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The Most Important Cybersecurity Terms for Business Stakeholders
In today’s rapidly evolving digital landscape, cybersecurity has become a paramount concern for businesses of all sizes and industries. As technology continues to advance, so do the threats and vulnerabilities that can jeopardize a company’s data, finances, and reputation. Therefore, it is no longer a choice but a necessity for business stakeholders to understand the fundamental concepts and terminology surrounding cybersecurity.
To help remedy that, the cybersecurity experts here at Outsource IT put their heads together to compile the eight most important cybersecurity terms that business leaders must understand. While this list is not exhaustive, it should provide a solid primer for decision-makers who have to deal with cybersecurity policy and spending as part of their role. Without further ado, here are the terms that made our list.
1. Ransomware
If there is a single cyber threat that every business leader should understand, it is the threat of ransomware. This is a type of attack in which a third-party gains access to a protected business system, steals the data it contains, and encrypts the system using specialized software to lock legitimate users out. Subsequently, the attacker demands payment in exchange for not releasing the stolen data to the public and for restoring access to the encrypted system.
It is a threat that is as pervasive as it is potentially damaging. According to Verizon’s Data Breach Investigations Report, 25% of cybersecurity incidents in 2022 involved ransomware. Furthermore, there are no favorable outcomes when dealing with ransomware. In most cases, victimized companies that refuse to pay the ransom end up spending a significant amount to restore their systems and prevent further attacks. Conversely, those that do pay the ransom fare no better. According to some studies, as many as 80% of businesses that comply with ransom demands end up facing subsequent attacks because they have demonstrated a willingness to cooperate with their attackers.
2. Malware
The next important term that business leaders should understand is malware. It is a fusion of malicious software and refers to a class of software purpose-built to invade protected systems, where it can steal data, cause damage, and otherwise wreak havoc. Technically speaking, ransomware is a type of malware. However, it poses such a significant threat on its own that it is worth understanding separately.
The good news is that businesses can protect their networks and digital assets from most types of malware by using a credible endpoint protection product. Its job is to monitor network traffic and devices to detect the telltale signs of malware activity. It can then alert administrators to the threat and take automated steps to combat it.
3. Phishing
Phishing is the cybersecurity term that describes a particularly effective form of social engineering attack. Typically, it involves fraudulent emails or other messages designed to trick a business’s employees into divulging access credentials or other sensitive information. Attackers use phishing attempts to find an easy route into a business’s protected systems, and it is shockingly effective.
At last count, over 90% of all cyberattacks began with a phishing campaign, making it the most critical threat for businesses to defend against. By doing so, they can fend off the vast majority of data breaches and other cybersecurity incidents. Moreover, defeating phishing requires nothing more than employee cyber education and vigilance, both of which are cost-effective.
4. Encryption
Since most major business cybersecurity incidents involve data theft, it is crucial to understand the term encryption and its significance. Put simply, encryption is the process of scrambling data to prevent anyone from viewing it without permission. When data is encrypted, it undergoes a complex mathematical transformation that can only be deciphered using a specific key.
Encryption serves as the foundation for many modern cybersecurity tools and techniques, including data storage protection systems, virtual private networking, and secure data transfer via local networks. For this reason, the majority of business cybersecurity efforts typically involve, or even revolve around, encryption.
5. Two-Factor or Multi-Factor Authentication
Another critical cybersecurity term that business leaders should understand is two-factor or multi-factor authentication. This term refers to user authentication systems that require more than just a password to grant access to a protected system. For example, a common second authentication factor involves the use of single-use passcodes sent to a mobile phone. Hardware security keys and authenticator apps are also options that businesses might employ as part of a multi-factor authentication system.
6. Firewall
A firewall is a hardware or cloud-based device that resides between a business’s internal network or assets and the public internet. Its primary role is to enforce access rules to keep intruders out and safeguard business data and systems. Most firewalls incorporate some form of network traffic inspection, enabling them to detect potential threats and distinguish them from legitimate traffic. Some even include HTTPS proxies, which allow them to inspect encrypted web traffic and enforce the business’s access rules on private connections as well.
7. Data Breach
A data breach is a catch-all term for a cyberattack that involves the unauthorized exfiltration of private business data. It can take the form of a single attacker using stolen user credentials to pilfer data manually or a more intricate attack employing covert software to gradually siphon off data while remaining undetected. In any case, a data breach can be catastrophic for a business, with the average data breach incident costing Canadian businesses around 7 million dollars. Worse still, for small businesses, a data breach can spell disaster, with 60% permanently closing within six months of an attack.
8. Insider Threat
Finally, an insider threat refers to a cybersecurity risk that originates with an employee or someone else within a business organization. It is important to recognize that insider threats are not always malicious; the term includes employees who act deliberately to harm their employer, as well as those who do so through complacency or simple error. For example, an employee who falls for a phishing email qualifies as an insider threat, as does a terminated employee who uses their access credentials to steal or delete company data on their way out the door.
Cybersecurity Knowledge Is Power
Understanding the preceding terms should provide business leaders with a solid knowledge base as they venture into the realm of cybersecurity. However, it is always a wise choice to have a cybersecurity expert available to fill in any knowledge gaps and offer guidance. Outsource IT offers a range of business IT services , including direct support and consulting, that can assist any business in comprehending and managing the cybersecurity threat landscape. Feel free to get in touch with one of our knowledgeable account managers today to harness the expertise and extensive cybersecurity knowledge of our experts.
