Data breach prevention is going to be the need of the hour as cybercrime continues to grow. Cybercrime is a growing threat to businesses of all sizes. Due to this unprecedented time many companies shifted to work-from-home model. Statics show data breaches are on a rise and can have devastating long-term financial set-back or reputational repercussions to your organization.
As a result, businesses must ensure that their data is secure to avoid substantial loss or theft.
As data breaches happens in different ways, there is no such thing as a one-size-fits-all remedy. Security needs a multifaceted approach to be effective.
In this article we’ll find out different
ways prevent data breaches.
Impact of a data breach on businesses
A data breach can destroy a business, especially for small and medium-sized businesses (SMB). Data is a valuable asset for any business especially, the data related to customers and payments. Cybercriminals find this data valuable. Lack of planning and security creates vulnerabilities for criminals to exploit.
It is estimated that 60% of small and medium-sized enterprises will close within six months after the attack. Larger businesses or agencies, on the other hand, will survive. Nevertheless, they too will suffer the consequences.
A data breach can impact businesses in the following ways;
Financial
Businesses must compensate for both immediate and hidden fines (fines, public relations, legal fees, and punitive regulatory measures) for a data breach. In addition, business needs to compensate customers, refund any stolen funds, and bear a share value loss. A smart organization will use this opportunity to
develop data security and disaster recovery strategies, which entails financial investment.
Fines and fees – The PCI Security Standards Council may impose fines or penalties for a data breach. Both regulatory organisations and card network brands will have different fines.
Forensic investigations – Major consequences of a data breach include, the business that was attacked will be accountable to perform a forensic investigation to determine the causes of the data breach. These investigations are costly and often yield valuable evidence and insights to prevent future data breaches.
Future security costs – Victims of a data breach may have to bear costs of credit monitoring for customers whose data was compromised. This may also include the costs of identity theft repair, card replacement, and additional compliance requirements from the PCI.
Reputation
Having a good reputation is the most prized asset for any organization. As a business, one must constantly put effort into building and maintaining brand integrity. A single compromising episode like a data breach can trash the best of reputations. According to a PwC report, 85% of customers won't shop at a business if they have concerns about their security policies.
Customers value their privacy, and a data breach will be perceived as a lack of regard for their data and privacy. Furthermore, 46% of businesses reported that security breaches harmed their reputation and brand value.
Intellectual Property
The product blueprints, business strategies, and engineered solutions are some of your most valuable assets for any organization. Your trade secret gives you an added advantage over your competitors. Hence it needs to be protected as some may not hesitate to use breached intellectual property.
Other significant consequences of a data breach include;
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A data breach can pit the CEO against the CISO
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Poisoned search results on your corporate brand
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Loss of sales after a data breach
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Unexpected expenses
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Less attractive to new employees, especially in tech positions
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Legal penalties after a data breach
Understanding the aftermath of a data breach is an important step to safeguarding your business. The next step is to create an action plan is to protect what you've worked so hard on.
How does a Data breach happen?
Data breaches sometimes can be traced back to planned attacks. But, on the other hand, it can result from a simple oversight by individuals or flaws in the infrastructure.
Accidental Insider
For instance, an employee uses a co-worker's computer and reads files without proper approval or permission. However, the access is unintentional/accidental, and no personal information is revealed. The data was breached, however, because it was read by an unauthorised person.
Malicious Insider
This person deliberately accesses/shares data with the intent of causing harm to an individual or company. The malicious insider may have genuine authorization to use the data, but the intent is to use the info in nefarious ways.
Lost or Stolen Devices
Any laptop or external hard drive with important information on it that is not encrypted or unlocked goes missing.
Malicious Outside Criminals
These are hackers who attack several vectors to collect information from a network or an individual.
Global cost of data breach
According to the Ponemon Institute's Cost of a Data Breach Report, global data breaches cost $3.86 million on average in 2020. The amount in 2020 was somewhat lesser compared to 2019 when it hit $3.92M. The same report found that the average cost of a data breach in 2020 totaled $8.64M.
Ways to prevent a data breach
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Conduct employee security awareness training
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Control access to data sensibly
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Update software regularly.
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Require secure passwords and authentication
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Simulate phishing attacks
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Evaluate accounts
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Limit access to your most valuable data.
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Review your user account lifecycle processes
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Insist on complex and unique passwords
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Protect against authentication bypass
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Store sensitive personal information securely and protect it during transmission
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Consider implementing a secure SSO solution
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Secure all endpoints
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Segment your network and monitor who's trying to get in and out
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Manage Vendors - Third-party vendors must comply.
Conclusion
Protecting against data breaches may appear to be a time-consuming procedure. You will be in a better position if you take an encrusted step to secure your data using various methods, policies, and procedures to ease security threats.
FAQ’s
How does a data breach impact an organization?
Depending upon the company and data type, the consequences may include destruction or corruption of databases, leaking of confidential information, the theft of intellectual property, and regulatory requirements to inform and possibly compensate those affected.
What is the most common data breach?
Hacking attacks are the most common cause of a data breach. However, it is often a weak or lost password that is the vulnerability that the opportunist hacker is exploiting.