Given the evolving character of South Africa’s economy, the contribution of Small and Medium-sized Enterprises (SMEs) plays an important role in fueling growth and fostering innovation. Based on a report from the Small Enterprise Foundation, it is estimated that SMEs make up around 90% of businesses in South Africa and are responsible for employing over 60% of the workforce. However, as small and medium-sized enterprises (SMEs) continue to embrace IT companies and digital technologies for their operations and expansion, they face an increasing risk of cyber threats. In this article, we will discuss the best cybersecurity practices for South African SMEs.

Cybersecurity Challenges in South Africa

South Africa is confronted with major cybersecurity challenges — it currently holds the 3rd position globally for cybercrime, as reported in the 2022 Cybercrime Report. The report also highlights that the average cost of a data breach in South Africa is approximately R43 million. Small and medium-sized enterprises (SMEs) face significant challenges when it comes to protecting their digital assets.

Due to limited resources, these businesses often prioritise other aspects over robust cybersecurity measures. Limited budgets leads to insufficient funds for security solutions. It is also concerning to see a significant lack of awareness regarding cybersecurity risks among SME owners and employees. It seems that they tend to underestimate the potential threats, mistakenly believing that cyberattacks are mainly directed towards larger corporations. A lot of SMEs lack the knowledge necessary to properly handle complicated cybersecurity challenges.

There has been a significant increase in cyber threats targeting small and medium-sized businesses in South Africa. During the first quarter of 2023, there was a 10% increase in ransomware attacks compared to the previous quarter. Ransomware is a malicious tactic used by cybercriminals to encrypt valuable business data and extort a ransom in exchange for its decryption. Small and medium-sized enterprises (SMEs) are often targeted by hackers due to their higher likelihood of paying the ransom, which makes these attacks more profitable for the perpetrators. Phishing scams are a major concern, as cybercriminals employ various tactics such as deceptive emails, messages, or websites to deceive employees into divulging sensitive information or downloading harmful software.

Insider threats, whether intentional or accidental, and supply chain vulnerabilities pose significant risks to SME cybersecurity. An attack on a partner can have significant consequences, causing disruptions to operations and potentially harming the reputation of the SME. Poor cybersecurity practices can have serious repercussions, such as financial setbacks, disruptions in operations, breaches of sensitive data, and harm to reputation. These consequences can undermine customer confidence and lead to penalties from regulatory authorities.

Effective Strategies for Small and Medium Enterprises

In order to address these risks, small and medium-sized enterprises should implement strong cybersecurity measures.

Regular risk assessments are essential to ensure the ongoing security and stability of your systems. By conducting these assessments, you can identify potential vulnerabilities and take proactive measures to mitigate them. It is crucial to stay vigilant and regularly evaluate the risks your organisation faces. Conduct routine risk assessments to pinpoint vulnerabilities and determine the most critical areas for mitigation. ASG performs regular risk assessments for their clients, ensuring proactive protection against potential threats.

Enforce Robust Password Policies: Implement robust password policies, including multi-factor authentication, to ensure the security of your system and prevent unauthorised access. Take a leaf from online retailers and banks to gauge how strict security measures are used to protect user accounts.

Ensure that your software is always up-to-date: It is important to regularly update software and systems to ensure that the latest security patches are applied. We check and streamline all updates for our clients, guaranteeing they stay up-to-date with the latest security fixes.

Employ Encryption and backups: Encrypt important data while it’s being transferred and stored. Encryption measures are widely used for customer data to remain confidential and protected. Also, regularly and automated backups of data ensures minimal data loss and stress should something happen.

Train Employees: Regularly provide cybersecurity awareness training for employees to help them identify and handle potential threats. ASG’s advanced Linux training, cybersecurity awareness training and Project Management training courses prepare people for a professional work environment and includes a focus on security.

Implement Incident Response Plans: Creating and regularly testing incident response plans to ensure a swift and efficient response, while minimising any potential damage. Law firm, Webber Wentzel, implemented an incident response plan, which allowed them to swiftly address a ransomware attack and mitigate data loss.

Keep a close eye on any unusual behaviour: Regularly monitor systems and networks for any signs of suspicious activity and take necessary steps to identify and address potential threats. Our managed security services offer round-the-clock monitoring for small and medium-sized enterprises. The proactive approach helps identify potential threats and prevent them from escalating into major incidents.

Collaborate with professionals specialising in cybersecurity: Work together with cybersecurity experts to leverage their specialised skills and knowledge.

Developing a strong IT strategy is crucial for South African startups to effectively navigate the upcoming challenges and opportunities in 2024. Through the strategic integration of technology and business objectives, startups can attain long-term growth and a competitive edge by making informed investments in the appropriate technologies and cultivating an environment that encourages innovation.

By implementing a meticulous approach, carrying out tasks with precision, and constantly striving for enhancement, a thoughtfully devised IT strategy will enable South African startups to prosper in an ever-evolving digital dynamic.