Data and Network Security Best Practices for Information Technology (IT) Businesses: Reducing Risks and Ensuring Safety of Client Data *

IT Businesses are targets for cyber-attacks as they hold sensitive client data, personal information, and intellectual property. A cyber-attack on a technology business often provides hackers with opportunities to reach multiple businesses in the one attack (supply chain attack).

With the rise in cyber threats and data breaches (Per the Office of the Australian Information Commissioner, 9% increase from Jan-June 2023), its important technology businesses implement practices to secure their data.

Below are important data security best practices that IT businesses can consider implementing to enhance their cybersecurity posture and try minimising the risk of a detrimental cyber-attack. 

Implement Multi-Factor Authentication (MFA) *

Multi-Factor Authentication (MFA) may significantly reduce the likelihood of unauthorised access. By requiring users to provide multiple forms of identification (such as a password and a mobile authentication code), MFA adds an extra layer of security. This practice is especially useful for protecting sensitive data and is a key requirement for many regulatory frameworks. 

Regular Data Backups and Recovery Plans *

Data backups are important for minimising disruptions in the event of data loss due to cyber incidents, hardware failures, or natural disasters. Regularly backing up critical data, ideally to a secure offsite or cloud-based location, can enable rapid data recovery and reduce downtime. Additionally, a well-structured recovery plan may improve resilience by providing a step-by-step approach to restore operations and prevent data loss.

Conduct Employee Training and Awareness Programs *

Employees are often the first line of defence against cyber threats. Regular training on data security practices, such as recognising phishing emails and avoiding unsecured networks, may reduce the risk of accidental breaches. A culture of cybersecurity awareness within the workplace can empower employees to follow best practices and avoid risky behaviours, such as sharing passwords or using unapproved software.

Use Encryption for Sensitive Data *

Encrypting sensitive data—both in transit and at rest—adds a layer of security by ensuring that unauthorised users cannot access or interpret the information. Implementing encryption standards, especially for data stored in the cloud or on portable devices, can help meet regulatory requirements and enhance data confidentiality. Australian standards, such as the Notifiable Data Breaches (NDB) scheme under the Privacy Act 1988, encourage encryption for sensitive data protection.

Implement Strong Access Controls *

Limiting data access based on employees’ roles can reduce the risk of internal data breaches. Access controls may include limiting access to sensitive files, requiring authorisation for specific systems, and regularly reviewing access permissions. This approach aligns with the principle of “least privilege,” ensuring employees only have access to the information necessary for their roles, which can help in minimising data exposure.

Maintain Regular Software Updates and Patching *

Keeping software and systems updated is fundamental for data security. Hackers often exploit known vulnerabilities in outdated software, which can put business data at risk. Regularly updating systems, applications, and security software and promptly applying patches can mitigate vulnerabilities and keep systems secure against new threats.

Monitor and Audit Data Access *

Monitoring who accesses data and when may help identify suspicious activities early. By using security information and event management (SIEM) tools or access logs, businesses can keep track of data access and generate alerts for any unusual activity. Regular audits of data access and security protocols may also reveal vulnerabilities that need attention, enabling proactive risk management.

Develop a Comprehensive Incident Response Plan *

An incident response plan (IRP) outlines the actions to take in the event of a cyber incident. An IRP typically includes detection, containment, eradication, recovery, and post-incident review stages, which may help in limiting the damage and restoring normal operations swiftly. This IRP may include business insurance for IT businesses as part of their plan.Small businesses should consider testing their incident response plan periodically to ensure all employees know their roles and can act quickly when an incident occurs. 

Partner with Trusted Security Vendors *

For many IT businesses, outsourcing specific security functions to reputable vendors may be a practical approach. Vendors specialising in cybersecurity, data protection, or cloud services can offer access to advanced tools and resources that might otherwise be cost-prohibitive. However, it is important to conduct due diligence, ensuring that any third-party vendor complies with data security standards and aligns with the business’s security goals.

Comply with Australian Data Privacy Regulations *

Australia’s Privacy Act 1988 and the Notifiable Data Breaches (NDB) scheme mandate that businesses take reasonable steps to protect personal information and notify individuals if a data breach occurs.  IT businesses should ensure they understand these requirements and apply appropriate data protection measures to avoid penalties and maintain customer trust.

Cyber insurance *

Cyber insurance can protect businesses from the cost if a cyber-attack were to occur. Including, cyber event response costs (e.g., IT forensics, virus extraction, legal costs), losses to the business and losses to other business. In addition, some cyber insurers provide complimentary services including dark web monitoring, assistance with incident response plans, real-time cyber threat notifications.

Final Thoughts *

By implementing these data security best practices, IT businesses in Australia may reduce cybersecurity risks and align with regulatory standards. A proactive approach to cybersecurity—combined with regular updates, employee awareness, and robust incident response planning—can empower small businesses to safeguard their data assets, protect customer information, and support compliance efforts.
 

Disclaimer: The content of this blog article is intended for general informational purposes only and should not be considered as professional advice. While we strive to ensure accuracy, we make no guarantees about the completeness or reliability of the information. For guidance regarding what and how much business insurance cover you need, we recommend consulting with a business insurance broker. Any actions you take based on any information provided here are at your own discretion.