8 Cybersecurity Risks Startups Overlook

Although it shouldn't be, cybersecurity is low on far too many startups' priority lists. It's not excusable, but digital safety taking a backseat is understandable, given modest budgets and a focus on building products potential investors will find appealing.

While awareness is growing, even security-conscious startups have blind spots. Here are eight of the most overlooked cybersecurity risks and what your startup can do to mitigate each one.

1. Lack of or Inadequate Data Backups

Few startups lack a data backup strategy, as the ransomware attacks they would otherwise be susceptible to could be their undoing. Advanced ransomware can now lie dormant and corrupt accessible backups before activating, leaving you without recovery options.

Account for such attacks by maintaining backups off-site and ensuring at least one doesn't have internet access.

2. Weak or Non-Existent Password Policies

Third-party tools and services are essential for startup operations, meaning each employee has dozens of login credentials to administer. Without a proper policy, they'll resort to shortcuts like weak or reused passwords, leaving your systems more vulnerable to credential-based attacks and resulting data breaches.

This is why your startup's priority should be to integrate a password manager for IT teams, even if those "teams" currently consist of founders or employees wearing multiple hats in your early stages.

Password managers simplify and help enforce related best practices. They generate strong and unique login details for each account and store them in an encrypted vault. Integrating one helps protect every employee's account and monitor their usage while also making it more convenient through secure autofill and temporary sharing with teammates.

3. Shadow IT

Fast-paced startup environments encourage employees to think outside the box. However, when more innovative team members feel constrained by existing security tools, they often experiment with unauthorized alternatives, creating potential security vulnerabilities. The latest image generator or project management tool might help drive their innovations, but it might also introduce cybersecurity risks that IT-sanctioned tools won't.

Startups need to educate employees about such risks and create a policy outlining which tools are acceptable for employees. But, to strike a balance, they should also provide alternatives and create an approval process for employee-suggested tools.

4.   Cloud Misconfiguration

The cloud is increasingly becoming many startups' native environment. However, such trust comes with responsibilities some employees might not be aware of. Cloud misconfigurations aren't just the bane of startups – even a giant like Toyota suffered an extensive breach due to improper permission settings.

Stringent access controls and regular audits are effective countermeasures to avoid such destinies. Their implementation ensures all users have permissions in line with their clearance and scope of work. It's also advisable to check encryption settings and affirm that data is protected at rest and in transit.

5. Targeted Attacks

Startups are naturally thrilled when they achieve broader recognition after launching successful products. However, positive attention also puts them on attackers' radars.

More sophisticated cybercriminal collectives will approach such tempting targets cautiously, coordinating attacks weeks in advance and paving the way with first-wave phishing attacks.

Threat intelligence tools let startups take a proactive approach to mitigation. They monitor the dark web for early mentions of your company and any associated compromised accounts. Such tools also scan your internet-facing devices and networks, identifying vulnerabilities before they become serious issues endangering your startup.

6. Not Enforcing Automated Updates

Neglecting to apply the newest security patches and switch to newer, more feature-rich versions of software you use may seem shortsighted. Still, some startups delay these updates for a myriad of reasons. It could be that their IT team might be too small and needed for higher-priority tasks.

Development pipelines might depend on software versions with long-term support. Moreover, frequent updates can be frustrating as they introduce downtime.

Even so, automatic updates guarantee protection from known exploits and reduce breach risks. Prioritize patching critical vulnerabilities and set up a schedule that doesn't interfere with most employees' duties.

7. Lack of Employee Awareness

A focus on growth, few or no cybersecurity experts on the team, and overconfidence in purely technological solutions leave careless startups blind to the danger unaware employees represent.

Such employees can unknowingly engage in various harmful behaviors, from accessing company resources through unsafe public Wi-Fi when working remotely to falling for and not reporting social engineering attacks.

Rather than conducting one-off workshops for formality's sake, commit to ongoing cybersecurity training and development. Set aside a budget and engage either your own specialists or outside services to teach your employees about the most common cyberattacks that can happen if they fail to follow security protocols, click suspicious links, use weak passwords, or share sensitive information through unsecured channels.

8. Third-Party Vendors and Supply Chain Attacks

Diligent startups with comprehensive cyber defenses and incident response plans may still suffer attacks due to external factors. A third-party vendor may not be as thorough.

A dependency or API you rely on could be compromised.

Therefore, it's essential to vet all third parties to ensure their quality of service and commitment to upholding cybersecurity regulations.

Secure Your Growth Journey

Although cybersecurity might not be at the top of your mind when considering your startup, don't leave it as an afterthought, either. By addressing these eight important blind spots, your startup can protect its future, reputation, and innovation. A small investment into cybersecurity now will save you a lot more money than the cost of a cyberattack would be.