6 Simple Steps to Prevent Data Breaches in Your Small Business

October is National Cybersecurity Awareness Month - the perfect time for North Carolina small business owners to strengthen their digital defenses. This month, we're focusing on practical cybersecurity guidance that busy entrepreneurs can actually use. Whether you're just getting started with data protection or looking to improve your current security measures, these resources will help you protect your business and your customers' trust.

The best data breach response plan is the one you never have to use.

You've learned about North Carolina's data breach notification requirements and what to do if the worst happens. But here's the truth: preventing a data breach is far easier and cheaper than dealing with one. The good news? You don't need to be a cybersecurity expert or spend thousands of dollars to dramatically improve your business's security.

1. Use Strong, Unique Passwords (And Actually Remember Them)

Most data breaches happen because of weak or reused passwords. "Password123" or using the same password for everything is like leaving your front door wide open. Use a password manager like LastPass, 1Password, or Bitwarden. These tools create strong, unique passwords for every account and remember them for you. You only need to remember one master password. Turn on two-factor authentication (2FA) wherever possible - even if someone gets your password, they can't access your accounts without the second verification step.

2. Train Your Team on Basic Security

Your biggest security risk isn't hackers - it's well-meaning employees who accidentally click on malicious links or share information with the wrong people. Hold a team meeting about data security covering the basics: how to spot phishing emails (suspicious links, urgent requests for passwords, grammar mistakes), never share passwords or login information, lock computers when stepping away, don't plug in unknown USB drives, and report suspicious emails or computer behavior immediately. Show examples of actual phishing emails and let everyone practice identifying red flags.

3. Keep Your Software Updated

Outdated software is like having broken locks on your doors. Hackers know about security holes in old software and exploit them regularly. Turn on automatic updates for your operating system, all business software programs, mobile apps on work phones and tablets, and your website platform and plugins. Set aside time monthly to check that updates actually installed and address any that failed. If your software doesn't require a password, it's not secure.

4. Secure Your Wi-Fi and Network

Unsecured networks are like broadcasting your business information to anyone nearby. Public Wi-Fi is especially dangerous for accessing sensitive business data. Use WPA3 encryption on your business Wi-Fi (ask your internet provider if you need help), create a separate guest network for customers and visitors, never access sensitive business information on public Wi-Fi, and consider using a VPN (Virtual Private Network) for remote work. Quick test: if your Wi-Fi doesn't require a password, it's not secure.

5. Only Collect Data You Actually Need

The biggest data security risk is data you don't need in the first place. Every piece of customer information you collect is something you have to protect, and something that could be stolen. Before asking customers for information, ask yourself: "Do I really need this?" If a customer signs up for your email newsletter, do you need their phone number? If someone buys a product with cash, do you need their address? Do you really need their driver’s license? If so, do you need a copy?  Can you write the number in a non-digital log somewhere? Collect only what's necessary for the transaction, and delete information when you no longer need it. Can't breach data you don't have.

6. Back Up Your Data Regularly

Ransomware attacks and system failures can destroy your business data instantly. Without backups, you might lose everything or be forced to pay criminals to get your data back. Use cloud backup services like Google Drive, Dropbox, or Carbonite that automatically save your files. Most cost under $10 per month and work in the background, so you don't have to remember to back up your data manually.

Data security isn't about perfection - it's about making your business a harder target than the one next door. Most cybercriminals look for easy victims, not challenging ones.