Navigating Cybersecurity Compliance: Here are the Essentials Your Small Business Should Know

In the last few years, it has become increasingly clear that hackers have small businesses clear on their radar. It’s easy to assume that cybercriminals usually seek out Fortune 500 companies, but small businesses tend to be an easier target because they often lack the same kind of defenses as much bigger companies and the damage cuts deeper. It’s more crucial than ever for business owners to know the rules around data protection as a survival skill. Being a victim of a breach is a legal, reputational, and financial disaster. Regulators have noticed the frightening trends of these attacks. The United States has seen a growing legislation of state privacy laws that is re-shaping how businesses handle their data.

However, before you follow the rules, you have to know which ones apply to your industry. Many U.S. business serve clients and customers across state (and sometimes international) lines. If this is you, that means that you might be under more than one set of regulations at a time. Do you know them all? Here is a list of some major laws that impact small businesses:

1. GDPR = General Data Protection Regulation: this applies to any business around the world that uses data from EU residents. The GDPR provides clear, written permission to collect any data, has limits on how long that data can be stored, and enforces strong protections. Even if you have only a few EU clients, you need to be aware of this rule.
2. CCPA = California Consumer Privacy Act: If your business makes at least $25 million per year or handles a lot of personal data and you have clients in California, this applies to you. This rule gives CA residents the right to know what information is collected, gives them the option to deny data collection, and gives them to opportunity to choose if their information is sold.
3. New 2025 State Privacy Laws: Just this year, eight states in the U.S. have added new data laws, including Nebraska, New Jersey, and Delaware. Nebraska’s law is worth noting because it applies to all businesses, no matter their size or revenue. The specifics of the laws vary from state to state, but they all generally include client access to their data, deletion, correction, and gives them the ability to opt out of targeted advertising.

The task of keeping it all straight is certainly daunting, especially if you serve a wide range of clients geographically speaking. But there are simple tasks you can do to minimize the headache and overwhelm of it all:

1. Do an inventory of all the personal data you store. Note where it’s located, how it’s used, and who has access to it. Be sure to also look at old backups, third-party systems, and employee devices. Mapping where your data resides is a great place to start.
2. Limit the amount of data you keep. If you are collecting tons of excess data that you never actually use, adjust your collection policy to take in only what you’ll need. And when you have it, keep it only as long as you need it. Additionally, restrict access of that data only to people whose roles require its usage.
3. Create a clear data protection policy for you and your team to understand and follow. Detail how your data will be classified, stored, backed up, and deleted. Don’t forget to include a breach response plan to minimize reaction time if a breach occurs.
4. Train your employees regularly. Train new hires, certainly; but keep training your team, and on a regular basis. Engage them with annual or semi-annual cybersecurity training, how to use secure file-sharing tools, and how to create strong passwords. Most cyberattacks occur due to human error, so this element is key to your protection.
5. Require VPNs for any remote access you grant to your team, use encryption for stored files, and work with any cloud providers you might use to make sure they meet security standards.
6. Pay attention to the physical security of your data, by locking server rooms and securing portable devices. A good rule of thumb is this: if the data can be physically moved, it should be encrypted.

While the regulations surrounding data laws continue to change, they are also an opportunity for your business. When your employees and customers see that you take their privacy seriously, it can quickly set you apart from your competitors. You don’t have perfect security because no one does, but you do need to create a culture that values data and policies. If you need some advice on how to strengthen your defenses or want to know more about data laws, call us today to schedule a consultation.