Top Ways to Improve IT Security for Small Businesses

Cybersecurity is no longer just a concern for big corporations. Today’s cybercriminals know that small businesses often have fewer defenses, making them prime targets. In fact, reports continue to show that a significant percentage of cyberattacks target small and medium-sized businesses. The reasons are simple: smaller organizations often lack dedicated IT staff, may delay important updates, and frequently rely on consumer-grade security solutions.

For many owners, the idea of “improving IT security” sounds intimidating or expensive. The good news is that much of what truly strengthens a company’s security posture is accessible, affordable, and practical. By addressing a few core areas with consistency, small businesses can significantly reduce their risk of data breaches, downtime, and compliance headaches. Below are the top ways to improve IT security — explained in detail so you can turn them into actionable steps for your organization.

1. Strengthen Authentication with Strong Passwords and Multi-Factor Authentication

Passwords remain one of the most common ways attackers gain entry into systems. Weak, reused, or stolen passwords leave your business vulnerable to unauthorized access. Small businesses should adopt strong password policies that require complexity and uniqueness for every account. Rather than asking employees to remember dozens of long strings, provide them with a secure password manager. This allows them to generate unique, complex passwords without the burden of memorization — and helps eliminate the risky habit of reusing passwords across accounts.

Multi-factor authentication (MFA) takes this protection a step further. MFA requires a second form of verification, such as a code from an authenticator app or a physical security key, in addition to the password. Even if an attacker manages to steal a password, they will have a much harder time gaining access. MFA should be enforced on critical systems, including email, file storage, financial applications, and VPNs. App-based or token-based MFA is preferable to SMS whenever possible, since text messages can be intercepted or compromised through SIM-swapping attacks.

Many organizations are also starting to adopt passwordless authentication for even stronger protection and improved user experience. Passwordless login methods — such as biometrics (fingerprint or facial recognition), hardware security keys, or one-time push approvals — remove passwords entirely from the equation, eliminating the risks of phishing and credential reuse. For small businesses, passwordless authentication can simplify onboarding and offboarding while reducing password reset requests, making it both more secure and more convenient.

Finally, review account access on a regular schedule. Remove permissions for employees who have left and ensure that no one has more access than they need to do their job. This principle of “least privilege” limits the potential damage if an account is compromised.

2. Keep Software, Systems, and Devices Up to Date

Unpatched software is one of the leading causes of breaches. Cybercriminals actively scan the internet for systems running old versions with known vulnerabilities — and once they find one, they often exploit it within hours. For a small business, a single outdated router, printer, or laptop can become an entry point for ransomware or malware.

The easiest fix is to enable automatic updates wherever possible. Operating systems, browsers, office productivity software, and business applications should be configured to update without requiring manual intervention. If some updates must be done manually, schedule a recurring time to apply them so they don’t get delayed indefinitely.

Don’t forget about “silent” devices like routers, Wi-Fi access points, printers, and IoT devices. Many of these require periodic firmware updates to patch security issues. Maintain a simple inventory of devices and software so nothing gets overlooked. And if you are running systems that are no longer supported by the manufacturer — like an old Windows version or discontinued firewall — make plans to replace them before they become liabilities.

3. Secure Your Network and Wi-Fi

Your network is the foundation of your digital operations. If it is not secure, attackers may gain a foothold into everything else. The first step is to change any default passwords on routers, firewalls, and other network hardware. These defaults are widely known and published online, so leaving them unchanged is essentially leaving the front door unlocked.

Next, make sure your Wi-Fi network is protected with strong encryption — WPA3 if available, or WPA2 at minimum. Avoid outdated and insecure protocols like WEP. Use a long, complex passphrase and consider hiding the network name (SSID) to make it less visible to casual attackers.

If your business offers guest Wi-Fi, it should be completely separate from the network employees use for business operations. This can be accomplished by creating a separate VLAN or enabling a “guest network” feature on your router. Segmentation ensures that even if a guest device is infected, it cannot spread malware to company systems.

For remote employees or those who need to access resources from outside the office, provide a secure VPN or zero-trust remote access solution. This encrypts data in transit and prevents attackers from snooping on sensitive information over public networks.

4. Back Up Data Regularly — and Test Your Recovery Process

No matter how strong your security measures are, there is always a possibility of data loss — whether from a cyberattack, accidental deletion, or hardware failure. A solid backup strategy ensures your business can recover quickly and minimize downtime.

The most widely recommended approach is the 3-2-1 rule: keep three copies of your data, stored on two different media, with one copy offsite or offline. Many small businesses use a combination of local backups and secure cloud backups to achieve this. Automation is critical: set backups to run on a daily or weekly schedule so no one has to remember to trigger them manually.

Equally important is testing your backups. Far too many businesses assume their backups will work, only to find out during a crisis that the files were corrupted or incomplete. Conduct periodic restore tests to verify that you can recover data fully and quickly.

5. Train Employees to Recognize Threats

Technology can only go so far if the human element is ignored. Employees are often the first line of defense against phishing attacks, social engineering, and other common threats. Educating them is one of the most cost-effective ways to reduce risk.

Start with onboarding: new employees should receive basic security training, including how to create strong passwords, identify suspicious emails, and report potential incidents. Reinforce this knowledge through ongoing training sessions, ideally every quarter or twice a year.

Phishing simulations are especially effective. By sending harmless “test” phishing emails, you can see who clicks and provide real-time coaching to help them recognize the warning signs next time. Establish a simple process for reporting suspicious emails or activity, and make sure employees know that reporting is encouraged, not punished.

6. Limit Access with the Principle of Least Privilege

Every employee account, administrator credential, and shared login represents a potential attack vector. To minimize risk, adopt the principle of least privilege. This means giving each user the minimum level of access they need to perform their duties — nothing more.

Review user permissions regularly to ensure they still make sense. Employees who change roles or no longer need access to certain systems should have their rights updated or revoked. If possible, eliminate shared logins in favor of unique, auditable accounts. This makes it easier to trace activity and identify misuse if it occurs.

7. Use Trusted Vendors and Consider Managed Services

Small businesses rely heavily on third-party vendors — from cloud storage and payment processors to marketing tools and IT providers. Unfortunately, these vendors can introduce risk if their security practices are weak.

Vet your vendors carefully. Choose reputable providers with a strong track record of security and compliance. Ask whether they support MFA, how they handle data encryption, and whether they undergo regular security assessments. For added protection, include security expectations in your vendor contracts.

If your business lacks in-house security leadership, consider engaging a Virtual Chief Information Security Officer (vCISO). A vCISO provides executive-level security guidance on a flexible, scalable basis — helping you create policies, oversee vendor risk, align with compliance frameworks, and make informed security investments without the cost of a full-time CISO.

8. Protect Devices and Physical Access

Cybersecurity is not just digital — physical security matters, too. A stolen laptop can lead to a data breach just as easily as a phishing email.

Require all laptops, desktops, and mobile devices to use strong passwords or PINs. Enable full-disk encryption so that even if a device is stolen, its data cannot be accessed. Configure devices to auto-lock after a short period of inactivity and encourage employees to lock screens when leaving their desks.

Restrict physical access to networking equipment, servers, and other critical systems. This might mean installing locks, securing wiring closets, or using security cameras in sensitive areas.

9. Establish Written Policies and an Incident Response Plan

Policies and planning provide structure and consistency. Documented policies ensure employees know what is expected, while a response plan prepares your business for potential incidents.

Create written guidelines for password management, device usage, remote work, data classification, and acceptable use. Make sure these policies are easily accessible and reviewed periodically.

Your incident response plan should clearly outline what happens when a security event occurs. Define roles and responsibilities — who investigates, who communicates with leadership or customers, who handles technical containment and recovery. Conduct tabletop exercises so your team can practice responding to a simulated attack before a real one happens.

10. Monitor Systems and Detect Threats Early

Finally, security is not “set it and forget it.” Continuous monitoring allows you to spot issues early and respond before they escalate into major incidents.

Enable logging on key systems such as firewalls, servers, and email platforms. Review logs periodically for unusual activity, such as repeated failed login attempts or large data transfers. Consider implementing endpoint detection and response (EDR) tools to watch for malicious behavior on employee devices.

For many small businesses, outsourcing monitoring to a security provider is a practical solution. A managed detection and response (MDR) service can provide around-the-clock coverage that most small teams cannot maintain on their own.

Final Thoughts

Improving IT security doesn’t require massive budgets or complex tools — it requires consistency, awareness, and a focus on the fundamentals. By implementing strong authentication, keeping systems patched, backing up data, educating employees, and planning for incidents, small businesses can drastically reduce their exposure to cyber threats.

Security is an ongoing process, not a one-time project. Review your safeguards regularly, adjust as technology and threats evolve, and keep your team engaged in protecting the business. Doing so not only safeguards your data but also strengthens customer trust and keeps your business running smoothly, no matter what challenges come your way.

How Compass Can Help

Compass partners with small businesses to strengthen their overall security posture through a wide range of services, including cybersecurity risk assessments, penetration testing, policy and procedure development, compliance readiness support, and scalable Virtual CISO (vCISO) programs. Our team works closely with you to identify risks, implement industry best practices, and build a security program that grows with your business. Contact us today to discuss your unique security needs and take the first step toward a stronger, more resilient IT environment.