Top 5 Data Security Challenges Facing Small Businesses

Top 5 Data Security Challenges Facing Small Businesses 1

Although the advancement in technology comes with several benefits to businesses, it also comes with challenges. Hackers can use the technology to damage your business. While you might think that only big companies can face data security challenges, small enterprises are also at high risk.

A common belief for small business owners is that their businesses are too small to be targeted by hackers, but, unfortunately, that’s not the case. Small businesses can also face cyber security threats, just like large businesses. For instance, back in 2019, about 10% of small businesses were reported to face hack, virus, and data breach, revealing how small businesses are vulnerable to cyber security threats.

The advancement in new technologies makes it easier for hackers to target all kinds of businesses. Small businesses have become vulnerable to data security threats because most of them are less aware of these, have less stringent technological defenses, or have insufficient resources to help deal with cyber security challenges. Even if that’s the case, with a little knowledge about cyber security solutions, small businesses can protect their data from external intruders whose main aim is to steal or hack the company’s information.

This article has explained the top data security challenges facing small businesses you should be aware of. Understanding them will help protect your business against cyber security threats. Read on.

Top 5 Data Security Challenges Facing Small Businesses 2

1.Phishing Attacks

Phishing attacks are the most common data security challenges facing small businesses. They account for more than 90% of all security threats that companies face. In this type of cyber security attack, hackers pretend to be someone you know or trust. They can pretend to be your business partners or banking institutions. They approach you using familiar, but slightly altered email addresses.

What these hackers do is send you a malicious link that directs you to a website. After logging in to that website, you’ll be asked to provide your personal details, such as your bank and social security details.


In recent years, ransomware has become one of the most common data security challenges affecting thousands of small businesses each year. In this case, hackers encrypt the company’s information so that no employee can access that information, forcing the company to pay a ransom to unlock the company data. Failure to do so will lead to a loss of the company data.

Businesses can prevent ransomware attacks by having strong endpoint protection across all business computing devices. This will make it almost impossible for attackers to encrypt the company’s data.

3.Cloud-Based Threats

With an increase in the use of the Internet, the number of people using cloud services for personal or business needs has also increased. Although cloud computing has shaped and positively impacted how businesses operate, it also exposes businesses to data security challenges.

Hackers use cloud computing platforms to steal data from companies. Small businesses can overcome cloud-based threats by paying attention to the proper cloud storage configuration.

4.Insider Threats

While you might think that small businesses only face external data security challenges, there’s a high chance of data security threats arising from within the company. An insider data security threat is a risk caused by someone who’s aware of all the business processes. This person can either be an employee or a former employee of the company. These people may intentionally hurt the business, or it can happen out of negligence or ignorance.

Insider threat is a growing data security challenge that can affect the business in different ways. Apart from affecting employees or customers, it can cause a huge financial loss to the company.   This challenge can be solved by installing specialized tools to keep a check on insider data security threats. You can use those tools to detect unauthorized logins or access company information by new devices on restricted networks.

5.Internet Of Things Devices

Internet of things (IoT) devices are used to communicate information without the involvement of a real person. While most businesses have integrated IoT into their systems to make work easier, it also exposes the business to cyber security threats.

As the company’s information passes through the IoT devices, more and more hackers are beginning to target these devices.  For instance, although the Internet of medical things can help collect someone’s health information, hackers can steal the information through the Internet of things technology.


As you’ve seen above, there are many data security challenges facing small businesses. You can safeguard your business against these challenges by installing comprehensive security tools and educating your employees about cyber security awareness to know them and know how to protect the business against them.

Written by Srikanth

Passionate Tech Blogger on Emerging Technologies, which brings revolutionary changes to the People life.., Interested to explore latest Gadgets, Saas Programs

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