Small businesses are the target for nearly half of all cybercrime in New Zealand, with data breaches costing around $173,000 on average. This comprehensive guide explains how Kiwi SMEs can protect themselves online.
If you’re running a small to medium business in Aotearoa, here’s a sobering thought: nearly half of all cybercrime in New Zealand targets small businesses like yours. According to recent research from the National Cyber Security Centre (NCSC), the estimated cost of a data breach is around $173,000 – a potentially devastating blow to any small operation.
The 2024 SME Behaviour Tracker reveals a concerning reality. While many businesses have adopted basic cybersecurity practices, only just over half of SMEs consider cybersecurity a top priority. Even more worrying, less than half feel adequately prepared for a cyber incident.
Michael Jagusch, NCSC Director Mission Enablement, puts it bluntly: “We know online attacks can be quite damaging for small businesses. But we also see many businesses are continuing to focus on the ambulance at the bottom of the cliff rather than on building the fence at the top.”
This reactive approach – only taking action after being hit – is widespread. The statistics show that one in three SMEs has experienced at least one cyber attack in the past six months. Of those targeted, almost 60% took new security measures afterwards. By comparison, less than 30% of businesses that hadn’t yet been targeted took preventative action.
Cyber threats to small businesses in New Zealand come in many forms, but they share a common goal – accessing valuable information that can leave your business vulnerable. This includes:
These attacks are growing increasingly sophisticated. Gone are the days when cyber criminals were easily spotted through obvious spelling mistakes or suspicious email addresses. Today’s threats often appear legitimate, making them harder to identify without proper awareness and training.
For small businesses without dedicated IT departments or security specialists, these evolving threats present a significant challenge. However, understanding common attack methods can help you recognise and avoid them.
Protecting your business doesn’t need to be complicated or expensive. Here are some fundamental security measures every New Zealand small business should implement:
Strong Password Practices: Require complex passwords and implement multi-factor authentication where possible, especially for accounts with sensitive information. Consider using a password manager to help staff maintain unique passwords across different platforms.
Regular Software Updates: More than a third of SMEs don’t regularly update their software, leaving known vulnerabilities exposed. Set up automatic updates where possible, and create a schedule for checking systems that require manual updates.
Data Backups: Regular backups are essential for business continuity. Follow the 3-2-1 rule: maintain three copies of important data, on two different types of storage, with one copy stored off-site or in the cloud.
Staff Training: Your team is both your greatest asset and potentially your greatest vulnerability. Regular training on how to identify phishing attempts and other social engineering tactics can significantly reduce your risk. The “Own Your Online” website offers free resources specifically designed for New Zealand businesses.
Incident Response Planning: Prepare a step-by-step guide for what to do if you suspect a breach. This should include who to contact, what systems to isolate, and how to communicate with customers if their data is affected.
New Zealand businesses have access to several resources specifically designed to help improve cyber resilience:
The “Own Your Online” initiative provides practical and free information tailored to small businesses. Their website includes a business online security assessment tool that delivers a customised plan based on your specific situation.
For a more comprehensive approach, the “Unmask Cyber Crime” video series breaks down the basics of business online security into digestible episodes covering protection for business accounts, data systems, websites, and social media. The series also includes guidance on how to spot phishing attacks – the most common form of cyber attack.
CERT NZ (Computer Emergency Response Team) provides additional resources and is the central place to report cybersecurity incidents. They can provide specific advice if you believe your business has been compromised.
Perhaps the most effective cybersecurity measure is creating a culture where security awareness is part of everyday operations. This means regularly discussing potential threats, celebrating good security practices, and ensuring that security considerations are built into business decisions rather than treated as an afterthought.
Small businesses often enjoy the advantage of agility and direct communication – use this to your benefit by making cybersecurity a regular topic of conversation. Consider appointing a security champion, even if they aren’t an IT specialist, to keep security practices on the agenda.
Remember that cybersecurity isn’t just about technology – it’s about people and processes too. Simple habits like locking computers when not in use, being cautious about public Wi-Fi, and verifying requests for sensitive information can significantly reduce your risk profile.
In today’s digital landscape, cybersecurity isn’t optional for New Zealand small businesses – it’s essential. By taking proactive steps now, you’re not just protecting your data and systems; you’re safeguarding your reputation, customer trust, and ultimately, your bottom line.
As Michael Jagusch emphasises, “We really need businesses to have their defences up for the very first attack, rather than being better prepared for the second one.” Wise words for any small business owner in Aotearoa.
National Cyber Security Centre (NCSC). (2024). 2024 SME Behaviour Tracker.
CERT NZ. (2024). Businesses in Aotearoa need to prioritise cybersecurity.
Own Your Online. (2024). Unmask Cyber Crime: Business Online Security Series.
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