Small businesses at risk of multimillion pound fines for breaking GDPR rules

A new survey has revealed many small business owners are still clueless about GDPR. The results suggest small businesses could be in breach of GDPR without even realising it, as half of the participants appeared confused when answering questions surrounding data protection and privacy regulations.

A worrying 4/10 didn’t know that losing paperwork could be a data breach, or that emailing or faxing personal details could potentially be breaching data regulations also.

Are you being extra careful when sending that email?

Scarily, 45% of businesses did not know that the ICO (Information Commissioner's Office) needed to be informed when data was breached and individuals' rights were affected. It also showed they were unaware and failing to ensure confidential paperwork such as signing in and visitor’s books were kept in a protected environment.

It’s essential as a business owner you stay well informed and aware of GDPR and data protection to ensure you continue to create trust in your employees and consumers. By staying up to date with the changing data laws, you will show that you are consistent in protecting personal and private information.

Breaking GDPR is easily done within a business - it's as simple as storing files with personal data outside of a defined structure. Many SMEs are digitally renovating their businesses with more intricate technology, however, this essential move is increasing their exposure and vulnerability for cyber-attacks.

The fact that new threats are constantly evolving and developing - and 43% of cyber-attacks are aimed at SMEs - highlights the lack of knowledge surrounding GDPR. Small businesses now need to look at investing more time in digital security. This will not only prevent any future attacks but show that you are being proactive with your digital approach.

What can you do?

By maintaining your security and safeguarding your business, you are able to protect your organisation long term. Utilising Cyber Essentials, Cyber Essentials Plus and IASME GDPR Readiness certifications, which are compliant with the Data Protection Act (2012), you can ensure that you are prioritising your business and data while giving your employees and consumers that added assurance.

Safeguarding your data should be your priority. Considering crisis incidents such as extortion, cyber attacks, and industrial espionage are just a click away, it is critical that SMEs assess their ability to survive a cyberattack, and there are steps to take to prevent and manage this if the worst were to happen.

How confident are you that your business is fully compliant?

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Three reasons why SMEs need to invest in cybersecurity

Social media and the internet has managed to infiltrate every household, school and SME within modern society. The internet has indeed changed many aspects of our lives for the better, with commercial benefits such as providing opportunities, enabling growth and development, and increasing financial gain.

Many SMEs are digitally renovating their business processes to avoid lagging behind their competitors. This essential move into increasingly more intricate technology can cause a parallel in their exposure and vulnerability.

Here are three reasons why SMEs should invest in cybersecurity in 2019:

1. Protects your business and customers

A solitary successful attack could not only damage your business but affect how consumers view your company and ultimately direct them to choose an alternative one with greater reliability and credibility. Cyber attacks can ultimately destroy your business’ reputation. All businesses hold a range of data, which can include sensitive information which can easily be accessed if you do not have Cyber Essentials. Businesses that fail to manage a customer’s personal data in accordance with GDPR could experience regulatory sanctions.

2. Keep up to date with new threats

Safeguarding your valuable data should be a priority within your business because failing to comply with modern cyber-security and data privacy laws (GDPR, IASME) can put your clients at massive risk.

Even if you feel that your business is safeguarded, compliant and protected, cyber-attacks are increasing every year and are becoming more sophisticated with the ability to attack the most advanced security systems. Ensuring you get Cyber Essentials Plus or Cyber Essentials certified can ensure you stay on top of advanced threats and keep your business secure.

3. Cyber-attacks are preventable

By maintaining security hygiene and safeguarding within your organisation, and following some principle steps to better protect yourself, you are creating a more secure and trustworthy business for clients. By being Cyber Essentials or Cyber Essentials Plus certified, both of which are compliant with the Data Protection Act (2018), you can be confident that you are protecting your business and data, and will give your customers added assurance.

Cyber-crime will continue to evolve, with new threats developing every year. As such, your business should be prioritising taking action against potential cybersecurity breaches. However, today the velocity of cyber-attack evolution is far outpacing the level of security that businesses have deployed, so cybersecurity has never been more valuable to SMEs. Remember, a cyber-attack is more a question of ‘when’ not ’if’.

GDPR: ICO publishes new guidance on Special Category Data 

Special category data

The Information Commissioner’s Office (ICO) has published new guidance on how and why special category data needs to be handled more carefully.

Some types of personal data are extremely sensitive , and therefore, data controllers must take extra measures to ensure their protection. This is known as special category data and it relates to data that:

  • reveals racial or ethnic origin;
  • reveals political opinions;
  • reveals religious or philosophical beliefs;
  • reveals trade union membership;
  • genetic data;
  • biometric data (where used for identification purposes);
  • data concerning an individual's health;
  • data concerning a person’s sex life; or
  • their sexual orientation.

Leaks of this type of personal data can be extremely damaging and dangerous, just imagine if your medical records, information about your sex life or your political opinions were put into the public domain so anyone could see them. 

This has led the ICO to publish new guidance to support organisations in ensuring they stay GDPR compliant and protect the data they control. 

What does the new guidance say about how organisations should approach processing special category data?

Firstly, as always, you must have a GDPR lawful basis to process data under Article 6. However, when processing special category data you also need an Article 9 condition for the processing and potentially an associated DPA 2018 Schedule 1 condition. Many of the DPA 2018 conditions require you to have an appropriate policy document in place. This is a short document that should outline your compliance measures and retention policies with respect to the data you are processing. 

There is more to do when processing special category data, but the provisions are in place to help you protect the data of those whose information you hold, and increase your customers’ confidence in you. 

Data protection obligations got you in a muddle? Get on top of them quickly and easily with the CyberSmart Privacy Toolbox.

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Securing the links in your supply chain to prevent cyber attacks

Cyber attacks happen virtually every day, and the impacts data breaches can have on SMEs can be catastrophic. Falling foul of GDPR legislation  can result in fines, loss of trust in your company and ultimately loss of revenue – so it pays to be compliant. 

However, what about the other organisations in your supply chain? Do they require access to your data or systems? Could your security become compromised as a result? While you might have the right cyber essentials in place, can you say the same about your suppliers? These are just a handful of questions all company decision-makers should be asking. 

Supply chain attacks: a history 

Supply chain attacks are nothing new. In fact, one of the largest data breaches in history (when the US-based retailer Target had the credit/debit card information of up to 40 million customers stolen) happened when the firm’s POS system had been infiltrated via malware that came via a supplier. In 2013, attackers used the “trusted” connection between the supplier and Target’s system to gain easy access. 

Putting appropriate controls in place 

All SMEs should understand the risks suppliers may pose and should ensure the supply chain is subject to the appropriate security controls. A good starting point would be to request all suppliers show evidence of having attained “Cyber Essentials” certification – the UK’s recommended security standard. However, this might even be insufficient for high-risk suppliers, who need to go one further and get “Cyber Essentials Plus” accredited.

Mitigating against risk 

As a company, you need to decide which controls you insist upon your suppliers having before you decide to continue doing business with them. If suppliers are unwilling or otherwise unable to comply with these requests, you need to consider whether you can put procedures in place to protect your data that allow you to continue forging a working relationship with them. 

Cybersecurity is one of the biggest threats faced by SMEs in the UK today, and its impacts on every entity within a supply chain, from top to bottom, are far-reaching. It’s therefore imperative for all elements of the supply chain to work together to maintain the strictest possible security measures. 

Find out more 

If you’d like to know more about Cyber Essentials certification or are concerned that your business might not be adequately protected against supply chain cyber-attacks, why not contact Cybersmart today? A member of our team will be happy to discuss your requirements or arrange a security audit of your current systems. 

The impact of GDPR: cybersecurity improvements that benefit you

An upsurge in incidents or cybersecurity crackdown? 

Data breach victims and negligent companies aside, how have everyday companies fared with the new GDPR regulations? The most comprehensive review on the impact of the May 2018 change is the ICO’s annual report. The report has revealed a 29% increase in reported security incidents and data breaches. With the requirement for companies to report significant incidents, within 72 hours of being made aware that there has been a data breach, has greatly increased the number of breach reports. Although on the surface it may look as though incidents have increased exponentially in the last 2 years, the new GDPR rules have actually resulted in a cybersecurity crackdown instead. 

Great news for compliant companies 

The ICO's conducted analysis shows that there is further good news for companies who are happy to comply with the new regulations. Despite £875,000 of fines being issued between July and September 2018, a closer look at the statistics shows that the data breaches here were mostly caused by individuals or companies with inadequate policies, with fewer successful cyberattacks overall. The NCSC has played a pivotal part in raising the awareness of GDPR compliance, and this has resulted in many businesses finding it easier to follow the regulations laid out in the new laws. This has meant that more companies are GDPR compliant, as a result, are less likely to be involved in a situation where fines might be issued.

Because the GDPR regulations have caused companies to put more effort into data collection as well as data protection, there is far more data available. With improved security comes a more knowledgeable taskforce, with companies beginning to rely on the increased data-opportunities for future planning. This is an incredible boom for companies who are ready to use the new data. It can improve long and short term planning, as well as the analysis of previous years. 

Cost-saving security 

Best of all, companies are starting to report the positive impact that improved security has had on their bottom lines. Fewer data-breaches means fewer fines, fewer compensation claims, less costly mop-up operations and more trust from their customers.

Data protection obligations got you in a muddle? Get on top of them quickly and easily with the CyberSmart Privacy Toolbox.

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Is your business protected from these common cyber threats?

Many small and medium businesses avoid thinking about their cybersecurity. This may be for a number of reasons, including fear, financial constraints and human resource issues. Predominately, however, many businesses do not focus on their cybersecurity as they believe cyber threats are only real for large businesses. Unfortunately, small to medium-sized businesses are often the target of malicious cybercriminals due to their weak cybersecurity. Below we look at some commonly overlooked threats in SME cybersecurity.

USB sticks 

Due to their small size, USB sticks are portable which makes them incredibly useful. However, USB sticks are therefore also very easy to steal and manipulate if they are not kept in a safe place. Harmful bugs and virus software can be installed on USB sticks so it is essential that you never plug a USB stick into your computer if it has been out of your possession, e.g. if you have been given one for free or if your missing USB stick is miraculously returned to you. It is also important to make sure your USB stick is encrypted and password protected. 

Zombie accounts 

In 2019, GDPR was undoubtedly a dominant topic, and the new regulations forced businesses to consider how they find and store their data more than ever before. Even if a business is compliant with GDPR, they still need to consider the risk of zombie accounts. Zombie accounts are online accounts closed by their user and then re-opened again by a third party, without the original user's consent. Business owners should also be aware that zombie accounts can also be the accounts of previous employees, giving hackers access to your website and private business information. Identifying, deactivating and deleting any potential zombie accounts is essential to ensure the safety of your business. Cybersecurity services, such as Cyber Smart, can help you do this. 

Data security 

To ensure you can maintain the legally required GDPR compliance, storing your client's data safely is essential.  Many businesses find data storage overwhelming and feel they don't have the time or resources to properly understand or manage their data. There are, however, easy steps you can make to ensure your client’s data is protected. 

  • Implementing strong passwords is essential to protect your self from a security breach. Using a combination of capital and lower-case letters, numbers and symbols and make it 8 to 12 characters long will make your password hard to crack. 
  • Install a firewall - In order to have a properly protected network, firewalls are a must. A firewall protects your network by controlling internet traffic coming into and flowing out of your business. 
  • Making sure your computer is properly patched and updated is a necessary step towards being fully protected. Updating your programs keeps you up-to-date on any recent issues or holes that programmers have fixed. 

Cyber Smart can help your business earn Cyber Essentials Plus certification, the highest level of this government-backed certification, helping you ensure your company is safe against the most common threats. In achieving this certification, you can be confident you are protecting your business, data and give your customers the added assurance.

If your business is hit by a cyber-attack, not only could you stand to lose a lot financially, you will also lose the trust of your clients, something that is almost impossible to regain. To ensure you avoid such a problem, contact CyberSmart today and a member of our expert team will help improve your cybersecurity.

How investing in cybersecurity can boost your success

There's no doubt we live in a digital world, and most businesses realise the danger they face if they fail to get on board with the latest trends. After all, few companies, if any, lack an online presence. That means much of small businesses’ data is stored on hard drives in local computers and servers in the cloud. Therefore, it's time you took measures to ascertain the integrity and security of your company’s data because as most organisations are starting to realise, cybersecurity is the key to fast business growth in the digital era. How? 

It helps you outsmart the competition 

Hackers are opportunists. The recent ransomware attacks we have seen plaguing national and international companies and institutions such as the NHS are a menace, with cybercriminals looking for any means possible to gain access to sensitive data. Considering that most companies have a digital presence, this means attacks are simply growing as hacking software becomes more sophisticated. As such, clients are increasingly looking for this reassurance from companies they do business with, meaning that offering robust cybersecurity is increasingly being used to outsmart the competition while safeguarding your data. 

It makes threats less likely 

Most companies are turning to cloud technology because it has been deemed the most secure, and it enables collaboration on a global scale. In the cloud, companies can access their data from anywhere in the world and share it with key stakeholders. However, to appreciate the power of cloud technology, it’s essential to plan carefully and invest in professionals who can optimise the technology for utmost security. Without these resources, your company stands to receive threats like denial of service, data breaches, management of remote identities, or insecure external applications, which can damage your company's reputation and hamper its success. 

It demonstrates compliance 

Following best practice and industry standards for cybersecurity is essential if your company is to be trusted by current and prospective clients, and if you are to hold a commanding position in your market. Failure to comply with modern cybersecurity and data privacy standards like Cyber Essentials and IASME GDPR Readiness doesn't just place your business and your client data at risk, it also means you could be landed with a heavy penalty for any breaches that could stunt your company's development. These regulations have been established to protect and prolong the existence of SMEs like yours, as well as their stakeholders, so remaining compliant is critical. 

Investing in cybersecurity is essential to the growth of your business. By neglecting it, you not only hinder the development of your company but also place it at risk of irreparable damage. 

What's more, investing in cybersecurity now can give your company the leverage it needs to innovate for the future. 

Cyber Essentials: How to meet IT infrastructure requirements and get certified

IT infrastructure requirements

If you’re an SME looking to get Cyber Essentials accredited, a strong IT infrastructure, well-trained staff, and a thorough plan will help you to meet certification requirements.

Once you’ve met the requirements you’ll be:

Before you start your application, it’s important to know exactly what’s expected of you and to prepare accordingly. In January this year, the Cyber Essentials requirements changed to better reflect current cybersecurity challenges. 

You can read the full documentation from NCSC, but this article covers what you need to know about the technical controls used to assess your application.

Cyber Essentials requirements for compliant IT infrastructure

There are five categories of criteria you need to meet. Working through each will help you on your way to safer, smarter, and more sustainable data management. 

The 5 Cyber Essentials categories are:

  1. Firewalls
  2. Secure configuration
  3. User access control
  4. Malware protection
  5. Security update management

1. Firewalls

Every device connecting to your network must have a boundary firewall. This will restrict the flow of network traffic and protect against cyber attacks. You must:

  • Have a strong administrative password and change it regularly
  • Have two-factor authentication or an IP whitelist to access admin controls
  • Block unauthenticated connections by default
  • Document and approve inbound connections
  • Be able to enable/disable functions
  • Use a software firewall to protect devices on untrusted networks like public Wi-Fi

Cut through the noise of cybersecurity certifications with our quick and easy guide. Learn how to choose the right certification for you, and how to get certified.

2. Secure configuration

You must configure all computer and network devices to reduce vulnerabilities and restrict functionality based on job role fulfilment. To comply with Cyber Essentials, secure configuration has to go beyond out-of-the-box solutions. You must be able to:

  • Change passwords 
  • Remove or deactivate user accounts
  • Remove unused or unnecessary software and applications 
  • Disable auto-run features that don’t need authorisation
  • Authenticate users before they access sensitive data
  • Introduce device locking controls for users on-site

The National Cyber Security Centre includes the following in their definition of a device. You’ll need to include all that apply to you in your preparation for the self-assessment.

  • Hosts
  • Networking equipment
  • Servers
  • Networks
  • Desktop computers
  • Laptop computers
  • Thin clients
  • Tablets
  • Physical and digital mobile phones

3. User access control

Businesses must have controls in place to manage user access to applications, devices, and sensitive business data. Employees should only have access to what they need. Administrator-level users must manage and monitor access.   

You must be able to:

  • Approve user account creation and remove or disable accounts
  • Authenticate users before granting additional access
  • Use multi-factor authentication for all cloud services and, where possible, for other services. 
  • Restrict use of administrative accounts 
  • Revoke or disable additional access privileges 

4. Malware protection

Anti-malware software protects against attacks on networks and users by restricting untrusted software from accessing sensitive data. 

Malware protection must allow you to:

  • Keep all software up to date and safe
  • Regularly scan to ensure the network is safe
  • Automatically scan browsers and online applications
  • Block and prevent connections to malicious websites
  • Whitelist applications following a full approval process

5. Security update management

Security update management helps to keep existing software up to date and reduces the business risk of security flaws or gaps in protection. You must:

  • Keep all software licensed and supported
  • Remove unsupported software from devices 
  • Enable automatic updates if possible
  • Update within 14 days of release where automatic updates are not available

Improving your cybersecurity

You might feel ready to take the next step in your cybersecurity journey and complete the self-assessment to get certified. But if you’re just getting started or feel unsure, you’re not alone and support is available if you need it. You can partner with an expert who’ll show you how to prepare and help you pass first time.

When you’ve got a Cyber Essentials certification, you can strengthen your cybersecurity by applying for certifications like Cyber Essentials Plus or ISO 27001. The standards you should uphold all depend on the industry you operate in and what will protect and benefit your business and customers.

Discover which cybersecurity certification is right for your business in our certification guide.

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Proactive IT Security Compliance vs Reactive cybersecurity firefighting

Proactive IT Security Compliance vs Reactive cybersecurity

When it comes to cybersecurity, MSSPs traditionally provide two standard services: proactive or reactive. Some businesses prefer the reactive approach and require a fix for security issues only when they arise. For other businesses, horizon scanning and taking a more proactive approach fits their risk appetite and lets them stay one step ahead.

Being an MSSP, you have a responsibility to guide clients to the best approach for their business and one that matches their risk appetite. In this blog post, we look at the reasons why proactive compliance is better for businesses than a reactive approach when assessing cybersecurity firefighting.

The Reactive vs. Proactive Approach

A reactive approach towards security embraces the philosophy of wait until the security perimeter is breached then acting to fix it. An MSSP is typically responsible for cleaning up the mess after the security incident using this approach; one that might work with other services, but with cybersecurity, may have business crippling impacts.

Once a security incident has occurred, the damage has already been done. The loss of data and extended downtime of any systems has already caused financial, reputational or other losses to the client. Add on the cost in time and effort to ‘fix’ and the potential impacts, coupled with the loss of productivity or revenue do not make happy reading.

A proactive approach, on the other hand, is about anticipatory prevention measures and rapid notification that drives responsiveness. In this approach, the MSSP is responsible for assisting the client address the potential security risks before they can become problems. 

Cyber attacks do not sleep, and the proactive approach to cybersecurity defensive measures is the best approach to leave little to no room for attackers to exploit the system. The earlier a problem area or attack vector is identified, the easier it is to fix or to close the door to a potential breach. A proactive approach is a great way to ensure clients’ infrastructure is protected 24/7. It requires continuous engagement with clients and involves the design and deployment of preemptive strategies, tools and techniques with an awareness of threat intelligence to prevent security issues from becoming a concern.   

Drawbacks of Reactive Cybersecurity

The reactive approach may save cost for clients initially, but in the long run, it increases the risks of:  

  • Increased costs. Once a breach has occurred, the financial impacts can be severe. GDPR data-breach fines are not insignificant to any business and the reputational damage costs could be even higher. For SMEs, these costs could be the difference between staying in business or having to close. And that is bad for the client and bad for the MSSP.
  • Inappropriate damage control tools. The reactive firefighting approach is not about protecting businesses for the future. Instead, it is about running a damage control campaign to counter the effects of an ongoing security incident. There is no clear direction to take and often no clear security baseline to revert to rapidly to regain business control. When the breach occurs, the business may well blame the MSSP for not taking care of security more adequately.
  • No clear resolution method. Unlike compliance, you never know what to expect with a reactive call from a client. The best method to resolve the issue may well vary according to the type of incident, the extent of the damage, and the size of the business. This makes it difficult to position pre-defined expertise or resources necessary to deliver reactive services. This uncertainty adds cost to the MSSPs business model that can be difficult, to pass through to clients.

Proactive Cybersecurity Compliance

A proactive compliance approach has a number of benefits for MSSPs:

  • Reduced costs and recurring revenue. A data breach or ransomware attack can lead to substantial losses for a business. The financial losses may include damaged infrastructure, lost data, fines imposed by regulatory bodies, reputational damage and the cost of lost productivity. The risk of realising these costs can be mitigated through a proactive compliance approach. For MSSPs, the benefit is in offering clients a subscription-based compliance model. Since compliance is an ongoing process, your business can focus on building a recurring revenue stream based on a predictable financial model.
  • A well-defined approach. Compliance can be achieved through well-defined processes such as the one used by CyberSmart. A proactive compliance service can be effectively planned and priced by MSSPs. As a preemptive approach, you know exactly the resources and personnel will need to dedicate to each client.
  • Avoid disruptions and build credibility. The ultimate goal of compliance is to prevent risks to clients that could disrupt their business. Offering proactive services to clients delivers ongoing protection against cyberattacks and offers longer-term client relationships built on trust.

Conclusion

Cyberattacks are evolving, the targets change frequently and the risks and threats are not going to go away if we pretend they do not exist. For businesses, they should not sit back and wait to be breached but they should be encouraged to keep on the front foot and lower their risks. 

MSSPs focusing on selling compliance that delivers lowered risk of cyber attack is a great opportunity in the ever-expanding, digitally connected marketplace. Being proactive has great commercial benefits for them and their clients. It can build recurring revenue streams and a sustainable reputation for the MSSPs. For businesses, the benefits or a reduced risk profile are clear.

CyberSmart Active Protect provides everything your clients need to protect their businesses around the clock.  If you would like to learn more about how we can help you sell proactive security, feel free to reach out to us.

What is Cyber Essentials Plus?

Cyber Essentials Plus

If you’re a UK SME and part of a big supply chain or going for government tenders, you’re likely to be aware of the needs of Cyber Essentials. The original Cyber Essentials certification was designed to provide businesses with the basics of cyber safety and ethical business practices online; from managing firewalls and user accounts to appropriately protecting their business against malware and data theft. To remain compliant with modern UK business requirements, Cyber Essentials is – well, an essential.

But for businesses wanting to go beyond the basics and improve their safety and the security of their business online, Cyber Essentials Plus is the answer. As one of the services we offer our clients, we deliver the Cyber Essentials Plus certification through IASME and know just how important this higher compliance standard from achieving the ‘Plus’ certificate can be to your businesses.

What's the difference between Cyber Essentials and Cyber Essentials Plus?

So what exactly is the difference between the two certifications? It all comes down to the use of an independent auditor. Cyber Essentials Plus requires still requires businesses to comply with the same five factors as the non-plus model. Known as technical security controls, these include:

  • Firewalls
  • Secure Configuration
  • User Access Control
  • Malware Protection
  • Patch Management

In addition to these basic requirements to be certified, Cyber Essentials Plus goes a step further than the self-certification of Cyber Essentials and requires an independent assessment of the business's internal security controls to achieve this higher level full certification.

Why an independent assessment?

Robust credibility is the driving reason why Cyber Essentials plus uses independent assessment as this ensures companies are indeed compliant with the requirements of the Cyber Essentials scheme. The additional step ensures the safety of the business but further helps authenticate the certification. By verifying you are compliant, the resultant certification award is more trustworthy than an in-house DIY version of the Cyber Essentials certificate.

Which form of certification is best for your business? If at all possible, upgrading from Cyber Essentials to a higher-level certification is the ideal choice for any company. Each assessment includes a vulnerability scan to ensure your business data and information is well protected. If you are genuinely committed to safer online and network practices, for your business and your clients, then investing in Cyber Essentials PLUS certification could be your best move.

Looking to improve your cybersecurity but not sure where to begin? Start by getting certified in Cyber Essentials, the UK government scheme that covers all the fundamentals of cyber hygiene.

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