How To Prevent Small E-commerce Companies From Cyberattacks?

MSMEs are often vulnerable to cyberattacks because of the lack of awareness that most business owners have, also because such businesses typically store bank account details of customers, credit card information, email addresses, usernames and passwords

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A cyberattack is an attempt by hackers to damage or disrupt the security and functioning of computer systems. They can block, delete, control and steal sensitive data. This data can then be used to either damage your business or to directly steal your money. The responsibilities of MSMEs go beyond just setting up digital assets such as their e-commerce website, connecting the same to their bank accounts and starting online transactions. The MSMEs must prioritize looking into protecting their digital assets from cyberattacks.
MSMEs are often vulnerable to cyberattacks because of the lack of awareness that most business owners have, also because such businesses typically store bank account details of customers, credit card information, email addresses, usernames and passwords. These businesses often operate at a micro-level. Hence, for these companies, every loss is significant. If you run an e-commerce business, one have to be aware of cybersecurity threats that can damage the company’s reputation.

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How the MSME sector in India is going through digital transformation

In India, the MSME sector comprises more than 6.33 crore businesses and employs around 11 crore people. The sector is booming at a swift pace where it is contributing to almost 30 per cent of the country’s nominal GDP while growing at 19.5 per cent CAGR.

This sector is a sunshine sector which is also popularly known as the “engine of growth in India”, and is gradually establishing its presence in the online domain after realizing the potential of online selling. The digital growth of the MSMEs is believed to contribute to India’s goal of becoming a $5-trillion economy.
The Indian MSME sector is said to be going through a current technology adoption rate of 35 per cent. While the government and the private sectors have come together to accelerate the growth of MSMEs, there are various reasons why the transition has been slow. The main reasons are a lack of understanding of digital platforms, a sense of distrust for digital services, and creating digital identities as a task.

Types of cyberattack and ways to prevent businesses from cyberattacks

Cyberattacks are said to impose various repercussions on small businesses: be it financial, emotional or psychological, adding to the list of risks which were taken by the same when they started operating in the online space. The most common types of cyberattacks faced by small businesses are mostly phishing, ransomware, password targeting, man in the middle attach, denial of service attacks, DNS attacks and advanced persistent threats (APT).

Here are the following 7 ways one can protect small business from cyberattacks:

Gain awareness: It is crucial to understand what kind of sensitive data a person possesses. It could be ranging from credit card details to payment details, one-time passwords, account details, phone numbers, etc. which are valuable and could be an easy target for hackers. We must keep them safe from exposure to public view.

Hardware protection: It is important to take care of assets such as phones and computers which are prone to be stolen and easily accessed.

Smart passwords: Passwords which are simple and easy to guess make them liable to getting hacked. Often, people tend to keep birthdays as passwords which are strictly advised against. It is better to have passwords which are 8 characters long, and have numbers and special characters (@ # $ % *).

Update systems regularly: Systems which are used on a day-to-day basis offer updates that help protect computer systems from outside attacks by making them increasingly secure and efficient. Users should make it a point to update their systems as and when possible to prevent damage to their systems.

Insurance for cybersecurity program (cyber liability insurance): A cybersecurity program should include the appropriate online business insurance so you can confidently run your e-commerce company knowing you have the coverage you need for any lawsuits you may face stemming from a data breach.

Cyber liability insurance, also known as statistics breach insurance, protects you against liability and expenses due to the theft or loss of data and breaches of safety or privacy. And fidelity bond insurance will ensure your company if one of your employees steals your sensitive business data.