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6/14/2013
12:37 PM
Doug Landoll
Doug Landoll
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Small Business, Big Target

Why SMBs are a big target of hackers, regulators, and security-conscious partners--and what to do about it

Small- to mid-sized business (SMB) owners are usually excited about an increase in exposure and attention from just about any segment of the population. But increased attention from hackers, security regulation auditors, and security-conscious customers is not likely the exposure they want.

According to Symantec's 2013 Internet Security Threat Report, the largest growth in attacks were on organizations with fewer than 250 employees, a 72% increase from 2011. In April of last year, the Office for Civil Rights fined a five doctor practice $100,000 for HIPAA security and privacy violations, arguably to send a message to all small practices that regulations apply to all. Lastly, the dreaded security questionnaire normally reserved for larger organizations has trickled down to smaller organizations providing support and services.

For years, SMBs have been somewhat resistant to demands of cyber security threats, auditors, and customer requests for greater security. It would be hard to argue that the security posture of SMBs has changed much in the past few years. So why now? How has security been pushed to the forefront of concerns of the SMB?

Three major reasons:

1) Hackers have changed the game. Typically content with owning the SMB systems (e.g., dropping rootkits, stealing private information), hackers have resorted to more noticeable attacks-- namely, ransomware. Ransomware is malware that makes its presence known to the SMB through threats (e.g., we will turn you in for your pornographic surfing habits) or ransom demands (e.g., send us $5000 or you will never see you data files again). This hacker behavior is impossible to ignore.

2) The public demands compliance. The small doctor's practice in Phoenix was not the result of a random audit but a followup from a consumer compliant regarding the practice's website posting surgery schedules. The public is aware of HIPAA, PCI, and state privacy acts. This means every one of your customers is now looking at your treatment of their information.

3) Large businesses monitor their suppliers. Enterprise businesses have matured their compliance process to the level of implementing third-party assurance processes. In short, if you access their data, then you inherit all their security and privacy requirements. Enterprise businesses are now demanding the completion of security questionnaires as part of a bid process and minimum security requirements as part of the contracting process.

On the surface, it would seem that the three factors (hackers, auditors, and security-conscious customers) are unrelated, but they all stem from the same issue. SMBs are soft targets, meaning the security controls in place are generally lacking. This has resulted in the SMB market dropping their guard. There is a clear need for improvements in the SMB security program. But simply adopting security program strategies and techniques that were designed with larger firms is difficult to justify and frankly doesn't scale.

SMBs need a practical approach and strategy designed with SMBs in mind. The following techniques should be considered:

1. Understand Your Security Requirements – Identify and understand applicable security requirements from HIPAA, PCI DSS, and Privacy Laws to RFPs and security questionnaires. Organize requirements into a single security requirements document (e.g., security framework). There are many resources available that provide mappings from various security requirements sources.

2. Define Security – Get a set of security policies that define acceptable use of your network, the required security controls of your systems, and how you plan to respond to incidents. Although templates can easily be found on the Web, be wary of "policies in a box." Take the time to create policies that reflect your organization's culture, network, and response capabilities.

3. Push Requirements on your Vendors. All contracts with outsourced services should contain a security requirements document that ensures the vendor protects your sensitive information and critical systems to the same level you do.

4. Find Pragmatic Ways to Implement Oversight. Identify the key areas in which oversight is most important. Top areas of concern are: IT services, network design, account management, and compliance. Hire an outside company to review work in these areas. Even (especially) if the service is provided by another outside service. Doug Landoll is an expert in information security for the SMB market with over 20 years experience securing businesses and government agencies. He has written several information security books and dozens of articles for national publications. He has founded and ran four ... View Full Bio

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Ariey
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Ariey,
User Rank: Apprentice
6/30/2013 | 12:59:36 PM
re: Small Business, Big Target
Problem with SMBs is that most are either not aware enough of IT security, or don't have the budget to take care of their security needs. The name of the game with SMBs and even consumers today, is automation. Proactive managed services, such as Fixico (http://www.fixico.com) that are remotely managed by experts and take care of all aspects of computer maintenance - performance, maintenance & security. Automatic managed services are affordable, because they use a cloud model, and easy-to-use, because they are geared to non-tech-savvy users.
mbshafer
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mbshafer,
User Rank: Apprentice
6/29/2013 | 12:25:00 PM
re: Small Business, Big Target
As an IT consultant with clients that include the SMB sector I have to agree completely with MarciaNWC's comment. Moreover it's even more bothersome when it's the technical people that should know better that are the cause.

Case in point is one health care facility that is an on demand client (not on contract) of mine had a problem with their wireless connection when I was out of town on an enterprise contract last year.

They had Verizon install one of their stock router/wifi units to remedy the situation and the Verizon tech set the WPA2 encryption PSK to <the_company_name>1.

As in if this had been Walmart it would have been "walmart1". Clearly a complex key that would be difficult to crack!

As I see it as long as there are no meaningful audits most of the SMB sector, particularly entities such small health care operations, will remain both ignorant of the requirements and indifferent to their implementation.</the_company_name>
MarciaNWC
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MarciaNWC,
User Rank: Apprentice
6/28/2013 | 11:32:19 PM
re: Small Business, Big Target
I'm still amazed at the lack of security I encounter at some small businesses, despite HIPAA and PCI being around for several years now.
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