Data loss, the top threat for small and medium-sized enterprises in the digital transformation process

Chuyển đổi số: Cần chú trọng bảo vệ dữ liệu

Businesses may face the risk of completely losing important data due to cyber attacks. (Source: CRMviet)

Small and medium enterprises (SMEs), which account for nearly 97% of Malaysia’s total businesses, continue to face numerous cybersecurity-related challenges due to a lack of infrastructure and human resources.

Ms Sandy Woo, Director of cloud computing consultancy ECloudvalley, said cyber attacks and asset misappropriation following data loss are the top threats to SMEs. As Malaysia promotes the adoption of cloud computing solutions in business operations, these risks have highlighted the urgent need for businesses to enhance their security measures.

Data loss can affect business operations, causing financial losses, reputational damage, and loss of customer trust. In addition, Ms. Woo said that due to lack of resources and underestimation of the importance of information security, SMEs often have difficulty recovering operations and face increasingly sophisticated cyber attacks.

Cyber-attacks can be used to cripple operations and threaten businesses, forcing them to choose between paying a ransom or losing their critical data. However, a lack of attention to data security has made it easier for cybercriminals to gain access to critical information and data. Therefore, SMEs need to pay more attention to training their human resources and have continuous monitoring measures to minimize errors.

Account hijacking due to lack of security focus has also led to an increase in crimes. Ms. Woo said that the lack of multi-factor authentication has made it easier for criminals to infiltrate and control the entire system. Therefore, businesses need to limit access to important data, strengthen authentication to minimize risks, and regularly update systems, assess security vulnerabilities, and increase investment in human resources to prevent threats.

As Malaysia embarks on a digital transformation journey, businesses need to proactively secure their data and systems to both avoid financial risks and strengthen customer trust.