Running a small business in Australia means dealing with multiple things at the same time, be it managing customers, stock, and finances.
Due to your tight schedule, you might have put cyber security aside.
However, here’s the thing: cybercrime is a real and growing issue for businesses like yours, and it’s not just the big corporations that are in the firing line.
In fact, the average cost of cybercrime for Australian small businesses increased by 8% in 2024, according to the Australian Signals Directorate’s (ASD) Annual Cyber Threat Report for 2023-24.
This just shows that a single cyber incident can disrupt your operations and cost you a fortune.
Don’t wait for the worst to happen.
Dive in with us and learn about the basics of cyber security for Australian small businesses.
Why Should Small Businesses Care About Cyber Security?
You might be thinking: ‘I’m a local café or tradie, so why would hackers bother with me?’
This is the reality: small businesses are prime targets with around 43% of cyberattacks in Australia hitting small and medium-sized businesses (SMBs).
Why? Because small businesses often have fewer resources to secure their systems, making them an easy mark.
According to the Australian Cyber Security Centre (ACSC), 48% of SMBs spend less than $500 annually on cyber security, leaving them vulnerable to growing cyber threats.
Here’s what’s at stake:
- Financial Loss: Based on the report by ACSC, cybercrime costs small businesses an average of $49,600 per incident.
This financial hit can be devastating for businesses with limited resources, often leading to prolonged downtime or lost customer loyalty. - Reputation Damage: A breach can erode customer trust, especially if personal data and sensitive information are leaked.
Imagine losing loyal clients because of a preventable hack. - Business Disruption: Ransomware, a common threat, can lock you out of your systems, halting operations for days or weeks.
The ASD noted an 11% rise in ransomware attacks in 2024.
These may sound complicated and overwhelming, but you don’t need to be a tech wizard to protect your business.
A few straightforward steps can make a difference.
5 Simple Cyber Security Steps for Australian Small Businesses
Have a go at the essentials of cyber security that any small business can tackle, no matter your budget or tech know-how.
1. Train Your Team to Spot Threats
People are often the weakest link in cyber security, not because they’re careless but because cybercriminals are clever.
Phishing emails, where hackers trick you into clicking dodgy links or sharing sensitive information, are a top threat.
The Office of the Australian Information Commissioner (OAIC) found that 30% of data breaches were due to human error.
What can you do, then?
Run regular training sessions to help staff spot phishing emails or suspicious messages. Use platforms, such as KnowBe4, for interactive exercises, or check out free resources from the ACSC.
Pro Tip: You can test your team with fake phishing emails to see how they respond. It’s a great way to reinforce good habits without the real-world risk.
2. Use Strong Passwords and Multi-Factor Authentication (MFA)
Weak passwords are like leaving your front door unlocked.
MFA adds an extra layer of security by requiring a second form of ID (e.g., a code sent to your phone).
You can also enforce strong, unique passwords with at least twelve characters, mixing letters, numbers, and symbols.
Quick Tip: Don’t forget to enable MFA on all critical accounts, be it your email, banking, and cloud services. The ACSC says MFA can stop most basic attacks in their tracks. It’s a simple, low-cost way to boost security.
3. Keep Your Software Updated
Outdated software is a hacker’s dream, as it often has known weaknesses they can exploit.
The ASD recommends regular updates as part of its Essential Eight Framework, a set of baseline security practices for all businesses.
To do this, turn on automatic updates for your operating systems, apps, and antivirus software.
If you’re using old devices that no longer get updates, consider upgrading.
Additionally, set a monthly reminder to check for updates on all devices connected to your business network.
4. Back Up Your Data Regularly
If ransomware strikes, a backup can be your lifeline.
It lets you restore your data without paying a ransom, which is never a guaranteed fix anyway.
You can back up critical data, including customer records and invoices, weekly to an external hard drive or secure cloud service.
Never skip on testing your backups as well. This can ensure that they work.
5. Create an Incident Response Plan
Even with the best precautions, breaches can happen. That’s an unfortunate reality.
However, a clear plan can help you act quickly to limit damage and get back on track.
Draft a simple plan outlining who to contact like your IT provider or the ACSC hotline at 1300 CYBER1, how to contain the issue, and steps to recover.
Assess and evaluate your plan using a mock scenario.
The Role of Cyber Insurance for Small Businesses
Cyber security isn’t just about prevention, it’s also about being prepared for the worst.
Cyber Insurance can help cover costs, such as legal fees, customer notifications, and lost income, if a breach occurs.
With the increase in cyberattacks, having a policy in place can be a smart move.
Here’s what Cyber Insurance can do for you:
- Cover Financial Losses: From ransom payments to business downtime, Cyber Insurance can ease the financial losses.
- Support Recovery: Many policies include access to IT experts and PR support to manage the fallout.
- Meet Compliance Needs: With Australia’s Privacy Act tightening in 2025, Cyber Insurance can help cover fines if you’re found non-compliant after a breach.
Not sure where to start?
As your insurance broker. A broker can guide you to a policy that fits your business size and budget.
Emerging Cyber Security Trends in 2025
Cybercrime doesn’t stand still, and neither should your approach.
Here are a few trends to watch out for in 2025:
- AI-Powered Attacks: Hackers are using artificial intelligence (AI) to create smarter phishing emails and deep fake scams.
It’s important to always stay vigilant and double-check unusual requests. - Ransomware Evolution: The ASD’s 2023-24 Cyber Threat Report notes ransomware is getting more aggressive, with “double extortion” tactics where hackers steal data before locking it.
- Tighter Regulations: The Privacy Act and Security of Critical Infrastructure Act are ramping up requirements for data protection.
Non-compliance could mean costly fines, so review your practices now.
How to Get Started Today
Feeling overwhelmed? Don’t be.
Cyber security is about taking small, consistent steps to protect your business.
Here’s a quick checklist to kick things off:
- Assess Your Risks: Identify what data you store (e.g., customer details, payment info) and where it’s most vulnerable.
- Implement the Basics: Start with passwords, MFA, and updates. These are simple steps that can give your business significant protection.
- Talk to Your Broker: Contact an insurance broker to explore Cyber Insurance options that suit your needs.
- Stay Informed: Bookmark the ACSC website (cyber.gov.au) for free guides and alerts tailored to small businesses.
Act Now
Cyber security might not be the most exciting part of running a small business, but it’s one of the most important.
With the growing threat and cost of cybercrime, now’s the time to act.
By following these simple steps and considering Cyber Insurance, you can protect your livelihood and keep your customers’ trust.
As your insurance broker, our team at Tank Insurance is here to help you navigate the world of cyber security and insurance.
Want to chat about your options or need a hand getting started? Reach out to us today and read our blog.
Let’s keep your business secure in 2025.
