Greg, hacking happens more than you know. When the big box stores or a bank get hacked, "sometimes" it hits the news. But how many times do you see any news on small businesses getting hacked? It's a big source of information loss. Unfortunately this causes a mindset among other companies, it's not on the news, not hearing about it, it can't be happening.
I see many new clients every year and it never ceases to amaze me how many have viral infections and nobody realized. For the average small business, a virus is pretty much a gauranteed hack. Heck, just recently one client called me saying his 250 gig server was full but he only had 5 gigs of viable data. His server had a virus and was happily running a warez ftp site from the root of C: that was wide open to the world, over 200 gigs of movies and games, all company data was fully accessible.
Some people may not agree, but employees (and yes, many bosses) are the weakest link in the security chain. If you're going to get hacked, it's an employee that's going to do it tho it may be inadvertantly. Oh the stories that could be posted here.
Get a decent firewall, the off the shelf d-link and linksys don't cut it. You can get a cisco ASA5500 for less than a grand, money well spent considering a hack can cost you alot more. Install it and have someone verify it. A badly configured cisco is worse than an out of the box d-link or linksys. I won't use software firewalls anymore, they cause more problems than they fix.
Don't rely solely on antivirus software, there's no such thing as perfect.
audit the information on your network - this is a big one, what information do you carry on people. Do you have names, addresses, credit card info and such? That's the goldmine for hackers today, information theft for identity theft.
educate your users - Many users have the mindset that if it's there, they'll use it. NO!!! The network is the companies investment and they must protect it. When you explain the dangers of open surfing, the majority understand it and stop but there's always the odd one who presses on. The ones that keep pressing the issue are generally the ones who lose their job.
Along with education comes the acceptable use policy, there are many samples online that you can rewrite for your own use. This is the basic must for any business and it's free. Have employees read it (or explain it to them), have them sign it and date it. I've had businesses call me in to have a group talk with all employees, they bring in lunch and we have a laugh. Don't do it as a fire and brimstone, make it fun and foot the questions. You'll not only help your company in the matter, you'll help users at home at the same time.
Monitoring is another big one. I don't know where you are located but here, a business must tell users their activities are being monitored, this comes with the acceptable use policy. There are many monitoring products on the market, research them.
I won't allow the all in one password reminders on any network. I don't want to see passwords written down anywhere, it has to be remembered. If users can't remember passwords, tell them to pick a word they won't forget, capitalize the first letter and change any i to 1, e to 3, s to $, stuff like that. Makes a secure password they won't forget.
You mention kids on the network. If they are old enough to surf and have email? Generally no. As many parents know, when you have kids, you have viruses and malware. Your employees can be held liable for damage done to your network, kids can't be. Play it safe, if it's an ongoing thing, at least buy a copy of netnanny and allow a few sites for them to surf. Just yesterday I was at a clients to remove a virus, turns out their 13 year old son was surfing porn on the corporate computer and stashing it in a secure folder
Hope this didn't go overboard.
Rob.