Running a successful hair salon is about more than delivering a great service. In 2025, it’s also about managing the digital tools that help to keep your business running, discovers BizCover.
From online booking systems and digital payment platforms to client record databases, many salons rely on technology to streamline operations and enhance the customer experience. However, as reliance on digital systems increases, so does the risk of cyberthreats.
Your business could be at risk of a cyberattack
Many small businesses assume that cybercriminals only go after large corporations or government agencies, but hackers often target small businesses because their cybersecurity measures are often weaker than those of bigger organisations.
What makes salons targets for hackers?
Salons collect and store valuable customer data, making them attractive to cybercriminals. Some of this information includes client contact details, payment information, loyalty program information and employee payroll and tax details. Hackers can use this information for identity theft, financial fraud, or they may even sell it on the dark web for a profit.
Impacts of a cyberattack
A data breach can expose sensitive client information, disrupt business operations, and lead to financial losses.
Last year, the Australian Signals Directorate revealed that a single cyber incident could cost a small business an average of $49,600, which is up 8 per cent from the previous year. These costs could come from lost revenue, legal fees associated with handling a data breach, cyber extortion or ransom payments, or IT recovery fees.
The fallout of a cyberattack is not always just financial. The reputation of the salon could also be severely damaged. Clients trust their hairdresser with their personal details, which often includes payment information. Their trust in the salon could be broken if they are negatively impacted by a cyber breach. New clients may also be hesitant to book if they believe that their information and data is not safe.
What is Cyber Liability insurance and does my salon need it?
Cyber Liability insurance is designed to help protect a business from claims and support profitability in the event of a cyber breach or attack. Costs associated with defending a cyber claim are also covered.
Examples of the types of risks Cyber Liability insurance can assist with are unintended loss or release of customer personal information, cybercrime, ransomware and business interruption due to a cyber event.
Some Cyber Liability policies may also entitle you to 24/7 cybersecurity support in the event of a breach. This can provide salon owners with the support they need from experts to quickly deal with the situation.
You may wish to consider Cyber Liability insurance if you use digital tools to help run your business – like an online booking system, a point-of-sale machine or any devices (such as a smartphone or laptop) that are connected to the internet.
Real-life hair salon cyberattack story
A hair salon owner used a VoIP – Voice over Internet Protocol – phone system for their business. Unfortunately, a hacker gained access to the telephone system and made dozens of phone calls to a premium number. This type of cyberattack is known as “phreaking”, when a hacker manipulates a phone system to make illegal phone calls.
The salon owner had no idea that their phone system had been compromised. That is, until they received their bill at the end of the month – which included $30,000 of unauthorised phone calls made by the hacker.
Luckily, the salon owner had Cyber Liability insurance. The hairdresser was covered by this policy and was able to make a claim for $30,000.
Get covered with BizCover
BizCover makes it easy for you to purchase, review or renew insurance. Visit the BizCover website today to compare multiple Cyber Liability insurance quotes from some of Australia’s leading insurance providers.
For more information visit www.bizcover.com.au