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Imagine a small business owner logging in to her IT network one day to find out that all the data has been wiped clean — from transaction records, customer data to access controls. Along with severe revenue loss, such an event can potentially cause irreparable damage to reputation, leaving the young entrepreneur staring at business closure. As India’s MSMEs (Micro, Small, and Medium Enterprises) sector embraces its ‘new normal’ of innovation powered by digital adoption for growth, it’s important to protect it from cybercrimes.
According to the CyberPeace Foundation, about 43 per cent of all cyberattacks target small businesses and start-ups in India. Per a report by cybersecurity firm Trellix, Indian MSMEs faced an average of 37 cybersecurity incidents per day, amounting to a loss of nearly 7 per cent in revenue last year. However, cybersecurity threats, such as data breaches, phishing, and ransomware, still rank low on the priority list of most MSMEs. This knowledge gap, along with the lack of dedicated IT and cybersecurity specialists and financial constraints, leaves them vulnerable.
These limitations also expose small businesses to legal tangles as they are not able to comply with key regulations, such as the Information Technology Act, 2000. The complexity of cybersecurity tools only aggravates the problem, with most small entrepreneurs lacking an in-depth understanding of both the tools, as well as the business requirements.
Taking the right steps
Securing a thriving sector with over 60 million companies can be a mammoth task. MSMEs’ initiation into a secure cyber world has to start with awareness programmes for employees across all levels. To bridge the gap in knowledge and resources, MSMEs can also look to engage with cybersecurity advisors, who offer tailored solutions, helping businesses address specific vulnerabilities. Secondly, implementing robust cybersecurity policies can be crucial for protecting MSMEs. These policies can cover data protection, access control, incident response, and password management, offering a detailed framework for employees.
Further, developing tool-kits with resources like guidelines and checklists can enable employees to adhere to best practices.
The writer is Division President, South Asia, Mastercard
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