What is a Data Breach?

A Data Breach is a security incident where sensitive or confidential information is accessed, exposed, or stolen without authorization. Stolen data may involve personal information like names, passwords, and medical records, or corporate files like customer data, financial data, and trade secrets. A form of cyberattack, data breaches may happen due to malicious attacks, human error, or physical theft of devices or documents.

Types and Examples of Data Breaches

Below are the common types of data breaches and real-life examples.

• Hacking and Malware Attacks: In this type, cybercriminals gain unauthorized access using malicious software or techniques to exploit system vulnerabilities.
  • An example is the 2024 cyber incident of the US National Public Data (NPD), wherein the sensitive information of 2.9 billion people has been leaked on the dark web.
• Phishing Attacks: These include fraudulent attempts to trick users into sharing information, often through fake emails or websites.
  • In 2020, the US Department of the Interior’s computer systems have been hacked by attackers using the evil twin phishing technique — tricking individuals into connecting to a Facebook WiFi access point.
• Insider Threats: These are breaches caused by employees, contractors, or business partners intentionally or unintentionally exposing sensitive data.
  • In February 2022, Yahoo claimed that one of its former research scientists had stolen the company’s intellectual property by downloading confidential data from their corporate laptop to two personal external storage devices while still working in the company.
• Ransomware Attacks: Cybercriminals use ransomware or malicious software encrypting data to demand payment for its release.
  • OmniVision, a California-based imaging sensor manufacturer, experienced a security incident resulting in the encryption of certain OVT systems by an unauthorized party. The hackers have obtained personal information from the company.
• Cloud Storage Misconfigurations: Due to weak or improper security settings of entities, their sensitive data stored in cloud services can be exposed.
  • In 2019, a hacker exploited a misconfigured firewall to access cloud-stored customer data of Capital One Breach, affecting over 100 million individuals.

What are the consequences of data breaches?

Being attacked by cybercriminals resulting in data breaches can lead to a negative impact on individuals and businesses. This includes the following:

• Financial Losses: Due to unchecked incidents and data breaches, businesses can lose billions of dollars yearly. The financial toll can span from paying fines and penalties, and litigation costs to losing customers and revenue loss.
• Legal Ramifications: Failure to protect data can lead to legal action and regulatory scrutiny. Post-breach, companies may face audits and severe penalties from regulations.
• Intellectual Property Losses: Data breaches can lead to exploited stolen trade secrets and competitive disadvantages.
• Reputational Damage: Data breaches can erode trust, making customers hesitant to associate with the business.
• Long-Term Recovery: Post-breach, companies can still face lingering challenges such as increased security costs and rebuilding trust.

How to Prevent Data Breaches

1. Strengthen password security by enabling multi-factor authentication or using strong passwords.
2. Keep software updated by installing regular updates or enabling automatic updates.
3. Encrypt sensitive data with data-at-rest encryption and data-in-transit encryption.
4. Conduct regular training on cybersecurity and promote a security culture within the company.
5. Implement access controls to all data and accounts.
6. Conduct regular audits and use Intrusion Detection Systems (IDS) to alert for potential breaches.
7. Secure physical devices by locking devices and implementing device tracking or remote wiping features.
8. Choose a cloud service provider with strong security measures to protect corporate data.
9. Create and test regularly a comprehensive incident response plan to minimize the impact of a breach.