Cybersecurity and Data Protection for Australian Small Businesses

Cybersecurity and data protection have become essential responsibilities for every Australian small business. As digital systems, cloud platforms and online payments become the standard, cybercriminals have increased their focus on SMEs — not because they hold less valuable data, but because they often have fewer protections in place.

Scams, data breaches, email compromise and identity theft continue to rise each year. Small businesses must take proactive steps to safeguard their information, their people and their customers. This guide outlines the key cyber threats facing SMEs and provides practical strategies to strengthen data protection and scam awareness.

1. Why Data Protection Matters More Than Ever

Businesses now store almost everything digitally, including customer records, financial data, employee information, supplier details, contracts, tax documents and intellectual property. This makes SMEs highly attractive targets for cybercriminals.

The consequences of a data breach can include:

• Financial loss
• Reputational damage
• Disruption to business operations
• Legal and privacy obligations
• Loss of customer trust

Australian businesses are also subject to the Privacy Act and the Notifiable Data Breaches Scheme, which require organisations to take reasonable steps to protect personal and financial information.

2. Common Cyber Threats Targeting SMEs

Cybercriminals increasingly use sophisticated methods designed to appear legitimate, making scams harder to detect.

Business Email Compromise (BEC)

Criminals impersonate staff members, suppliers or advisors to request urgent payments or changes to bank account details.

Phishing and SMS Scams

Emails or text messages that mimic trusted organisations — including banks, software providers and government agencies — prompting recipients to click malicious links or disclose sensitive information.

Scammers frequently impersonate the Australian Taxation Office (ATO), particularly around tax time. The ATO will never ask for your TFN, passwords or bank details via email, SMS or unsolicited phone calls. If you receive a message requesting this information, do not respond or click any links. Instead, contact our office directly so we can verify the request and guide you safely.

Invoice Fraud

Legitimate invoices are intercepted or altered so payments are redirected to fraudulent bank accounts.

Malware and Ransomware

Malicious software locks or corrupts systems and files, with criminals demanding payment to restore access.

Identity Theft

Stolen personal or business credentials are used to commit fraud or access financial systems.

These threats are particularly dangerous for accounting and finance teams due to their access to sensitive data and payment systems.

3. Strengthening Accounting Data Security

Accounting platforms hold some of the most sensitive financial information within a business, making them a critical security priority.

Essential protections include:

• Multi-Factor Authentication (MFA): Enable two-step verification on systems such as Xero, MYOB and online banking
• Role-Based Access: Staff should only have access to the information required for their role
• Removing Old Logins: Deactivate access for former staff or unused accounts
• Software Updates: Keep all systems up to date to patch security vulnerabilities
• Secure Payment Processes: Use dual approvals and phone verification for bank detail changes
• Regular Backups: Maintain encrypted, off-site or cloud-based backups and test restoration processes

Strong data security significantly reduces the likelihood of scams being successful.

4. Building Scam Awareness Across the Team

Technology plays a vital role in cybersecurity, but people remain both the strongest and weakest link. Many scams rely on urgency, authority or human error.

Staff should be trained to recognise:

• Unexpected changes to bank details
• Requests to bypass normal approval processes
• Emails with unusual tone, spelling or formatting
• Messages demanding urgent payment
• Suspicious attachments or links

Encourage staff to:

• Verify payment instructions by phone
• Report suspicious emails immediately
• Slow down when requests feel urgent or unusual
• Use strong, unique passwords and update them regularly

Ongoing awareness training is one of the most effective forms of cybercrime prevention.

5. Secure Document Handling and Information Sharing

Financial and personal information is often shared between businesses, advisors and external parties. Managing this data securely protects everyone involved.

Best practices include:

• Using encrypted client portals for document sharing
• Password-protecting sensitive files
• Avoiding the transmission of TFNs or bank details via email
• Securely storing physical documents and limiting access

These habits should be embedded into everyday workflows.

6. How to Respond to a Scam or Data Breach

Acting quickly can significantly reduce damage and exposure.

Immediate steps include:

1. Contact your bank to block or trace funds
2. Change passwords and enable MFA
3. Disconnect affected devices from the network
4. Notify your accountant or IT provider
5. Report the incident to the Australian Cyber Security Centre (ACSC)
6. Review what occurred to prevent future incidents

Having a clear response plan improves confidence and resilience.

7. How Hall Browns Protects Your Information

At Hall Browns, protecting client data is a top priority. We have robust systems, processes and training in place to safeguard your information at every stage.

Our approach includes:

• Redacting TFNs from ATO correspondence before it is sent to clients
• Secure client portals for uploading and sharing documents safely
• Annual cyber security training for all staff
• Two-Factor Authentication (2FA) across all critical systems and programs
• An external IT consultant who conducts regular reviews to ensure our software, systems and protections remain up to date

These measures allow us to maintain the highest standards of confidentiality, security and trust.

8. Developing a Long-Term Cyber Safety Strategy

Cybersecurity is not a one-off task — it requires ongoing commitment and vigilance.

A strong long-term strategy includes:

• Annual security reviews
• Regular cyber awareness training
• Documented payment approval workflows
• Routine software and system updates
• Supplier verification procedures
• Clear communication protocols

By embedding security into everyday business culture, SMEs can better protect their operations, reputation and future growth.