Startups’ Lax IP Cybersecurity Could Be Their Undoing | HackerNoon

Information travels quickly in today’s connected world. Unfortunately, that reality risks startups’ intellectual property (IP), potentially restricting competitiveness in a challenging market. Fortunately, a targeted cybersecurity protocol can safeguard those intangible creations.

A startup’s IP includes product designs and formulas. However, it also extends to content that may contain trade secrets, such as:

• Documents for investors.
• Goal-tracking spreadsheets.
• Employee training curriculums.
• Customer or client lists.
• Test outcomes.

How can you tighten cybersecurity to protect a startup’s IP and prospects?

Use Encryption

Data encryption is an information-scrambling method that stops unauthorized parties from accessing it. You can use this method for:

• Stored information.
• Data in transit.
• All information life cycle stages.

Since numerous encryption options exist, you should evaluate the type and amount of data stored and whether you’d like to encrypt whole devices or individual files. Some apps also have built-in encryption, so you can apply it to confidential material.

Classifying your data before selecting an encryption strategy is also helpful. Group it according to characteristics such as usage frequency, regulatory requirements and sensitivity.

Implement Secure Access Controls

Securing a startup’s IP also requires establishing effective access controls. A 2024 survey found people have 87 work-related passwords on average. Some employees compromise password-based security by reusing these credentials across sites or sharing them with co-workers. That may mean you should explore additional access controls.

One popular option is to align people’s permissions with their roles. Then, workers may interact with intellectual property but only for reasons matching their duties. Another approach is to control people’s access from a centralized dashboard. Then, you can easily adjust it if they leave the company or accept new positions.

Conduct Periodic Security Audits

Security audits reveal gaps that cybercriminals could exploit to steal sensitive information. Hiring skilled, external parties to do them increases visibility by highlighting issues you may not otherwise recognize.

Although conducting security audits at least once a year is a good practice, you should also schedule them when the startup goes through major changes, such as creating new departments or hiring several new employees. Auditors can also handle specialized needs, such as reviewing your current digital asset management program. Consider addressing current and future needs with a phased approach to prioritize gradual expansion and scalability.

Train Employees How to Handle Data

The startup’s employees need ongoing guidance on maintaining cybersecurity while working with sensitive material. Creating policies and walking workers through potential scenarios reduces the chances they’ll make mistakes that cause breaches. Regular training is beneficial since workers have progressively more tools in their workflows.

A 2024 study showed that 38% of employees put sensitive information into generative AI tools without employers’ knowledge. Those actions could compromise that content since some products use session data for future algorithm training. However, clear, frequently updated policies reinforce what employees can and cannot do when working with data.

Keep Security Software Updated

Security software can detect, classify and alert you to potential intrusion or IP theft attempts. However, it’s significantly less effective if outdated. Vendors regularly release software patches, updated threat libraries and new features, keeping their products effective against the changing cybersecurity landscape.

Review the startup’s security software settings to see when the last update occurred. If the product offers an automatic update feature, consider activating it. That capability may also allow scheduling new releases onto the system outside business hours.

Engage in Incident Response Planning

Even as cyberattacks become more extensive and damaging, those orchestrating them often follow a seven-step process to achieve their aims. Putting yourself in the mind of a potential hacker is an excellent breach mitigation strategy.

Another important part of the IP cybersecurity protocol concerns the organization’s planned response to a known or suspected incident. Assign responsibilities and break down the steps to take in order. A clearly defined and documented plan increases the chances of people taking the right actions under stress. Then, everyone involved can work together to lessen the adverse impacts and learn what happened.

Maintain an Updated IP Cybersecurity Protocol

Besides following these tips, regularly review the cybersecurity protocol to keep it current for the kind of intellectual property the startup has. That’s the best way to ensure its ongoing effectiveness as the company grows.