Technology-focused investment firms are at elevated risk for cyber breaches of any kind, even relative to more traditional or diversified funds. As cybercriminals continue to advance their methods for stealing from and defrauding businesses, it is important to consider one’s cybersecurity measures and how to fight back against advancing crime–particularly for the partners and employees of profitable venture capital firms.
Top Cybersecurity Best Practices for Venture Capital Firms
The events of the COVID-19 pandemic have caused numerous issues for businesses within the online space. Not the least of which is the active targeting of remote workers. As remote and hybrid work styles continue to play a major role in business, firms everywhere should consider cybersecurity best practices to keep employees and assets safe while elevating risk posture.
There have been a growing number of cybercriminals targeting remote workers through means of phishing scams and other fraudulent activities, often seeking to gain access to unsecured or less secure networks, as compared with the typically strict security of corporate networks. Once inside, these bad actors can lay in wait for months for a moment to strike: a key executive traveling, a new fund launch, a noteworthy event for a portfolio company. As governmental guidelines continue to change and clarify these new online risks, what is becoming increasingly apparent is that venture capital firms everywhere need to shore up their cybersecurity protocols.
How to defend against advanced cybercrime
A great first step when it comes to defending from advanced cybercrime is employee education at every level. This means not only a focus on IT-based work, but for all employees to be educated on and understand the risks and signs associated with scamming and other cybercrimes. Factors to consider include increased use of ransomware by cybercriminals and how to spot phishing emails early on.
It is also important to have a recovery plan in place so that business can continue as usual in the event of cyber breach. Consulting with cybersecurity professionals as well as utilizing software that allows for real-time monitoring of potential breaches can help any firm defend itself from cybercrime.
The online space will only continue to grow for those firms utilizing remote and hybrid work. Employees on home (and other non-corporate) networks will be exposed to added risk. To keep employees, clients, and firm networks safe, the right cybersecurity plan in conjunction with the advice of cybersecurity professionals can allow for venture capital firms to prosper in an era of unprecedented cyber-risk.