Global tech outage highlights critical lessons for small business owners

On July 19, 2024, a significant issue involving CrowdStrike and Microsoft led to widespread disruptions across various sectors globally. This incident shines a bright light on the importance of robust cyber security practices for small business owners. Here's what happened and what you can do to protect your business.

What happened?

⚙️ The problem began when CrowdStrike, a leading cyber security firm, released a routine configuration update to their Falcon sensor software on Windows systems. This update contained a defect that caused a logic error, resulting in affected machines crashing and displaying the iconic blue screen of death (BSOD). The issue led to major disruptions in services, including airlines, banks, hospitals, and various other businesses. Days later, airlines continue to try to catch up with the backlog of passengers from canceled flights.

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Why it matters to small business owners

While the issue was not a result of a cyber attack, the widespread impact illustrates just how critical it is for businesses to ensure their cyber security measures are robust and regularly updated. Small businesses, often seen as easier targets due to limited resources, must be particularly vigilant.

In addition, events such as these often open the door for threat actors to launch phishing and other targeted attacks. By piggybacking off the news headlines, threat actors may use deceitful tactics to enter your systems. The measures used are often designed to appear like legitimate correspondence, such as from Microsoft or CrowdStrike. Malicious attempts may include:

• posing as IT help desk professionals, external software providers etc., to gain access to your login credentials,
• sending emails that look like perfect replicas of communications you expect to receive,
• creating a sense of urgency designed to keep you from thinking through a situation clearly and handing over sensitive information without realizing it.

📌 It's important to stay alert and follow these steps:

1. Pause: Take a moment before reacting to any unexpected communication.
2. Evaluate: Consider the authenticity of the message. Look for any signs that it might be a phishing attempt.
3. Think: Think critically about the situation. Does it make sense? Are there red flags?
4. Verify: Independently verify the communication by contacting the purported sender by phone or another method using contact information you have on file, not found in the email as it may be fraudulent.

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Ways to protect your data

After an incident such as the CrowdStrke update, it's an excellent time to look at the measures you currently use to keep your data safe and what more you could do.

📌 Below are the basics to help mitigate digital disasters:

1. Regular software updates: Keep all software, including operating systems and applications, up to date. Regular updates often include patches for security vulnerabilities.
2. Multi-Factor Authentication (MFA): Implement MFA to add an extra layer of security. Although this extra level may be cumbersome, it makes it harder for unauthorized users to gain access to your systems.
3. Data encryption: Encrypting sensitive data makes it more difficult for cybercriminals to access it, even if a breach occurs.
4. Regular backups: Back up your data to a secure, offsite location. This measure ensures you can recover your data in the event of a ransomware attack or system failure.
5. Employee training: Educate your employees about common cyber threats and best practices for cyber security. Phishing attacks and social engineering are common ways that systems are compromised, and educated employees are your best defense against these threats.
6. Incident response plan: Develop and maintain an incident response plan. This plan should detail the steps to take in the event of a cyber security incident to minimize damage and facilitate quick recovery.

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Securing your small business with cyber security insurance

In addition to being vigilant, securing your small business with cyber security insurance is essential in safeguarding against cyber threats. Cyber security insurance from Hiscox may cover the following costs:

• Data breach costs
• Cyber extortion
• Business interruption
• Data recovery
• Privacy protection
• Cyber crime (optional coverage)
• Digital media (optional coverage)

Investing in cyber security insurance gives your business an additional layer of protection. It's a proactive measure that can mitigate the impact of cyber threats and help your business recover quickly from a cyber incident. Get more information or add cyber security insurance coverage today.

💡✍ By combining vigilance, robust cyber security practices, and cyber security insurance, you create a more secure environment for your business and your data. Stay alert, stay safe, and keep your business protected.