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Moving your business online is an exciting stage of your journey. After all, it’s much easier to manage operations and store crucial information when everything is stored in one secure, accessible location. And, let’s face it, you wouldn’t want your business to miss out on the digital revolution in 2025.
However, moving online also carries some serious risks.
If your business stores data online (including client information), there’s always a risk that this data could be stolen or manipulated. Data breaches can cost SMEs dearly – sometimes even more than they can afford. This is where a robust Cyber Security Plan comes in handy.
What Is Cyber Security?
Cyber security is essentially your business’s way of protecting digital data and information from unauthorised access, theft, and hacking. In today’s interconnected world, establishing strong cyber defences is as critical as locking your office door at night.
Not having a suitable cyber security system in place is like leaving your office unlocked – you wouldn’t want the valuable stuff inside to be stolen. Making cyber security a habitual practice is a smart, proactive step.
Consider this: the investment in protecting your business from a data breach is likely to be significantly lower than the cost and disruption of recovering from one. Handling sensitive information such as your clients’ payment details or, in some cases, medical records, comes with serious risks that are best managed with the right security measures.
What Kind Of Online Threats Are We Talking About?
Cyber security threats in 2025 come in many forms, and their ever-evolving nature makes them particularly dangerous and challenging to defeat.
A cyber threat can be as subtle as an email impersonating someone you know and asking you to confirm sensitive information. This practice, known as spoofing, is just one example of the myriad cyber threats that exist today.
- Scam Emails (‘phishing’)
- Malware: Including viruses, spyware, and worms that infect your systems
- Ransomware: A scenario where hackers demand payment in exchange for restoring access to your compromised data – and even if you pay, there’s no guarantee your data will be returned
- Denial of Service Attacks: Cyber criminals overload your systems with excessive requests, causing them to crash
Fortunately, there are many ways to protect your business and manage your cyber security effectively.
How Can I Protect My Data?
Many SMEs tend to gloss over developing a comprehensive cyber security plan and simply leave it to IT professionals. However, cyber security is everyone’s responsibility in the workplace – from the CEO to the newest team member.
Protecting your business against online threats requires collective effort. Even something as simple as regularly updating your passwords can make a significant difference.
So, how do you ensure everyone in your team is on board with these practices?
Update Your Systems Regularly
While most businesses back up their data and update their systems, the increased sophistication of cyber threats in 2025 means it’s wise to do so even more frequently. Whether patches, security updates, or routine backups – staying current reduces vulnerabilities.
This includes regularly changing passwords (for both employees and systems) and enabling two-factor authentication whenever possible.
Many businesses now rely on cloud-based services for their convenience and robust encryption. However, using the cloud also means you need a clear strategy to organise and monitor where your data resides.
Monitor Who Has Access To Your Data
Within any business, certain employees require access to specific data to perform their roles effectively. It’s essential to maintain strict control over who can access what, to prevent sensitive information from falling into the wrong hands.
Having a comprehensive Cyber Security Policy in place clarifies which employees have access to data and under what conditions – a step we discuss further below. For additional insights into safeguarding your online operations, you might also check out our Online Business Privacy guide.
If you employ independent contractors, it’s important to monitor how they use your data. Unlike regular employees, contractors typically have less oversight, so having a well-crafted Contractor Agreement is a good practice. Such agreements usually cover:
- Scope of work
- Price and payment method
- Intellectual property rights
- Confidentiality obligations
By including specific provisions that limit the contractor’s access or use of data, you reduce the risk of sensitive information being misused or leaked.
If you’ve engaged overseas contractors, note that you may need to specify which laws govern the agreement, as local laws around data use and privacy can differ from Australian standards.
What If My Employees Are Working From Home?
Since remote work became widespread in the early 2020s, having a solid Work From Home Policy is now essential. When employees use personal devices or share living spaces, there is an increased risk of unauthorised access to sensitive information.
A Work From Home Policy should lay out clear rules on how employees can access data. For instance, you may require the use of company-approved software or a secure VPN when working remotely. This approach helps mitigate liability risks if data is mishandled. We’ve also shared tips on managing remote workers here.
If your staff work principally on-site, consider updating their Employment Contracts to reflect data access limitations, or ensure your Workplace Policy clearly defines their obligations regarding sensitive information.
Train Your Employees About Cyber Security
It’s one thing to have robust policies in place – it’s quite another for employees to understand and follow them. Cyber security training is essential to empower your team to make smart, safe decisions regarding data handling.
Once your employees have received basic training, they’re more likely to practice cautious behaviour when accessing and sharing sensitive information. Regular, updated training sessions are particularly important in 2025 as cyber threats continue to evolve.
Remember, the written rules in your policies are only as effective as the knowledge of the people enforcing them. Continuous learning about cyber security fundamentals can vastly improve your overall defence strategy.
Getting Cyber Security Insurance
Like many risks, those associated with cyber security can be partially mitigated with the right insurance. Cyber Security Insurance can cover expenses incurred during recovery from a data breach, including legal fees, notification costs, and reputational damage control.
There are multiple ways to protect your sensitive information in 2025, so it’s a wise move to explore all your cyber security options – you can also check out our guide on protecting business information.
What Other Agreements Might I Need?
Even if you’ve taken every precaution to ward off data breaches, the possibility of one still exists. That’s why having a well-structured Data Breach Response Plan is essential.
This plan should detail how you’ll notify affected parties if a breach occurs, outline the roles and responsibilities of your team in containing and addressing the incident, and establish clear communication protocols. Regular reviews and updates of the plan are recommended to adapt to emerging threats.
Proactive measures like these not only help you respond swiftly in a crisis but also minimise potential reputational damage.
Non-Disclosure Clause
You can incorporate a non-disclosure clause directly into your Employment Agreements or draft a standalone contract – an NDA. Either approach ensures that employees are legally bound to keep confidential information private.
This is one of the fundamental steps to safeguard your business information and can often be the first line of defence against a data breach.
Similarly, including a Non-Compete Clause in your employment contracts can further protect your sensitive data by preventing employees from working with your competitors immediately after leaving your business.
We understand that putting together a robust cyber security plan can feel overwhelming. The Australian Cyber Security Centre offers a comprehensive Small Business Cyber Security Guide that outlines the key points to consider, so you can take informed steps forward.
What Is A Notifiable Data Breach?
If your business falls under the Privacy Act 1988, any significant data breach must be reported to both the affected parties and the OAIC (Office of the Australian Information Commissioner). Such incidents are classified as Notifiable Data Breaches.
A Notifiable Data Breach occurs when:
- There has been unauthorised access to, or loss of, your data
- The breach is likely to result in serious harm
- Your business is unable to prevent that harm effectively
Am I Covered By The Privacy Act?
Generally, the Privacy Act applies to businesses with an annual turnover of more than $3 million. It also covers certain industries regardless of turnover, such as health service providers dealing with sensitive data. In 2025, if you handle personal information in any significant capacity, it’s crucial to ensure compliance with the Act’s requirements.
If you’re uncertain whether your business is subject to the Privacy Act, you can verify the criteria on the OAIC website.
Need Help?
Data breaches and cyber security threats can affect any business – and as more companies operate online in 2025, the risks have never been higher.
This is why having a solid, up-to-date cyber security plan is crucial. Don’t worry if it feels overwhelming – our team of professional lawyers is here to help you establish the right policies and agreements tailored to your business needs.
You can reach out to us at team@sprintlaw.com.au or call 1800 730 617 for an obligation-free chat.
As we navigate through 2025, keep in mind that cyber threats are ever-evolving. Regularly reviewing your security protocols and scheduling ongoing employee training sessions can be the difference between maintaining a secure environment and facing a costly breach. For more insights on safeguarding your business, be sure to explore our guides on Contracts and Intellectual Property.
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