Do you always stress about the confidential data your business owns? You have a valid reason to worry because data security risks are a growing concern and the stakes have never been higher. According to a recent report, the global cybercrime cost may reach $10.5 trillion by 2025. Businesses must be vigilant about potential data theft and take proactive measures to protect themselves.

Staying a step ahead is the key, and you can do it by keeping an eye on red flags. There are several warning signs that can help you identify vulnerabilities and seal them before a breach occurs. By understanding these warning signs and taking quick action to address them, you can help protect your organization from costly and damaging data breaches. Here are the red flags you must watch out for.

Outdated software

Outdated software is one of the most significant data security risks for businesses. The worst part is that small ones get complacent about updates. Software providers release updates and patches to address vulnerabilities and threats. Using outdated software means missing out on updates and leaving your systems vulnerable to cyber threats.

Countless businesses experience data breaches because of unpatched vulnerabilities. Keeping all software up-to-date is a simple solution, so you must stay ahead of them. Update your operating systems, antivirus software, and other applications and software.

Suspicious emails

Another red flag that deserves your attention is suspicious emails. Cybercriminals gain access to business systems through phishing attacks that typically come with suspicious emails. Although these emails appear to be from a trusted source, they ask the recipient to provide sensitive information or click on a link leading to a malware-infected website.

Educating employees about how to recognize suspicious emails is the best defense against phishing attacks. Grammatical errors and spelling mistakes are warning signs. Likewise, employees should avoid the ones having an urgent tone or asking for sensitive information.

Insider threats

Insider threats are a reason to worry for an organization. According to a recent report, they are responsible for 60% of all data breaches. Such threats come from employees or insiders having access to business systems and data. The threat gets bigger in the BYOD era when people can use personal devices for work.

Strong access controls and monitoring employee activity are the best ways to protect your business from insider threats. Limit access to sensitive data to only those employees who need it and trace for unusual activity such as downloading large amounts of data. You can bring a hacker for hire to your team to monitor a suspicious employee. A hacker can get into their device and discover unscrupulous activities.

Weak Passwords

Surprisingly, weak passwords can get your business into trouble by causing dire data security risks. Cybercriminals use automated tools to crack passwords and gain access to business systems. Your systems are definitely at risk if employees use weak passwords or reuse the same password across multiple accounts.

Enforcing a strong password policy is the best way to protect your business from this risk. It includes requiring employees to use complex passwords and change their passwords regularly. Also, using two-factor authentication can provide an extra layer of security.

Absence of secure Wi-Fi networks

Public Wi-Fi networks are a norm, with more employees working remotely. However, these networks are often unsecured, so cyber criminals can easily intercept data being transmitted over the network. You cannot afford to lose confidential files just because employees are not careful enough,

Educating employees about the perils of unsecured Wi-Fi networks is a good start. Encourage them to use virtual private networks (VPNs) to access business data securely over public Wi-Fi networks. You can do your bit by providing a secure Wi-Fi network for employees who work remotely.

Third-party risks

You cannot overlook the data security risks linked with third-party vendors and suppliers because they make an equally daunting red flag. Sharing sensitive data and systems access is risky, no matter how diligent they are and how much you trust them.

It's crucial to vet all third-party vendors carefully and ensure they have strong data security policies to safeguard their digital assets. You must also have clear contractual agreements that outline the vendor's responsibilities when it comes to data security.

Data security is the last thing business owners should overlook because a breach affects finances, customer trust, and reputation in the long run. Failing to give attention to security may lead to hefty penalties for non-compliance with privacy regulations. You must keep an eye on these red flags, and address them sooner than later to protect your business.