elf-storage companies are rapidly adopting digital systems to improve their operations. The implementation of technology in self-storage facilities has led to numerous conveniences for both facility operators and tenants.

The modernization involves streamlining tasks such as renting procedures, accepting payments through online portals, implementing mobile access control, and leveraging video surveillance. By transitioning to online services, storage providers can not only enhance the customer experience but also systemize operations and enhance physical security measures. Leading vendors in this arena include SiteLink, Yardi, and storEDGE, all of which offer comprehensive digital management tools.

Through these vendors’ services, self-storage companies can create a seamless digital experience for their clients, with the intent of keeping sensitive data protected from potential cybersecurity threats. However, with this digitalization comes vulnerabilities and an increased risk of cyberattacks. From individual operators to the largest companies, the self-storage industry is realizing that it is not immune to the threats posed by cybercriminals.

In the event of a cyberattack on a storage unit digital system, clients’ data may be compromised with substantial implications on their finances and that of the facility management. Cyber attackers may extract pertinent details like personal names or addresses and confidential credit card particulars, leaving clients defrauded. In addition, the self-storage company’s critical financial, maintenance, and other operational information is at risk of being compromised or lost altogether.

Cybercriminals are continually adapting and searching for ways to exploit systems. To keep up with the digital age, self-storage companies need to be aware of the perils that come with technology advancements. Companies must mitigate the risks associated with cybercrime, such as data breaches, ransomware attacks, and phishing scams, which have catastrophic effects on businesses.

Self-storage businesses rely primarily on third-party technology solutions provided by various vendors. As a result, vendor selection is a key component to protecting your company and facilities. Effective vendor risk management starts with understanding the security of the tools and technologies you are investing in to enhance business operations.

While some might believe that cybersecurity is the responsibility of their technology service providers, the effects of a breach will trickle down to financial and reputational harm for the self-storage business itself. Downtime, distraught customers, poor reviews, and even lawsuits can be detrimental to self-storage companies of all sizes. A business cannot fully transfer its cyber risk, so leaders must evaluate their technology vendors carefully, through the lens of cybersecurity.

One way to determine whether a software or technology service provider is proactive in their cybersecurity efforts is to look for an independent analysis of their security program. The SOC 2 Audit is a common example of an independent review of a technology provider’s cybersecurity controls. The SOC 2 Audit report will contain an evaluation of the vendor’s cyber risk management program, pointing out areas of deficiency.

In addition to the SOC 2 audit, ask potential vendors about other independent security assessments, such as penetration tests. A penetration test is a technical analysis performed by cybersecurity professionals attempting to “hack” a company’s technologies using the same tools and techniques that cybercriminals are known to leverage. It is imperative that self-storage technology providers perform regular penetration tests and independent cyber risk assessments to maintain an appropriate level of security for their users. If a vendor is not performing these activities on an annual or more frequent basis, look for other providers offering solutions that fit your needs.

Larger self-storage companies may have their own technology professionals in-house who can build a formal vendor risk management program and vet potential vendors with detailed security questionnaires.

Regardless of the size of your organization, take the time to review vendor materials and service level agreements (SLAs) to confirm that they include cybersecurity considerations. A vendor’s SLA should clearly state their data protection obligations, response times, and compensation for downtime resulting from security incidents.

Self-storage providers cannot overlook cybersecurity when keeping customer data safe from intruders. Vendors who value security are excellent partners to work with and provide tremendous benefits for self-storage operators.

While vendor risk management is critical, it is one of many considerations and does not secure a company on its own. Self-storage companies should also take their own precautions by initiating more holistic cybersecurity control measures. Whether you operate 50 units or 50,000 units, an effective cyber risk management program should be built into daily operations. The size and sophistication of your organization will help determine how this is developed.

Small self-storage operators face many of the same cybersecurity risks as larger operators but may have fewer resources to allocate to cybersecurity. Although there are many controls to mitigate risk, it is important to start with the basics. Here are the top five activities small self-storage operators should do to help protect their businesses from cyberattacks:

• Keep software up to date. Keeping software up to date, including a name-brand antivirus solution, will prevent cybercriminals from exploiting known vulnerabilities.
• Conduct regular cybersecurity assessments. Cybersecurity encompasses people, processes, and technologies. Regular assessments help identify vulnerabilities related to all three, allowing operators to address them before they can be exploited by cybercriminals. Even the smallest operators can perform simple self-assessments available online at no cost.
• Implement access controls. Access controls such as strong passwords, two-factor authentication, and role-based access can help prevent unauthorized access to sensitive information and systems.
• Implement an employee awareness training program. Cybersecurity is everyone’s responsibility, and the human element is the weakest link in the security chain. A consistent awareness program will help employees identify and avoid common cyber threats such as phishing emails and social engineering techniques.
• Develop an incident response plan. In the event of a cyberattack, having an incident response plan in place will help operators respond quickly and effectively to mitigate the damage and minimize downtime.

By starting with these steps, small self-storage operators can take a proactive approach to cybersecurity and reduce their risk of falling victim to cyberattacks. It’s important to remember that cybersecurity is an ongoing process. Operators should regularly review and update their security measures to keep up with the evolving threat landscape.

Larger self-storage companies have more resources, infrastructure, and complexity. They tend to seek a wider range of protection and more formal security measures. It is important to understand that effective cybersecurity is never a “make it up as you go” approach. Fortunately, there are highly regarded technology organizations that have developed effective methods and made those methods freely available to the public.

When confronted with cyber risk challenges in today’s business world, organizations rely heavily on cybersecurity frameworks such as the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF) or the Center for Internet Security Controls (CIS Controls). These well-recognized models are essentially lists of activities and controls that an organization should follow to be considered proactive in its cyber risk management.

Adopting a framework such as NIST CSF or CIS Controls sets the foundation for an effective risk management program, ensuring appropriate protection is developed over time to make the organization a hard target for cybercriminals.

Some of the measures in these frameworks include regular security assessments, vulnerability management, access controls, policy documentation, staff awareness training, and incident response and disaster recovery planning. An assessment against a common cybersecurity framework will provide a roadmap toward better security across all areas of an organization.

The digital modernization of the self-storage industry provides many benefits, but it also presents new cybersecurity risks. Self-storage companies must take proactive measures to mitigate these risks, including seeking vendors that adhere to strict cybersecurity standards, regularly conduct security assessments and penetration testing, and have clear policies and procedures for handling security incidents. By taking these steps, self-storage companies can enjoy the benefits of digitization while safeguarding their data and protecting their tenants.

The vast majority of breaches occur due to a common single failure. Most breaches are the result of company leaders failing to commit to building a proactive cybersecurity program. Without leadership commitment and follow-through, an organization exposes itself to an ever-evolving range of technology risks.

Remember, security is not about being perfect. It is about continuous improvement. Focus on continuously reducing cybers risks related to people, processes, and technologies across the entire organization. By making the commitment to minimize your organization’s cyber risk, you are taking the first step to a secure and compliant future.