Security

How a Company Can Legally Protect Itself From Cyber Attacks

data protection
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Improving technology and digitization are generally wonderful things for modern businesses. One unfortunate side effect of them, however, is that they have helped usher in more severe cybersecurity threats. As companies grow increasingly digital, and their technology grows increasingly sophisticated, hackers have gained more opportunities to exploit and more sophisticated ways to do so. Breached systems remain common; data theft is more prevalent; and a widespread ransomware crisis is only getting worse.

cyber attack

All of this only means that companies need to be more diligent than ever about protecting themselves against cyber attacks. And there are a few particularly effective ways to legally do just that.

Practice In-House Security Measures

The most effective way to legally guard against cyber attacks is to take advantage of business-oriented cybersecurity tips that can be practiced in-house. On the most fundamental level, these include things like improving password protection on company devices and/or software programs. They may also include doing formal IT cybersecurity training. And a particularly diligent company might consider hiring an outside IT company (or even an individual expert) who can come in and boost security in a lasting and effective way. These ideas can ultimately help to weave cyber security into a company’s culture.

Structure as an LLC

In addition to guarding against security threats, today’s businesses also need to consider how to guard against the effects of those threats. One of the simplest yet most effective ways to do so is to simply establish or restructure the business as an LLC (Limited Liability Company). There are various benefits to this kind of structure when it comes to how a business is organized or set up to grow, but where security is concerned an LLC offers protection for the company owner(s) in the event that there is a data breach. This company structure legally separates ownership’s personal assets from those of the company, such that there is no personal liability for lost data or other effects. So, while the ideal situation involves preventing attacks in the first place, this is still a valuable security measure to consider.

Purchase Liability Insurance

As a follow-up to the above point, modern company owners should also consider liability insurance as another fail-safe against cyber-attack damage. As with the LLC structure (though in a different way) it helps to protect personal assets from being at risk in the event that business assets are compromised.

Handle Software Proactively

From basic communication and file-transfer programs, to cyber-security software, to VPNs, there are all kinds of digital tools that factor into today’s businesses’ cyber-security efforts. One other simple thing these businesses can do to remain on top of security is to ensure that all of these programs are patched and upgraded as needed. This is a matter of maintenance, and requires minimal effort, but it can make a meaningful difference. Outdated software programs can be vulnerable to hackers who have learned how to exploit them, and in some cases may be outdated specifically because more secure updates were released. Staying on top of all this and handling software proactively is essential for modern digital security.

Keep Data Organized & Off-Site

Another key internal practice for companies seeking to prevent cyber attacks is to keep data organized, tidy, and preferably off-site. Today, this tends to mean embracing cloud data management systems. Even beyond security, there are a lot of reasons that cloud computing is ideal for modern businesses: They save money, they’re more agile, and they fit the more spread-out nature of work increasingly being adopted today. But crucially, cloud data management also removes valuable company data from on-site hardware and houses it instead in a more secure online environment. It is often easier to keep organized, and with proper security measures it can be more difficult for a cybercriminal to breach.

These strategies all require some time and effort. But they are also legal, reasonable, and effective ways to guard against cyber attacks in today’s increasingly challenging digital landscape.