The holiday season brings joy, excitement—and unfortunately, it also attracts cybercriminals. As online shopping surges and businesses gear up for the busiest time of the year, cybercriminals see an opportunity to exploit the holiday rush. Whether you’re managing online transactions or brick-and-mortar stores, staying vigilant about cybersecurity is essential.
Ever since 2013, when Target experienced a major data breach leading to the theft of 40 million credit card records, shops and stores have been keenly aware of the risks to their businesses While this incident happened to a large corporation, small businesses face similar threats. The holiday season’s increased activity makes businesses more vulnerable to cyberattacks.
This guide offers practical cybersecurity tips to help small business owners protect themselves from cyber threats during this busy season.
Why the Holidays Are Prime Targets
According to the 2022 and 2023 Retail Holiday Trends Reports from RH-ISAC, several factors make the holiday season an attractive time for cybercriminals:
- Increased Traffic: More people shopping online increases the chances of encountering phishing attempts or malware infections.
- Busy Employees: Employees, distracted by the rush, may accidentally click on suspicious links or overlook security protocols.
- Higher Data Volume: Increased transactions and customer data during this time create more opportunities for hackers to steal sensitive information.
Common Holiday Cyber Threats
Here are some common cyber threats that small businesses face during the holiday season:
- Phishing Attacks: Scammers send fake emails or messages posing as legitimate sources, such as delivery companies or banks, to trick you into revealing login credentials or clicking malicious links.
- Credential Stuffing: Attackers use lists of stolen usernames and passwords to access accounts. This can be especially dangerous if you or your employees use passwords across different platforms.
- Distributed Denial of Service (DDoS) Attacks: Cybercriminals flood your website with traffic, causing it to crash and preventing authorized customers from making purchases.
- Gift Card Fraud: Fraudsters purchase gift cards using stolen payment information or exploit vulnerabilities in gift card management systems to steal funds.
According to the 2023 Consumer Sentinel Network Data Book from the Federal Trade Commission (FTC), there were more than 48,800 reports of gift card fraud, resulting in $228 million in losses. This highlights the importance of securing all aspects of your business, including gift cards.
Building Your Holiday Cyber Defenses
Here’s how to protect your business and customers from cyberattacks during the holidays:
1. Strong Authentication: Encourage employees and customers to use longer passwords and enable multi-factor authentication (MFA). This will help guard against phishing attempts and credential stuffing attacks.
2. Denial of Service Protection: Communicate with the vendor hosting your website and evaluate their DDOS protection offerings. Some ecommerce packages come with this by default, so you may already be protected.
3. Use Gift Card Fraud Prevention Software: Many point-of-sale systems offer add-ons or features that can help detect and prevent fraud, such as scanning for duplicate or counterfeit gift cards.
4. Monitor Third-Party Vendors: Ensure that any third-party vendors you work with have strong cybersecurity processes. A data breach at one of your vendors can compromise your business, so ask about their security measures before doing business with them.
5. Back Up Your Data: Make regular backups of your data and store them securely. In case of a ransomware attack, having a backup allows you to restore your systems quickly without paying a ransom. Use cloud services or external hard drives for backups.
6. Educate Your Employees: Your staff plays a critical role in defending against cyber threats. Short training sessions will help employees recognize phishing attempts, avoid clicking suspicious links, and follow security best practices.
7. Consider Cyber Insurance: Cyber insurance can cover the financial losses caused by a cyberattack, including recovery expenses, legal fees, and business interruptions. The FTC provides guidance on what to consider when purchasing cyber insurance.
Reporting Cyber Incidents
If your business suffers a cyberattack, act quickly:
- Report to Law Enforcement: Contact your local law enforcement or report the incident to the FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov.
- Notify Affected Customers: If customer data is compromised, inform them immediately. Notifying affected individuals is not only crucial for transparency but may be legally required under state laws.
- Hire a Cybersecurity Expert: An expert can help assess the damage, mitigate the attack, and strengthen your defenses to prevent future breaches.
- Notify Your Cyber Insurance Provider: If you have cyber insurance, inform your provider immediately to help cover recovery costs and other associated expenses.
Additional Resources
The following resources offer valuable information and tools to help small businesses protect themselves during the holiday season:
- Cybersecurity for Small Business – Federal Trade Commission (FTC)
- CyberSecure My Business™ – National Cybersecurity Alliance
- Be Protected & Secure – Small Business Association of Michigan
Conclusion
Understanding common cyber threats and implementing strong security measures can significantly reduce the risk of a holiday cyberattack.
Remember, cybersecurity is an ongoing effort, not just for the holiday season. Stay alert, educate your team, and take proactive steps to protect your business and customers. This will help ensure a safe and happy holiday season for everyone.
Learn more about Oakland County’s Information Security Office here. Visit their Citizen Cyber Training portal for online education and online cybersecurity resources to help understand risks and be better prepared for a more secure online experience.
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