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Starting a Business: Most Common Cybersecurity Mistakes Startups Make

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It is common for entrepreneurs to have ambitious goals for their startups. We know starting a new business is a risky endeavour and many people are unwilling to take that risk.

No doubt juggling with many tasks and responsibilities that come with running a new company can be overwhelming. It’s important to not forget about cybersecurity as encryption of data

As far as startup businesses and companies are concerned, security should be one of the most important items on your checklist. There are a number of steps that startups can take to improve their cybersecurity posture. One of the most important is the implementation of domain monitoring.

These tools are an essential part of any cybersecurity strategy and help you to keep track of your domain name and website security, and they can alert you if there is any suspicious activity.

Nevertheless, not all companies have those tools, particularly newly built companies. With that in mind, let’s explore some mistakes that startup organisations make regarding cybersecurity.

6 Most Common Mistakes Startups Make When It Comes to Cybersecurity

1. Failing to Have a Cybersecurity Strategy in Place

Many startups believe that they are too small to be a target for cyberattacks. However, this is not the case. Hackers are increasingly targeting small businesses because they know that these companies often have weaker security defences.

As a result, it is important for startups to have a cybersecurity strategy in place. This strategy should include both preventative measures and response plans in the event of an attack. Password managers can play a pivotal role in helping startups combat the threat of cyberattacks.

By using a password manager, businesses can ensure that all of their passwords are strong and unique. This makes it much more difficult for hackers to gain access to sensitive data. In addition, password managers can also help businesses to quickly and easily change passwords in the event that one of them is compromised.

2. Lack of Backup Expertise

Backing up data is another essential step that businesses should take in order to protect themselves from cyberattacks. In the event that data is lost or corrupted, a backup can help to restore it.

There are two main types of backups: local and cloud-based. Local backups are stored on devices such as external hard drives, while cloud-based backups are stored on servers. Startups should consider using both types of backups in order to ensure that their data is safe.

Password managers can help businesses to create and manage backups by storing passwords in a secure location. This makes it much easier to restore data if it is lost or corrupted.

3. Having unencrypted data

Encryption of data is a process of transforming readable data into an unreadable format. This makes it much more difficult for hackers to access sensitive information.

Unencrypted data could be in the form of text messages, emails, or even stored on devices such as laptops and smartphones. To protect this data, startups should consider encrypting it.

Password managers can also help businesses to encrypt their data by creating strong and unique passwords for each piece of sensitive information.

4. Lack of Two-Factor Authentication

An additional layer of security that can be added to online accounts is two-factor authentication (also known as two-step verification). It usually involves sending a code to the user’s mobile device in addition to their username and password.

While this may seem like an inconvenience, it can actually be a very effective way to protect data. Many major online services, such as Google and Facebook now offer two-factor authentication to their users.

Despite this, many startups still do not make use of this security measure. This leaves them vulnerable to attacks in which hackers gain access to accounts by stealing passwords.

Therefore, password managers can help businesses to implement two-factor authentication by generating codes that can be sent to mobile phones.

5. Response to Data Breaches

Data breaches are becoming increasingly common. If a startup experiences a data breach, it is important to have a plan in place for how to respond. This plan should be designed to minimise the damage and ensure that sensitive information is not compromised.

One of the first steps that should be taken is to change all passwords that may have been compromised. This can be a time-consuming process, but it is essential for protecting data. Password managers can help you quickly and easily change passwords in the event of a data breach.

Moreover, businesses should also consider investing in cyber insurance. It can help to cover the costs of a data breach, such as legal fees and customer notification.

6. Failure to Train Employees

Many employees are not aware of the steps that they need to take in order to keep data safe. As a result, they may unwittingly put data at risk.

To prevent this from happening, startups should provide employees with training on cybersecurity. This training should cover topics such as password management, data backup, and two-factor authentication.

Final Thoughts

Your business dreams shouldn’t be derailed by a data breach or cyberattack. What are some of the common cybersecurity mistakes you may be making? If so, it’s time to take action.

The highlighted common mistakes can all be avoided with the help of a password manager and domain monitoring software. Still, you need to stay vigilant against other growing cybersecurity threats. It helps you to be confident and focus on your business goals.


I'm a passionate full-time blogger. I love writing about startups, how they can access key resources, avoid legal mistakes, respond to questions from angel investors as well as the reality check for startups. Continue reading my articles for more insight.

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