For startups, investing in security can feel like a luxury reserved for big companies. Many small companies are powered by stretched teams that lack the necessary expertise to establish effective security programs. Hiring full-time staff is costly and time-consuming, and traditional security vendors are often too expensive and rigid to keep pace with a startup’s needs.
It’s easy to deprioritize security because it seems like a “big company problem,” but cybercriminals operate under a different model. They are increasingly targeting smaller companies, knowing that most startups operate with minimal cybersecurity investments, making them easy prey.
The data tells this story clearly: 60% of small businesses have reported a data breach, and 75% of ransomware attacks target startups with less than $50 million in revenue. Recovering from these attacks is expensive; the average cost of a data breach is $4.4 million, and that for a ransomware attack is $1.85 million. There’s also long-term reputational and brand damage involved—this can be fatal to an organization. A recent survey revealed that 10% of breached startups pivoted their business due to reputational damage.
Many startups turn to traditional tools like automated scanners to address some of these challenges. However, these tools aren’t designed to detect vulnerabilities in a fast-paced environment.
Startups are constantly iterating, resulting in old domains, test sites, and cloud buckets that aren’t actively managed. Automated tools miss vulnerabilities in these assets, resulting in surprise breaches.
With no formalized information security workflows, teams rely on shared logins or skip multifactor authentication. These gaps are often overlooked by traditional tools. Meanwhile, attackers can use these vulnerabilities to break in and commit fraud.
CMS-based websites often run on outdated plugins and unpatched software, which attackers can exploit to steal data or take down sites. Traditional scanners don’t flag these in real time.
To improve productivity, startup employees may create new accounts for tools without proper oversight. As a result, sensitive data lives in places that can’t be secured or monitored using traditional tools.
This is where crowdsourced security can be a game changer. It combines a global network of security researchers, referred to as “hackers,” with a SaaS platform to quickly deliver the security outcomes stakeholders demand without overwhelming your team.
Download the Ultimate Guide to Crowdsourced Security for Tech Startups to learn more about the benefits of offensive testing, how startups use Bugcrowd, and tips to find the right crowdsourced security platform.