Cybercrime prevention - what every business needs to know
Cybercrime does not discriminate by business size. While high-profile attacks on large companies often make the news, small and medium businesses are frequently targeted because they can often be easier to breach. Whether you employ two people or two hundred, your customer data, bank accounts, systems, and reputation can all be valuable to cyber criminals.
Cybercrime can disrupt operations, impact cash flow, damage customer trust, and take valuable time and money to fix.
Recent research from Netsafe New Zealand and the Global Anti-Scam Alliance found that 82% of New Zealanders encountered a scam in the past 12 months and almost one in four adults reported losing money. The same research estimated that scams cost New Zealanders around $3 billion in 2025, highlighting the growing impact that cybercrime and online fraud are having on individuals and businesses.
What is cybercrime and examples?
Cybercrime is any criminal activity carried out using computers, mobile phones, email, websites, or online systems. Common examples include:
- Phishing: A scammer sends an email, text message, or creates a fake website that appears legitimate. The goal is to trick someone into revealing passwords, banking details, or other sensitive information.
- Ransomware: Hackers encrypt a company’s files with software that locks a business out of its systems or files. Criminals then demand payment to restore access.
- Invoice fraud: A scammer intercepts or imitates communications and changes bank account details on an invoice, resulting in payments being sent to the wrong account. This occurs when a cybercriminal gains access to, or impersonates, a business email account and requests urgent payments or sensitive information.
- Password attacks: Weak, reused, or stolen passwords allow cybercriminals to access email accounts, cloud systems, banking platforms, and business applications. This can happen when an employee uses the same password across multiple websites, and a previous data breach exposes those credentials.
- Data breaches: Sensitive information, such as customer details, employee records, or financial information, is accessed or stolen without authorisation.
- Website attacks: Hackers exploit vulnerabilities in a company’s website to steal data, redirect visitors, or disrupt operations. An example is when an online booking system or contact form is compromised.
5 practical ways to reduce your risk of cybercrime
- Use multi-factor authentication (MFA or 2FA): This requires an additional verification step when logging in, such as entering a code sent to your phone. It can help protect your business systems and accounts if a password is compromised.
- Verify payment requests: If a supplier advises that their bank account details have changed, verify the request by calling them using a trusted phone number. Never rely solely on information contained in an email.
- Keep software up to date: Software updates often include security fixes that address newly discovered vulnerabilities. This applies to computers, mobile phones, websites, accounting software, and cloud-based systems.
- Train your team: Many cyber incidents start with a simple mistake, such as clicking a malicious link or opening a suspicious attachment. Regular training can help staff recognise warning signs before they become a serious issue.
- Use strong, unique passwords: Reusing the same password across multiple systems increases the risk of several accounts being compromised if one password is exposed. A password manager can help staff create and securely store unique passwords.
Common FAQs about cybercrime & prevention
What is the most common type of cybercrime affecting businesses?
Phishing remains one of the most common cyber threats facing businesses. It involves fraudulent emails, messages, or websites designed to trick employees into revealing passwords, financial information, or other sensitive data. A single click on a malicious link can sometimes be enough to compromise business systems.
Are small businesses a target for cyber criminals?
Yes. Small businesses are regularly targeted by cybercriminals because they often have fewer cybersecurity resources and controls in place than larger organisations. Cybercriminals are generally looking for vulnerabilities they can exploit, regardless of a business’s size.
What should a business do after a cyber security incident?
Does cyber insurance cover cybercrime and ransomware attacks?
Cyber insurance can help businesses manage the financial and operational impact of a cyber incident. Depending on the policy, cover may include data recovery costs, business interruption, cyber extortion, legal expenses, and access to specialist response teams. Some policies may also respond to ransomware attacks and provide support throughout the recovery process.
Understanding the options available can be complicated. If you would like to learn more about cyber insurance and whether it may be appropriate for your business, the team at RIVAL Wealth can help.
This information is of a general nature and is not intended as personalised financial advice. RIVAL Wealth is a Financial Advice Provider (FAP) licenced by the Financial Markets Authority to provide financial advice. Our disclosure document is located at rivalwealth.co.nz or a written copy is available on request
