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Top security risks of remote working (and how to prevent them)

Editorial headshot of Julie Watt
The ability to work from home, a coffee shop, or anywhere with a good Wi-Fi connection has become a must-have for many employees. However, with this flexibility comes new risks, such as unsecured networks, data breaches, and cyberattacks. That’s why businesses need strong cyber protection to keep employees – and sensitive company information – safe no matter where work happens.
Remote employee on a conference call.

And, while many larger corporations have rolled out return-to-office mandates, a lot of small businesses are listening, with nearly 75% of companies with 500 employees or fewer embracing a remote workforce.

Here are some of the benefits of this popular perk:

  • Happier employees and higher retention rates
  • Increased productivity and flexibility
  • Access to top talent from around the world
  • Reduced expenses for office space, furniture, and supplies

On the other hand, employees using unsecured home networks, accessing company data on personal devices, and running outdated security software increase the risk of cyberattacks to your company.

From phishing to ransomware and social engineering, malicious cyberattacks and data breaches can be financially and reputationally crushing for small businesses. Understanding common remote working security risks can help you protect your business, empower remote employees, and create a recovery plan should you get hit by hackers.

Why remote working increases cybersecurity risks

When your employees aren’t working under one roof, controlling cybersecurity measures can be tricky, making your company seriously more vulnerable to cyberattacks.

Knowing how remote working increases cybersecurity risks can help you implement a robust protection plan. These risks can include:

  • IT teams are struggling to ensure remote devices are updated and secure, leading to delayed security updates, incorrect configurations, or improper maintenance of remote access connections.
  • Not having a centralized network makes it incredibly difficult to monitor and control access to sensitive information.
  • Employees using personal devices that don’t have the same security controls as company-issued devices are more vulnerable to phishing and malware attacks.
  • Workers accessing unsecured networks and routers provide easy entry points for hackers to compromise the company’s entire network.
  • Employees lacking direct oversight or in-person verification are more susceptible to human error, such as clicking malicious email links.
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Top remote working security risks for small businesses

As more small businesses adopt remote work policies, hackers are taking notice. Since the start of the pandemic and the subsequent surge in working from home, cybercrime has increased by 300%. Small businesses traditionally lack the technology and security protocols, making them easy targets for hackers.

Here are some of the top cybersecurity risks for remote-working businesses:

Social engineering attacks

By impersonating someone you trust, such as a co-worker, vendor, or bank employee, social engineering attacks try to manipulate you into handing over sensitive information or large amounts of money.

These sophisticated cyberattacks can come in a few forms:

  • Phishing uses credible-looking emails to coerce someone into sharing confidential information or clicking malicious links that allow ransomware to access their computer or the company’s entire network.
  • Spear phishing is a highly personalized form of phishing that uses tailored messages to appear more legitimate with the hopes of obtaining sensitive information, such as passwords and other login credentials.
  • Vishing, also known as voice phishing, uses phone calls meant to trick people into giving out sensitive information.
  • Smishing, or SMS phishing, uses text messages to manipulate individuals into clicking on malicious links or giving access to private information.

With the rise in remote workers, phishing scams have substantially increased, emerging as one of today’s top cyber threats across email, social media, and text messaging platforms.

Unsecured Wi-Fi networks

Whether you’re working on the couch or at a coffee shop, chances are the Wi-Fi network you’re using doesn’t have the extra-strength firewalls and up-to-date security software most corporate networks possess.

Using an unencrypted network means anyone on the same network can access your internet activity, passwords, and other sensitive data.

Working remotely also makes you more vulnerable to Man-in-the-Middle (MiTM) attacks, where hackers create access points (APs) disguised as legitimate public Wi-Fi networks.

Let’s say you’re at a co-working space and you connect to one of these fake networks, thinking it’s someone’s hot spot. With the click of a button, you’ve opened the front door and let cybercriminals access your entire computer or smartphone.

Weak passwords

We all know it’s a lot easier to keep track of one tennis ball versus twenty. But if you make that tennis ball bright pink, it’s going to be a lot easier for someone else to catch it.

The same can be said for passwords. Using one generically worded password across all devices and accounts makes it a bright, bold target for lurking cybercriminals.

Here are a few popular ways employees weaken their passwords:

  • Using the same password across multiple business accounts
  • Using the same password on business and personal devices
  • Creating passwords with personal information or common phrases
  • Ignoring the reminders to update their password
  • Updating only one character in their password each time, such as changing an exclamation point to a period, to an ampersand

Without a strong password and good cyber hygiene, hackers can launch brute force attacks to quickly crack your credentials. Assisted by special software or bots, these cybercriminals use a trial-and-error approach to rapidly test millions of passwords per second until they land on the right one.

Personal devices and bring your own device (BYOD) risks

Your company’s chances of having a cyberattack increase dramatically when employees work on their own devices. This can be from a variety of factors, including:

  • Lacking business-grade security features, such as advanced firewalls and anti-virus software
  • Using an outdated operating system (OS) or applications
  • Mixing personal and company information makes it harder to secure sensitive data and easier to share it with outside parties
  • Limiting IT’s visibility into your system’s security protocols and network activity

Not using multi-factor authentication (MFA)

In addition to passwords, implementing multi-factor authentication (MFA) on devices makes it significantly harder for cybercriminals to access your systems.

Unpatched software and outdated systems

During busy workdays, it can be easy to ignore those system update reminders. But unpatched software is a prime target for hackers, who regularly scan for outdated software they can easily exploit.

Cloud storage vulnerabilities

Using cloud storage can provide much-needed flexibility and enhanced collaboration opportunities for remote workers. On the flip side, it can make it easier for hackers and unauthorized users to access your data.

Cloud-based loopholes include:

  • Misconfiguring settings, such as incorrect access controls
  • Having insufficient access controls, including weak passwords or a lack of MFA
  • Giving employees unsecured access to cloud apps
  • Limiting IT’s ability to monitor user activity and spot security breaches

Use of unauthorized apps (shadow IT)

To make work easier, some employees will download software or use devices they prefer without getting the IT department’s approval. This practice, known as shadow IT, significantly increases the risk of data breaches, malware infections, and compliance violations.

Here are a few common shadow IT scenarios:

  • Storing work data on unapproved cloud storage systems, such as personal Dropbox or Google Drive accounts
  • Accessing company networks and downloading information on personal laptops, smartphones, and other devices
  • Discussing work-related topics or file-sharing over unapproved collaboration tools, such as WhatsApp or Slack
  • Leveraging unapproved software, including artificial intelligence (AI) tools like ChatGPT and productivity apps such as Canva or Grammarly

Lost or stolen devices

Losing a laptop or having a smartphone stolen can put your company’s sensitive data right in a hacker’s hands. Plus, it can give them a gateway into corporate networks or cloud services, which can result in larger-scale data breaches.

Insider threats

Between unhappy employees and unintentional errors, sometimes the biggest cybersecurity risks are within the organization. Here are a few ways your employees can become security threats:

  • Resentful employees who are seeking revenge or have been financially incentivized may intentionally steal, share, or damage company data.
  • Multi-tasking team members might accidentally send sensitive information to the wrong person or click on a malicious email link.
  • Employees who are unaware of the dangers of phishing attacks and weak passwords might neglect important security policies.
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Best practices to reduce remote work cybersecurity risks

Despite all the risks remote workers face when working outside of the office, implementing a strong security protocol can have a substantial impact in protecting your employees and your company.

Here are a few ways to fend off cyberattacks:

Educate your employees

  • Schedule regular, mandatory training sessions on security best practices, including how to spot phishing attempts and maintain good cyber hygiene.
  • Implement a clear response plan so employees can quickly and easily report security incidents.

Secure system access

  • Use a virtual private network (VPN) to encrypt data and provide a more secure connection to the company network from public or home Wi-Fi.
  • Implement strong, unique password policies and offer password manager tools to help employees safely create and store credentials.
  • Add an extra layer of security, in addition to passwords, by requiring multi-factor authentication (MFA) for all company logins.

Amp up network security

  • Provide company-secured laptops, smartphones, and other necessary devices.
  • Ensure all devices have the latest anti-virus software, firewalls, and operating system patches.
  • Enforce software update deadlines and enable automatic updates so employee devices stay current.
  • Introduce security features such as remote wiping, so employees or security teams can erase sensitive data from a stolen device.

Boost data security

  • Limit employee access to sensitive data based on roles and responsibilities.
  • Provide encrypted, company-approved communication tools so remote employees can securely discuss and share sensitive information.
  • Regularly monitor network activity and conduct cybersecurity audits to understand the effectiveness of your security protocols.

If your small business suffers a cyber incident, a cyber insurance policy can help pick up the pieces, covering the overwhelming costs from a data breach.

How cyber insurance helps protect your business

Even with the best cybersecurity protocols in place, you can’t stop every threat. If your small business suffers a cyber incident, a cyber insurance policy can help pick up the pieces, covering the overwhelming costs from a data breach.

There are two types of cyber insurance. First-party coverage, also known as data breach insurance, protects businesses from the financial impact of data breaches, phishing losses, or ransomware attacks, including costs for:

If a client sues your business for failing to prevent (or causing) a data breach at their company, third-party coverage can pay for lawsuit-related fees, including:

  • Legal defense costs
  • Settlements
  • Court-ordered judgments

Understanding the two types of cyber insurance can help you determine what kind of coverage your business needs.

IT and tech companies should also consider tech E&O, a policy bundle that combines errors and omissions insurance with cyber insurance. This combo policy protects against the risks and legal fees tied to data breaches.

Get the right insurance coverage with Insureon

Get free quotes for cyber insurance from top-rated insurance providers by filling out our easy online application. You can also speak with a licensed insurance agent, who can answer questions and help you find affordable coverage.

Once you find the right policies for your small business, you can begin coverage in less than 24 hours and get a certificate of insurance (COI) for your small business.

Julie Watt, Content Editor

Julie writes blog posts and site content that breaks down complex topics, provides expert advice, and helps connect small business owners with the best insurance solutions. Before joining the Insureon team, Julie worked as a copywriter and content strategist for ad agencies and in-house creative marketing teams to bring brand stories to life and connect loyal consumers with quality products. She’s built and led copy teams at companies such as T.J.Maxx, Amazon, and BISSELL.

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