.
- Cyber Insurance: More businesses are investing in policies to mitigate financial risks from cyberattacks.
A Call to Action
Cybersecurity is a technical as well as a business issue. Whether you’re a small business owner or part of a large corporation, now is the time to take cybersecurity seriously.
Investing in cybersecurity is like investing in your business’s future. It protects your data, your customers, and your reputation. More importantly, it gives you the confidence to embrace new technologies without fear.
If you’re looking for a starting point, focus on training your team, securing your systems, and staying informed about the latest threats. And remember, cybersecurity is an ongoing process.
Let’s build a future where innovation and security go hand in hand. Because in today’s world, you can’t afford to have one without the other.
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