Business Insights
How to protect your data and reduce digital risk

Article 7 min read Updated February 17, 2026

Cyber threats keep evolving, but a few practical steps can safeguard your business.

Digital tools make running your business easier—but they also introduce new risks. From cyberattacks to Artificial Intelligence (AI)-driven scams, digital threats can target any small business.

The good news: A few basic precautions can shield your business from most threats. Here are practical steps to help you stay secure without a big IT budget.

1. Know the risks

The more you understand the potential threats, the better you can protect your business. Every business, no matter the size, has to face cyber threats that change quickly. Watch for:

  • Common threats such as smishing or vishing, ransomware, malware, data breaches, and business e-mail compromise. Criminals can spoof or hijack real email accounts, so never rely solely on an e-mail's appearance when approving payments or sharing sensitive information.
  • AI-powered scams including deepfake voices (AI-generated fake audio or video), realistic phishing attempts, and fake invoices
  • Added exposure from remote work, making secure remote access essential
  • Trusted partner/imposter scams, where fraudsters pose as someone trusted to obtain login credentials or security codes

Learn more from the Cybersecurity and Infrastructure Security Agency (CISA): https://www.cisa.gov/cyber-guidance-small-businesses

2. Lock down your basics

Even though today’s threat environment can feel overwhelming, simple safeguards can dramatically reduce your risk. To better protect your business and personal data:

  • Install firewalls and antivirus software on all devices
  • Turn on automatic updates for operating systems, apps, and routers. To update routers or other network devices, look for instructions on the manufacturer’s page or login portals.
  • Secure Wi-Fi with strong encryption (Wi-Fi Protected Access 3 (WPA3) if possible) and separate guest and internal networks.
  • Use Virtual Private Networks (VPN) for remote workers
  • Follow the principles of least privileged access and dual controls. Only give employees the access they truly need, and require two people to approve major actions.

Explore more in the Small Business Administration (SBA) Cybersecurity Guide: https://www.sba.gov/business-guide/manage-your-business/strengthen-your-cybersecurity

3. Strengthen logins

Software protections matter, but strong log-in practices that you and team members use are just as critical, especially for sensitive systems and data. Here are just a few ways you can better insulate your data from fraud:

  • Use strong, unique passwords or a password manager
  • Require multi-factor authentication (MFA) for email, banking, and cloud services
  • Consider the use of phishing-resistant authentication methods, such as passkeys
  • Never enter login details on a site you can’t verify is legitimate

Learn more from the Federal Trade Commission (FTC)’s Cybersecurity for Small Business: https://www.ftc.gov/business-guidance/small-businesses/cybersecurity

4. Back up and monitor

Regular, secure backups are essential for business continuity. So is active monitoring—why you should:

  • Back up all data securely to the cloud or an off-site location—or both. When using cloud services, leverage reputable providers that offer encryption and access controls.
  • Consider immutable backups. These data copies cannot be modified, overwritten, or deleted for a set retention period.
  • Monitor system and device activity. Late-night logins and large file transfers often signal trouble.
  • Watch for AI-driven anomalies, such as sudden automated requests or fake voice calls

Find best practices from the National Institute of Standards and Technology (NIST): https://www.nist.gov/cyberframework

5. Train your team

Your employees are your first line of defense. Consistent training can turn them into early-warning sensors against cyber threats.

  • Teach employees to spot phishing and AI-generated scams
  • Instruct them to always verify unusual requests by phone or in person—using a trusted number and the STOP / CALL / CONFIRM method, not just calling the number provided in the email or text request
  • Make reporting suspicious activity easy and judgment-free

6. Use free government resources

Federal government agencies offer up-to-date guidance at no cost. These resources include:

7. Risks for small businesses using AI

Using artificial intelligence (AI) can boost productivity—but mishandled AI creates its own set of risks:

  • Data privacy: Know how AI tools store and protect sensitive information.
  • Bias and compliance: AI outputs can inadvertently violate federal or state regulations.
  • Security: AI systems can be hacked or manipulated. If you use AI tools installed directly on your devices (not cloud services), keep them updated. For cloud based AI tools, review the provider’s security practices and limit who can access sensitive prompts or outputs.
  • User prompts: Ensure users are trained in what data is safe to input into prompts (consider restrictions on customer or employee data)
  • Over-reliance: AI lacks human judgment so always review critical outputs
  • Supply chain: Consider supply chain impacts when leveraging AI. This includes understanding which vendors your AI tool relies on and how those vendors protect data.

8. Have a response plan

Even with strong defenses, incidents can occur. Preparing now can shorten the recovery time.

  • Create a simple incident plan that includes who to call, customer and legal notifications and recovery actions (including all internal roles and responsibilities).
  • Practice your plan twice a year
  • After any incident, update the plan and apply lessons learned
  • Consider storing backups of this critical documentation offline.

Digital risks evolve quickly – but with a handful of simple habits, you can stay ahead.

Technology is changing rapidly, and AI is making scams more convincing.

But you’re not powerless. With strong passwords, multi-factor authentication, backups, employee training, and free resources, you can protect your business without major costs or extra manpower.

Related Insights

View more