A cyberattack on your salon may be more likely than you think. BizCover breaks down why and how salon owners can protect their businesses against the financial fallout.

Small businesses are big targets for cybercriminals. The Australian Cyber Security Centre (ACSC) received a cybercrime report every six minutes in 2023. And with over 40 per cent of cyberattacks targeting small and medium businesses in Australia, there’s a good chance your salon could be next.

Why your salon may not be cyber-safe

Many small businesses—including salons—are unprepared for a cyberattack. This makes them an easy target for cybercriminals, who often prefer to hit several poorly guarded businesses rather than tackle a well-protected corporation.

So, what makes salons such a great target?

• You have things worth stealing. Customer data, especially payment info, is valuable to cybercriminals. But they may also target your bank accounts by requesting fraudulent payments or using ransomware to hold your systems hostage until you pay them.
• You use technology to run your salon. Computers and the internet make business easier, but they also create risk. Accepting credit card payments, using email, and even having a website and social media accounts are common entry points for cybercriminals.
• You might not understand the danger. If you don’t think your salon is at risk, then you may not be on the lookout for common cyber threats. And like many others, you and your staff may not know how to spot them.
• You’re short on time. Running a salon or beauty business can be tough. With only so many hours in the day, cybersecurity might not be a priority.
• You rely on third parties to run your business. Cybercriminals can exploit relationships with suppliers and partners to hack into your systems.
• You might not have the budget. Your cybersecurity spending may be low (or even zero), particularly if your budget is tight or profit margin is razor thin.
• You may not know who to turn to. Finding an IT professional after a cyberattack takes time, giving cybercriminals more opportunity to steal data, initiate unauthorised money transfers, and generally wreak havoc on your business.

Practical steps for protecting your salon

It’s hard to stay ahead of cybercriminals. However, even small steps can help salon owners and staff avoid many cyber threats. To help protect your salon against cyberattacks, breaches and other incidents:

• Learn how to spot common threats. The cyber.gov.au website has free resources to help small businesses recognise scams, dodgy emails, and more.
• Secure your systems. Firewalls, anti-virus software, and security updates can stop many cyberattacks. Consider installing them on all your salon’s devices—computers, tablets, mobile phones, and POS devices—if possible.
• Back up your data. Regularly backing up business files could help you avoid data loss and can be used to rebuild your systems after an attack.
• Hire a cybersecurity expert. Getting help from a pro (if your budget allows) can boost your salon’s cyber defences.

A Cyber Liability insurance safety net

So, what happens if a cyberattack hits your salon despite your best efforts? The cost of getting back to business as usual could be expensive. Cybercrimes reported to the ACSC cost small businesses an average of $46,000 per incident in 2023—no small amount for a small business!

That’s where it could pay to have Cyber Liability insurance. These policies cover losses from claims arising from data breaches, business interruption and remediation costs following an actual or threatened data breach. That could help you pay for expenses like investigating the incident, lost income while it’s resolved, and notifying affected customers.

Cyber Liability policies typically offer 24-hour incident response services that can also help you contain and recover from a cyberattack. This can greatly reduce the impact of cyber incidents and get your salon back to business as usual faster.

Switch & Save with BizCover

Protecting your salon against cyberattacks doesn’t have to be dramatic. Taking steps to secure your systems and recognise threats can go a long way towards making your beauty business cyber-safe. And when all else fails, Cyber Liability insurance can help you turn around an ugly situation.

BizCover has helped over 8,500 salons and barbershops compare and buy small business insurance in minutes. Get Cyber Liability quotes from selected leading Australian insurers today and start protecting your beauty business!

Visit www.bizcover.com.au to get started.