Cyber Security for Startups: Understanding Data Breach Risks

Many startups operate under the assumption that cyber attacks only happen to other companies – bigger, more visible ones, or those with something particularly “worth stealing.” The truth, however, is far less reassuring. The majority of data breaches aren’t the result of highly sophisticated, targeted attacks. Instead, they are opportunistic, often automated, and alarmingly effective at exploiting even the smallest vulnerabilities.

This was the core message of a recent webinar hosted by the Swiss Startup Association, featuring Patricia Egger, Head of Security at Proton; Christian Schluchter, CTO of Meteomatics AG; and Henning Wiedlich, Software Engineer at Aequitec. Together, they explored what really drives most data breaches and shared practical strategies founders can implement, even when time and budget are tight.

The biggest misconception about cyber attacks

Many founders assume their companies are too small or unimportant to be targeted. Some think, “Who would care about our data?” The answer is simple: attackers aren’t always after the data – they’re after money.

Ransomware doesn’t discriminate. If shutting down your systems causes enough pain, someone will eventually pay to restore them. Almost any online business can become a target, whether the attack is personal or strategic.

Some organizations face both broad and highly targeted attacks because of the nature of their users. The lesson is the same: size and visibility offer no real protection, and assumptions won’t stop an attack.

Human error is still the weakest link

Across all three companies, one pattern became clear: most security incidents involve people. Phishing, misconfigurations, weak passwords, rushed decisions – no one is immune. Even experienced engineers can fall prey under pressure. During the session, one story caught everyone’s attention: a seasoned security professional clicked on a phishing email simply because they were busy and wanted to “get it done.” Awareness helps, but it doesn’t make anyone invincible.

The rise of AI is making these challenges even more acute. Phishing emails have become more convincing, voice cloning allows attackers to impersonate CEOs or colleagues, and caller ID spoofing can make fraudulent requests feel entirely legitimate. In today’s environment, trusting what you see or hear is no longer safe by default.

Security is not just a tech problem

One recurring theme was that security cannot live solely within the engineering team. Even startups without a dedicated security function need to treat it as a company-wide responsibility.

Henning emphasized that education matters just as much as tooling. You can’t patch a human, but you can train one. Small, focused actions can yield big results, especially when you concentrate on the 20% of effort that prevents 80% of incidents.

This means providing basic training, sharing real examples of attacks, and helping employees understand what attackers are actually trying to do. When people see that attacks happen not just in theory, but inside their own company, their behavior changes, and security becomes part of the culture rather than just a checklist.

Back to basics, especially with AI

Even with all the discussion around AI-driven threats, the speakers kept returning to the fundamentals: access control and knowing exactly who has access to what.

Patricia highlighted a common challenge for startups: oversharing access because it feels faster. In small teams, everyone wears many hats, and it seems easier to let people do a bit of everything. But as the company grows, that mindset becomes increasingly risky. AI tools can make this risk even greater. Automations often request broad access, and teams may not fully understand the data they’re exposing.

New technology doesn’t replace the basics; it simply amplifies the consequences when those basics are neglected.

Awareness beats perfection

None of the speakers claimed that perfect security is possible, because it isn’t. What truly matters is fostering a culture where mistakes are expected, and systems are designed with that assumption in mind.

The mindset should be that both users and employees will eventually make mistakes. Monitoring, detection, and rapid response are built around that reality. When someone is flagged for a risky action, follow-up reinforces awareness without creating fear.

A similar approach is using constant, lightweight reminders to keep security top of mind. Posters, small messages, and visual cues may not stop attacks on their own, but together they help create a culture where people pause and think before acting.

Certifications are not a shortcut

Security standards like ISO 27001 came up in the discussion. They are strong in theory. Many implementations fall short. To be clear: certifications are frameworks, not solutions. If treated as checkboxes, they add little value. Used well, they make teams think about risk in a structured way.

For early-stage startups with limited resources, risk management gives the highest return. Decide what truly matters. Know what you are protecting. Understand which risks you can accept for now. If everything is a priority, nothing is.

Where startup founders should start

When asked what they would do if they started a company from scratch, all three speakers gave similar advice: start with clarity.

Define what matters most to your business. Identify your most critical data and systems. Build security into processes from day one instead of bolting it on later. Trust experts for non core infrastructure like email rather than building everything yourself. And always have a plan for what happens when something goes wrong.

For non technical founders, external reviews and penetration tests can be a strong starting point. They will not fix everything for you, but they help you see risks you did not know existed.

Final thought

The number one cause of data breaches is not sophisticated hacking. It is people, under pressure, using imperfect systems.

Security does not start with tools or certifications. It starts with awareness, clear priorities, and a culture that assumes mistakes will happen and plans accordingly. For startups, that mindset can make the difference between a minor incident and an existential crisis. 

Catch the full webinar replay in the Swiss Startup Association Education Library, free for members. Not a member yet? Join the community and get access to practical sessions that help you protect your business before something goes wrong.