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The Importance of Business Strong Security Measures

Jan 29, 2024

IT security is more crucial than ever for businesses. As we increasingly rely on integrated computer systems and cloud-based data storage, the risk of cyber threats disrupting operations or compromising sensitive information is on the rise. To tackle this, implementing robust security measures through technologies like firewalls and employee training is essential. The numbers and sophistication of cyber-attacks are growing each year, posing a rising risk to businesses of all sizes.

Numbers are Growing

The number and sophistication of cyber attacks on businesses continue to grow exponentially each year. Phishing scams, ransomware, data breaches, and other threats pose a rising risk to companies of all types and sizes. Attackers have a variety of motivations, from hacking to steal financial data or intellectual property to implanting viruses that could hamper IT systems. No business can assume they are immune from the expanding threat landscape.

Let's face it: you probably need to improve your IT security. No business should be kicking back thinking they're immune from this expanding threat landscape.

Compliance Requirements are Increasing

Governments and industry regulators around the world are enacting stricter IT standards and compliance requirements to compel businesses to enhance their cybersecurity safeguards. Examples include the EU’s General Data Protection Regulation, which requires protecting individuals’ private information, and industry-specific rules for the protection of sensitive customer data in sectors like healthcare and finance. If businesses fail to meet compliance requirements, they face substantial financial penalties and loss of consumer trust.

The Costs of Attacks are Rising

Data breach attacks can bring an unprepared business to its proverbial knees. A company may need to pay a large ransom to regain control of its systems. But even more concerning are downstream costs like computer system repairs, legal liabilities, falling stock prices, and long-term reputational damage to customers. IBM has stated the average total cost of a corporate data breach was $4.45 million in 2023. The easiest way for businesses to avoid these rising, potentially company-ending costs is through improved IT security on the front end.

Firewalls are Critical Lines of Defense

One of the most vital components for securing a business's IT infrastructure is a properly configured firewall. Firewalls create a barrier between a company's internal networks and external threats online, controlling access and blocking malicious traffic. They provide a first line of defense against hackers, malware, ransomware, and other external attacks. Businesses without an enterprise-grade firewall or equivalently advanced network security technologies leave the door open for cybercriminals to infiltrate their systems. Investing in powerful firewall products and services and setting detailed rules for traffic allowed in and out should be standard practice. Regular firewall software updates and patches are also essential for addressing new security vulnerabilities that arise. The risks posed by emerging cyber threats only increase over time without robust firewall protections across on-premises and cloud-based networks. Just as every home needs locked doors and perimeter alarms, every business relying on online data requires an advanced firewall guarding its digital borders.

See:  Fintech & Cybersecurity: Key Risks and Solutions

Simply put, neglecting to invest in IT security puts companies at tremendous and unnecessary risk. Both malicious cyber threats and compliance requirements will only expand in the coming years. Implementing regularly updated security tools, providing employee education, monitoring for intrusion attempts, and maintaining comprehensive incident response plans are essential steps that all modern businesses should take to protect their data and computer infrastructure. The threats are real and substantial. But so, too, are the solutions available for securing business technology today. Those companies that embrace strong IT security will have a major competitive advantage.


NCFA Jan 2018 resize - The Importance of Business Strong Security MeasuresThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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