Cyber-criminals are increasingly targeting small businesses, recognising that they may lack the time, knowledge and resources to deal with an attack. We look at the main risks and offer advice about how to minimise them.

In the news, it’s been announced that local councils will be able change Sunday trading hours, and it’s estimated that small businesses could be missing out on up to £40 million in interest on their money.

Top news stories

Big rise in number of small businesses targeted by cyber-criminals

74% of small organisations reported a security breach in the last year, an increase on 2013 and 2014 surveys.

Sunday trading powers handed to councils

Measures to shake-up shop opening hours will be put forward as amendments to the Enterprise Bill.

Small businesses miss out on over £40 million in interest

The low levels of interest from banks mean that small businesses aren’t getting the returns they could. Find out more about how to switch accounts to get a better return.

League tables for gender pay gap

Companies that fail to address pay differences between male and female employees will be highlighted in new league tables, under plans announced by Women and Equalities Minister Nicky Morgan. 66% of employees said they wouldn’t work for an employer with a gender pay gap.

Government’s digital marketplace reaches £1 billion in sales

The majority of the sales of these digital services has gone to small businesses.

Key dates for your diary

7 March: Changes for regulatory references for the finance sector

From this date, banks and insurers will need to follow new rules for employment references for certain senior posts. More details can be found on the FCA website.

How to minimise the risks from scams and hackers

The figures make for unhappy reading - 74% of small businesses had a security breach last year. As the range and sophistication of attacks increase, it’s essential that you’re informed about the common scams and how to protect yourself.

Here are the main ways that scammers are attacking small businesses:

Invoice scams

In these cases, criminals send out fake invoices requesting payment. They often ask for account details or pretend to be contacting you from an actual supplier to ask that you switch the bank details you have on record. According to figures, 749 businesses were victims of this scam in the first six months of 2015 alone.

Ransomware

This malicious software encrypts all your files so you can’t access them or the data they contain. The hackers will then issue a ransom to unlock them. One Blackburn firm recently had their files encrypted and ended up paying out £3,000 to get the decryption key.

The ransomware code is normally activated when someone clicks a link in a phishing email.

Deliberate overpayment

In these scams, someone will pay by cheque and then contact you to say that they have “accidentally” overpaid and ask for you to refund this amount. The cheque they send will be fraudulent, leaving you out of pocket for the “refund”. Even if the cheque has cleared, it may later be rejected, as this case reported online shows.

Hacking and malware

This involves getting access to files, including customer data and credit card details, through a gap in security. This can affect your website, your email or your file systems.

How to stay safe

Here are some steps you can take to help minimise the risks:

• Stay informed: read the news and IT press to stay up to date with the latest attacks. Cyber-criminals are adaptable and change their approach regularly.
• Make sure your employees know too: cascade the information to your teams, so everyone is on the lookout for suspicious activity. Make sure people know not to click links in unfamiliar emails and to ensure their files and hardware are protected.
• Backup your data: make sure you have a system in place to backup your files so they can be recovered if there is an issue. Have a regular schedule to do this - this needs to be frequently as any files created since the last backup will be lost when you roll back.
• Keep security software up to date: anti-virus and malware software needs to be current to be effective, so make sure it’s installed and updated on all devices. Make sure that you install software updates as soon as they become ready - you’ll need to do this for your website too.
• Check details before paying invoices: your finance software should have all the up-to-date information about your debtors. It pays to take the time to double-check any invoices before making payments. If in doubt about a purchase, ask the person in your company who is listed as the buyer. If you are asked to change bank details for the supplier, always double-check this with your usual contact at that company.
• Don’t bank cheques for incorrect amounts: before banking any cheques, ensure that they are for the correct amount for the product you will be supplying. This will ensure you don’t have to issue refunds for overpayments. Also, ensure cheques are cleared before sending out any goods.