12 Steps To Protect Your MSME Business from Digital Threats

Did you know that in 2020, 7 lakh small businesses were the target of cyberattacks?

With the rapid advancement of technology, that number has only increased. As per IBM’s 2024 Cost of a Data Breach Report, the overall cost of a data breach is now ₹40.75 crore.

Cybersecurity is often the most neglected part of MSMEs, mainly due to a lack of awareness or business owners underestimating how serious the risk really is.

That’s why, in this article, I’ve covered everything you need to know about cybersecurity for businesses to start protecting your online presence.

What is Cybersecurity and Why Does Your Business Need It?

Cybersecurity for business protects your computers, your business’s important information, and customer details from cyber threats. 

It is about securing your digital assets just like you’d lock up your physical store.

Here’s why you need it:

• Keeps Your Business Safe –

As your business relies more on digital tools, securing your systems and data becomes essential to ensure everything runs smoothly.

• Understand That Small Businesses Are Targets –

Hackers don’t always go for large companies. Small and medium businesses often become easier and more frequent targets.

• Avoids Expensive Disruptions –

A single breach can mess up your operations, corrupt valuable data, hurt your reputation, and lead to heavy financial losses.

• Protects What Matters Most

Cybersecurity protects your most critical digital records, like customer details, financial data, and intellectual property that your business owns.

• Manages the Risks of Growth

The tools you use to grow your business can open the door to unexpected risks. Staying secure means you’re ready to expand safely and confidently.

• Treat it as a Business Essential –

Cybersecurity is like a digital security lock on your business. It’s not a choice anymore. It’s a basic necessity.

• Builds Customer Trust:

Strong security practices show you care about customer safety. This builds long-term trust and loyalty in the customers.

• Strengthens Your Market Position:

When your business is secure, it works better, earns trust, and stands out in the market as a reliable partner.

What are Big Cyber Dangers/Risks for Your Business?

Every MSME business owner must aware & understand these major online threats that could seriously harm their business to stay protected from them. 

Threat Name	What it is	How it hurts	Warning signs
Ransomware	Attackers lock your files or computer, demanding money to unlock them.	You can’t access your work, orders, or customer data.	Files won’t open, a strange message demands money, or your screen is locked.
Phishing	Fake emails, calls, or messages try to steal sensitive info.	Unauthorised access to cloud data or apps.	Emails that feel urgent, have spelling mistakes, come from unknown senders, or ask for private details.
Malware	Harmful software that steals data or damages systems.	Slows down your computers, shows pop-ups, or crashes your system.	Sudden slowness, strange programs, antivirus alerts, or settings changing on their own.
Social Engineering	You or your team may click a bad link or share sensitive information.	They might get access to your systems or data without hacking.	Unusual requests for passwords or urgent tasks from someone who seems familiar but is acting strangely.
Cloud-Based Attack	Unauthorized access to cloud data or apps.	You may lose important files or your account could get locked.	Unusual logins, changes to your files, or not being able to access your cloud storage.
Supply Chain Attack/Third-Party Breach	Hackers target your suppliers to get to you.	Even if your business is safe, a vendor’s weakness can affect you.	Vendor reports a hack, you see strange activity linked to them, or someone gets into your system using third-party tools.
Insider Threat	Employees or ex-staff misusing access on purpose or by mistake.	They might leak or delete important business data.	Unusual data access, large downloads, attempts to access unauthorised systems, and unhappy employee behaviour.
Data Breach	When your business or customer data is leaked or stolen.	You lose trust, face legal trouble, or lose money.	Alerts from customers or banks about compromised data, evidence of unauthorised access, or exposed data online.

Benefits of Strong Cybersecurity

To you, cybersecurity might seem like another bill to pay, but it’s a smart investment that benefits MSMEs like yours in the long run.

How? Let’s understand it with a few benefits you’ll gain from this reliable security guard for your online business and digital assets.

• Protects Your Business

It protects your important business information and your customers’ personal details from being stolen or accessed by the wrong people.

• Keeps Your Business Running

It prevents online threats from shutting you down. And if something does happen, it helps you bounce back quickly and stay operational.

• Builds Customer Trust

When customers know you’re serious about protecting their information, they’ll trust you more and stay loyal. This improves your reputation!

• Saves You Money

Strong security helps you avoid major costs like restoring lost data, handling ransom demands, facing lawsuits, or repairing a damaged reputation.

• Supports Your Team

When employees don’t have to worry about cyber threats, they can focus on their work. This boosts your team productivity and also helps them achieve more.

• Strengthens Your Growth

Strong online security keeps your business stable, supports growth, and helps you succeed in today’s digital world. 

Types of Cybersecurity for Business

Now, let’s talk about how to protect your business from the cyber risks we discussed earlier. The trick is to have multiple layers of protection, so if one measure fails, another is there to back it up. 

You can call it “defence in depth.” Here are the main types of cyber protection you should know:

• Network Security
  This protects your internet connection and office networks, like having digital guards and creating private tunnels for internet use.
• Endpoint Security
  This one keeps your devices, like computers, phones, and laptops, safe from viruses and direct threats.
• Application Security
  It make sure the apps and software you use, whether they are purchased or custom-made, stay secure and updated.
• Cloud Security
  This handles the protection of your data stored online, such as on Google Drive or Office 365, using strict settings and access controls.
• Data Security
  This uses tools like encryption, backups, and leak protection to ensure your files and information stay secure.
• Identity & Access Management
  This controls who can see and use what in your systems, by using things like strong passwords and extra verification steps.
• Operational Security
  This focuses on smart habits, rules, and action plans to secure data and handle problems if anything goes wrong..
• Mobile Security
  This protects the information stored on phones and tablets that your team uses.
• IoT Security
  This secures internet-connected devices like sensors or security cameras that your business relies on.
• Zero Trust
  This is a “trust no one, verify everyone” approach. It continuously checks who is trying to access your information.

Steps to Keep Your Business Safe Online

You might feel overwhelmed after reading so many technical terms related to cyber risks and types of cybersecurity. But you don’t need to have expertise or spend loads of money to stay safe online.

You can just follow these easy habits to protect your business – 

• Use Strong Passwords + OTP
  Ask your team to create passwords with a mix of 12 to 15 characters, numbers, and symbols. Make sure they enable OTP or Multi-Factor Authentication on important business accounts.
• Update Software Regularly
  Don’t ignore the update alerts you receive. Keep all apps and systems updated. Turn on auto-update where you can.
• Back Up Your Data
  Take regular backups of essential files on both hard drives and cloud storage. Test backups to confirm they work.
• Train Your Team
  Help your staff identify phishing/fake emails and unsafe links. A smart team is your business’s best defence.
• Give Access Wisely
  Give employees access only to the files they need. Remove their access as soon as they leave the company.
• Secure Your Wi-Fi
  Change your router’s default password to something strong. Switch to WPA3 or, at the very least, WPA2 security and set up a separate Wi–Fi for guests.
• Use Antivirus and Firewalls
  Make sure every device has antivirus software installed. Keep all firewalls on auto-update and in auto-scan mode.
• Protect Online Payments
  Use safe payment gateways. Consult your bank for reliable options. Avoid combining your payment systems with regular internet usage.
• Have a Plan for Attacks
  Write a clear step-by-step guide for handling hacks. Include who to contact and what actions to take. It’ll help you stay calm during a crisis.
• Keep an Eye on Things
  Turn on alerts to detect unusual activities. Check your system logs regularly.
• Lock Up Devices
  Always lock your laptops and phones when you are not using them. Avoid leaving them unattended.
• Use a VPN
  A VPN keeps your internet use private. Use it when working from home or on public Wi-Fi networks.

Common Cybersecurity Challenges for Businesses

Protecting your business online isn’t easy, no matter how hard you try. For MSMEs, the struggle is even more real, with daily challenges that can’t be ignored.

The first step to overcoming these issues is understanding them.

Here are a few common challenges many MSMEs face:

• Tight Budgets: 

Business owners often don’t have the funds to invest in advanced security tools, hire cyber experts, or run training programs for their teams.

• No Tech Team – 

Many businesses lack at hiring dedicated staff to handle IT or cybersecurity, making it hard to manage tech-related challenges.

• “We’re Too Small” Mindset – 

Some business owners believe they’re too small to be targeted by hackers. This mindset causes them to ignore essential security practices..

• Employee Mistakes – 

Sometimes, even trained employees can slip up by clicking harmful links or using weak passwords. These minor errors can open doors for cyberattacks.

• New Threats Keep Coming – 

Cyber threats evolve constantly, and busy business owners struggle to stay updated on the latest risks and how to tackle them.

• Too Much Security Hurts Work – 

Overly complex security systems can slow down operations, leading employees to take risky shortcuts just to save time.

• Vendor Risks – 

Your suppliers might be the weak link in your security if their systems aren’t secure. Their mistakes could compromise your defences.

• Growing Pains – 

When a business is growing, cybersecurity can easily be overlooked as business owners focus on other things.

• Lack of Awareness –  

Many business owners are unaware of the actual threats, which can lead to ignoring even the most basic safety steps.

• Complicated Rules – 

New data privacy laws are important. But keeping up with them alongside rapid tech changes can feel overwhelming.

Many of these challenges, from budgets to new threats, are symptoms of a bigger issue: the lack of a clear, step-by-step system for running the business.

How New Technology is Helping Fight Cybercrime?

New technology provides us with stronger and better ways to handle cyber threats. Here’s how it’s helping, so you can use it wisely – 

• Technology like Artificial Intelligence (AI) now spots suspicious behaviour and new hacking techniques much faster.
• It learns how your business operates, flags unusual activity, and even automates certain defences. That can be a lifesaver when you’re busy with other work.
• Advanced security tools, like more innovative antivirus software, are becoming more affordable and easier for MSMEs to use.

But remember, hackers are getting smarter, too. You can’t rely on tools alone to improve safety. You need to stay alert and build good security habits across your team!

Know the Rules: Basic Cyber Law for Indian Businesses

Every MSME business owner must understand key Indian cyber law obligations under the IT Act 2000 and the Digital Personal Data Protection Act (DPDPA) 2023.

1. Reporting Cyber Incidents Quickly

• Cyber Law: 

IT Act 2000 and CERT-In Rules 2013 

• What you must do:
  • Inform CERT-In about cyber issues like breaches, malware, or DoS attacks within six hours after you find out.
  • Keep system logs as required by the rules.

• What Happens If You Don’t:

Fines and possible legal trouble under the IT Act.

2. Getting Permission to Process Personal Data

• Cyber Law: 

Digital Personal Data Protection Act (DPDPA), 2023

• What you must do:
  • Ask for clear and specific permission before collecting or using someone’s personal data.
  • Let people know through a clear privacy notice how their data will be used.

• What Happens If You Don’t:

Violating this can lead to big financial penalties that can go up to crores, as mentioned in the DPDPA schedules.

3. Reasonable Security Practices for SPDI

• Cyber Law: 

IT Act 2000. SPDI Rules, 2011

• What you must do:
  • Put in place proper technical, operational, and physical measures to protect sensitive personal data, like passwords, health details, or financial info.

• What Happens If You Don’t:

If negligence leads to someone suffering a loss or an unfair gain, the responsible party must compensate the affected person.

4. Data Breach Notification

• Cyber Law: 

Digital Personal Data Protection Act (DPDPA), 2023

• What you must do:
  • Companies must inform the Data Protection Board of India and notify individuals if any personal data breach occurs.

• What Happens If You Don’t:

Breaking these rules can lead to fines as stated under the DPDPA.

5. Respecting Rights of Individuals

• Cyber Law: 

Digital Personal Data Protection Act (DPDPA), 2023

• What you must do:
  • Provide options for people (data principals) to access, fix, delete, or update their personal details. 
  • Create a system to handle their complaints.

• What Happens If You Don’t:

Failing to protect these rights can result in penalties under the DPDPA.

6. Ban on Cybercrimes

• Cyber Law: 

Information Technology Act, 2000

• What you must do:
  • Avoid hacking, stealing identities, copying and saving data without permission, or spreading harmful software.
  • Keep systems safe to prevent these kinds of cyberattacks.

• What Happens If You Don’t:

Breaking the law can lead a responsible person to jail time or fines based on how serious the crime is.

Final Thoughts

We discussed all possible way to secure your business from uncertain digital activities with cybersecurity for business strategies.

If you’re still not sure where to begin, start by doing a quick scan of all your social accounts and digital assets to identify any possible threats. From there, you can plan and set up simple security steps for your team to follow. 

And, don’t hesitate to consult an expert whenever needed. Stay updated by reading more blogs related to business.

Building a secure business is the first step. Now it’s time to master the ‘how’ for your entire business.