Why a domain name security strategy is essential for start-up companies

The UK startup market has experienced rapid and remarkable growth over the past decade, driven by the evolution in consumer behaviour, accelerating change in technological advancements and increased investment from institutional capital.

Emerging technologies such as blockchain, artificial intelligence (AI), machine learning and Web 3.0 are now shaping the solutions that are being developed by newly formed companies and those rapidly growing market share. These new technologies have enabled start-up companies to offer innovative solution that demystify and simplify complex tasks and difficult to understand topics. With trust and online security, key considerations for any growth, technology has enhanced online safety, mitigating some of the key threats and improved user experience.

The shift towards the digitalisation of  everyday tasks has been accelerated by consumer demand for convenience, low-cost and innovation. Today’s customers want the familiarity of traditional products and services, packaged in an innovative and easy to access way, something that start-ups such as brands like Revolut and Monzo in the Financial Services industry, or Tailwind in the content creation space have capitalised on so well. These companies have seen significant growth in user numbers and transaction volumes, whilst maintaining a secure and stable digital platform that users trust and share their positive feedback about, one of the key aspects of their remarkable upward trajectory.

However, the risk landscape to online platforms continues to evolve, meaning there is a need for constant attention to emerging risks. Start-ups and companies in their initial investment cycles and growth stages are prime targets for cyber-attacks, as they often do not yet have the resources in place dedicated to managing the necessary defensive infrastructures. Protecting customer and company data is crucial. Any loss of privacy or breaches in data security can lead to legal issues, loss of customer trust and potential regulatory penalties. For any investors in these businesses, it may also cause significant financial pain too.

Due to the nature of the provision of third-party services which form the digital ecosystem many new value propositions are built on, it is essential that any potential vulnerabilities are identified and mitigated against to prevent supply chain attacks, diversion of customer traffic or exploits in critical technology.

One of the key growth factors for successful start-ups has been the ease of availability and use through apps on a smart device. Gone are the days when successful companies needed a website to compete – today many of  fastest growing start-up companies will develop slick-looking, feature-rich apps that allow customers to interact with organisations from the palm of their hand.

Whilst many businesses will be built on an app-interface, the core infrastructure is likely to sit on a traditional website accessed through a domain name. A key vulnerability for any digitally focused business is domain name security, or the lack of it. Unfortunately, all domain names are not created equal. Some organisations will shop around for the cheapest domain registrar to buy their domain from, satisfied they may have saved a few pounds in the process. However, many organisations will neglect to consider vital value-add extras that provide protection against the cyber-attacks that continue to blight our digital world. For any ambitious business with strong growth intentions, using a corporate domain name registrar, who can provide the key aspects of domain name security, is critical. This includes:

• Registrar and Registry locks which prevent accidental or malicious changes to a domain name that could result in the significant and immediate loss of revenue and reputation.
• SSL or Encryption certificates that ensure that all customers and potential clients sensitive data is kept secure when be routed across the internet.
• Enterprise DNS services that can provide resilience against unexpected spikes in web traffic whether caused by genuine demand or nefarious activities such as targeted Distributed Denial of Service (DDoS) attacks.
• Domain Name Monitoring which tracks any domain name registrations that could be infringing against a company’s valuable intellectual property, or that may be used for fraudulent activity such as phishing attacks.

It is unfortunately a fact that most successful businesses in their initial growth phases will start to see brand infringement and abuse issues. Whilst more mature businesses have the intellectual property portfolio in place to help protect their brand online, newer entities often do not have the protection mechanisms in place, which is why a domain name security strategy is key in the initial growth phases, both for the brands themselves but also their investors, who want to ensure they see a return on their investment not being hampered by nefarious activity.

In simple terms, implementing some low-cost, high impact domain security measures are one of the most effective cyber defences that a start-up business can implement. For organisations seeking further funding, demonstrating a strong domain name security posture can be a key differentiator. It shows potential investors that the company takes a proactive approach to protecting its digital assets and understands the importance of cybersecurity, reputation, and safeguarding customer data.

A domain name security strategy is not just an IT matter but a critical business imperative. It protects sensitive data, maintains brand integrity and reputation, ensures regulatory compliance, and supports future growth across all markets. As the digital threat landscape continues to evolve, startups and established businesses that prioritise domain security will be better positioned to thrive in all competitive markets.

At Com Laude, we work with start-ups and established global brands on ensuring that they stay present and protected in the rapidly changing digital landscape, creating domain name strategies that encompass both proactive registration projects and defensive domain security implementations. We ensure our clients, at whatever stage they are at in their growth stay one step ahead of the competition and the cyber threats.