Get All Access for $5/mo

Cyber Security a Growing Issue for Small Business To keep sensitive data safe, consider these three tips collected from a House Committee on Small Business hearing today.

By Jason Fell

Opinions expressed by Entrepreneur contributors are their own.

As more business owners utilize technology such as cloud computing and mobile devices and apps, the risk of hackers accessing money and sensitive business data becomes more real. The House Committee on Small Business addressed this issue today during a special hearing called, "Protecting Small Businesses Against Emerging and Complex Cyber-Attacks."

"Small businesses generally have fewer resources available to monitor and combat cyber threats, making them easy targets for expert criminals," said Chris Collins, chairman of the House's Subcommittee on Health and Technology. "In addition, many of these firms have a false sense of security and believe they are immune from a possible cyber-attack."

The committee heard testimony from a number of professionals from the tech industry on how and why cyber security is just as much a danger for small companies as it is for larger ones. Here are three security tips that were offered as part of the testimony:

Related: Is Your Business Ready for Cyber War?

1. Create a written security policy for employees.
When it comes to cyber security, one of the biggest problems is the lack of education among small-business owners and their employees, Collins said.

Business owners and their IT departments need to stay up-to-date on issues relating to cyber security threats and should create a written security policy for employees, suggested Dan Shapero, founder of Laguna Beach, Calif.-based pay-as-you-go digital marketing firm ClikCloud. In it, determine whether employees should be allowed to have personal data on business devices, he said. Conversely, figure out whether business data should be permitted on their personal devices and what to do in case a device is lost or stolen.

Then, share the document with employees and make certain that they understand what to do and why cyber security is vital, Shapero said.

2. Use stronger passwords.
This might seem like a no-brainer to some, but business owners have been "dumb" about creating smart passwords, said William Weber, senior vice president and general counsel at Cbeyond, an Atlanta-based telecommunications and IT company. If your password is a common word, or something that can be guessed based on public information, consider changing it to something more difficult to crack.

Related: 8 Steps to Creating Stronger Passwords

Weber told a story about how one of his small-business clients used the name of his college mascot as his bank password. Hackers figured out the password and removed $40,000 from his account. Business owners should create passwords that are at least 12 characters long and contain upper and lower case letters, as well as numbers and special characters, Weber said.

Also, avoid using the same password across multiple accounts, recommended Justin Freeman, corporate counsel at San Antonio, Texas-based IT hosting company Rackspace. The more passwords between hackers and your data or money, the better, he said.

3. Encrypt your data.
You can't always keep hackers out of your computer systems, so take steps to protect the data contained within those systems, Freeman said. That's where encryption comes in. Disk encryption tools come standard on most operating systems, including BitLocker for Windows PCs and FileVault for Macs. These programs essentially convert the data on your systems into unreadable code that isn't easily deciphered by hackers.

Related: Google's New Portal Provides Help for Hacked Sites

Jason Fell

VP, Native Content

Jason Fell is the VP of Native Content, managing the Entrepreneur Partner Studio, which creates dynamic and compelling content for our partners. He previously served as's managing editor and as the technology editor prior to that.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

Some Car Dealerships Are Selling Cars the Old Fashioned Way Following Massive Cyberattack

CDK software services an estimated 15,000 dealerships in the U.S.

Business News

50 Cent Once Sued Taco Bell for $4 Million. Here's How the Fast-Food Giant Got on the Rapper's Bad Side.

The brand suggested that 50 Cent change his name to match its "Why Pay More?" value menu promotion prices. The rapper was not amused.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Jack Dorsey Says It Will Soon Be 'Impossible to Tell' if Deepfakes Are Real: 'Like You're in a Simulation'

Dorsey said we will "not know what is real and what is fake" in the next five to 10 years.

Business News

Mark Cuban's Google Account Was Hacked By 'Sophisticated' Bad Actors

The "Shark Tank" star said someone "called and said I had an intruder and spoofed [Google's] recovery methods."

Business News

Apple Is Working on Making Its $3,499 Vision Pro More Affordable — and Mainstream. Here's How.

Apple's product is at least three times more expensive than Meta's version.