Preventing Data Breaches
How to Keep Your Business Safe from Cyberattacks
Authors
Meredith Montgomery
13 March 2023
Key takeaways
Ensure regulatory compliance: Whether it's HIPAA, GDPR, or other regulations, businesses need to ensure they are compliant with applicable rules and guidelines for data collection, management, and protection.
Implement a compliance management system: A comprehensive compliance management system can help businesses stay organized and ensure they are meeting regulatory requirements. This may include appointing a compliance officer, using a compliance management tool, and establishing due compliance processes.
Stay on top of evolving compliance standards: Compliance requirements are constantly evolving, so businesses need to stay up to date on the latest developments and adjust their processes accordingly. This may involve conducting regular compliance audits, staying informed about emerging regulations, and investing in compliance training for employees.
Leadership lacks commitment
With the increasing reliance on technology in businesses, cybersecurity threats are becoming more prevalent than ever. Cyber attacks can cause significant harm to businesses, including data breaches, loss of intellectual property, and reputational damage. For companies that handle sensitive information, such as healthcare providers, maintaining compliance with regulations such as HIPAA and GDPR is essential to protect their customers' data. According to a report by the HIPAA Journal, in 2021, there were over 550 healthcare data breaches reported, resulting in the exposure of over 47 million patient records. This highlights the need for leaders to commit to cybersecurity threats to ensure HIPAA compliance and protect their customers' data.
In addition to HIPAA compliance, businesses that operate in the European Union must also comply with GDPR regulations. GDPR and HIPAA compliant data collection is critical to protecting individuals' data privacy rights. Failure to comply with GDPR can result in hefty fines, which can significantly impact a business's bottom line. According to a survey by Cisco, in 2020, the average cost of a data breach in the United States was $8.6 million. Therefore, leadership must commit to GDPR and HIPAA compliance to protect their customers' data and avoid financial penalties.
To ensure compliance with regulations such as HIPAA and GDPR, businesses must have a comprehensive compliance management system in place. This includes having a designated compliance officer who is responsible for ensuring due compliance with relevant regulations, regularly reviewing compliance management processes, and training employees on compliance best practices. Additionally, businesses must implement an IT-compliance program to ensure the security of their systems and data. Failure to comply with regulations can result in malicious compliance, where employees may intentionally disregard compliance requirements, leading to significant compliance risks for businesses. Therefore, implementing a compliance management system is critical to mitigate compliance risks and protect customer data.
Types of business data breaches
In recent years, the occurrence of data security breaches in companies has been on the rise, resulting in an increased risk for businesses of all sizes and industries. As technology advances and more organizations operate online, the threat of cyber attacks looms large, with the potential for sensitive information such as customer data, financial information, and confidential business data to be stolen. The increasing sophistication and variety of attack techniques have contributed to the growing number and type of data security breaches. This trend is of great concern, as data breaches can lead to significant consequences, including financial loss, legal liabilities, and damage to a company's reputation. Hence, it is crucial that companies take proactive measures to safeguard their data from the ever-evolving cyber threats. Let’s review the most common cyber security attacks.
Malware attacks: Malware, short for malicious software, refers to any software intentionally designed to cause damage or gain unauthorized access to a computer system or network. A malware attack involves the distribution and execution of malware code to compromise a system, steal data, or damage a system's functionality.
Phishing attacks: Phishing attacks are a type of cyber attack in which an attacker masquerades as a trustworthy entity, such as a bank, an email provider, or a social media platform, and attempts to trick individuals into revealing sensitive information such as login credentials or credit card details. Phishing attacks are often carried out via email, social media messages, or text messages.
Insider threats: Insider threats refer to the risk posed by individuals within an organization who have access to sensitive data or systems and use that access for malicious purposes. Insider threats can take many forms, including stealing data, sabotaging systems, or intentionally causing damage to an organization's reputation.
Physical breaches: Physical breaches refer to security incidents that involve unauthorized access to physical locations, such as data centers, server rooms, or offices, where sensitive information is stored. Physical breaches can occur through theft, vandalism, or unauthorized access by individuals who are not authorized to enter the premises.
Social engineering attacks: Social engineering attacks are a type of cyber attack that uses psychological manipulation to trick individuals into divulging sensitive information or performing actions that are not in their best interest. Social engineering attacks can take many forms, including phishing, baiting, pretexting, and tailgating.
Ransomware attacks: Ransomware attacks are a type of cyber attack in which an attacker encrypts an organization's data, rendering it unusable until a ransom is paid. Ransomware attacks often involve threats to leak sensitive data if the ransom is not paid, and can cause significant financial and reputational damage to organizations that fall victim to them.
Preventing data breaches
How to prevent data breaches
As the amount of data stored by organizations continues to increase, the risk of data breaches is becoming more prevalent. A data breach can result in the theft of sensitive information such as customer data, financial information, and confidential business data. The consequences of a data breach can be severe, including financial loss, legal liability, and damage to an organization's reputation. Therefore, it is imperative that organizations take proactive measures to prevent data breaches.
Evaluate your security procedures.
Evaluate your security procedures to ensure compliance with regulations and industry standards, as non-compliance can lead to costly data breaches. For instance, a study by IBM found that the average cost of a data breach in 2020 was $3.86 million. Furthermore, the same study found that companies with fully deployed security automation technologies experienced an average data breach cost of $2.45 million, while companies without these technologies incurred an average cost of $6.03 million. Therefore, it is critical to ensure that your organization's security procedures comply with regulations such as GDPR and HIPAA to avoid the potential financial and reputational damage caused by data breaches.
In addition to regulatory compliance, ensuring SOC2 compliance is also crucial for organizations that handle sensitive customer data. According to a 2020 report by the Ponemon Institute, data breaches caused by third-party vendors cost an average of $4.29 million, up from $3.33 million in 2018. Implementing SOC2 compliance procedures can help mitigate the risk of data breaches caused by third-party vendors and provide customers and partners with the assurance that their data is secure. The report also found that companies that had implemented SOC2 compliance procedures experienced a lower data breach cost, with an average of $3.09 million compared to $4.5 million for companies that had not.
Conducting regular audits and assessments can help identify gaps in your security procedures and ensure compliance with regulations and industry standards. For example, a study by Verizon found that 43% of data breaches involved social engineering attacks such as phishing. Conducting regular employee training on identifying and reporting social engineering attacks can help reduce the risk of data breaches caused by human error or negligence. In conclusion, evaluating your security procedures for regulatory compliance and industry standards is essential in preventing data breaches and avoiding the potentially severe financial and reputational consequences they can cause.
Protect your cloud and data.
The rapid adoption of cloud computing has brought many benefits to businesses, including cost savings and increased agility. However, this adoption has also brought new security challenges, as businesses are now storing their sensitive data and applications in the cloud. To protect your cloud and data, it is essential to implement a robust cloud security strategy that includes multiple layers of protection.
One way to protect your cloud and data is to implement access controls. Access controls help prevent unauthorized access to sensitive data and applications by requiring users to provide valid credentials to access them. This can include multi-factor authentication, which requires users to provide two or more forms of authentication, such as a password and a biometric factor. Additionally, businesses can implement role-based access control, which restricts access to data and applications based on an individual's job responsibilities.
Another way to protect your cloud and data is to implement encryption. Encryption is the process of converting sensitive data into an unreadable format that can only be accessed with a decryption key. By encrypting data stored in the cloud, businesses can protect against unauthorized access and data breaches. Encryption can be implemented at the application level, where data is encrypted before it is stored in the cloud, or at the storage level, where data is encrypted after it is stored in the cloud.
Train your employees to follow security procedures.
The actions of employees can pose significant security risks for businesses. Without proper training, employees may inadvertently compromise sensitive data or fall victim to phishing attacks. To reduce the risk of security breaches caused by employees, businesses must prioritize training on security procedures.
Regular security awareness training is an effective way to train employees on security best practices. This training should cover topics such as password hygiene, phishing awareness, and data protection. It should also include simulations of common security threats to test employees' ability to identify and respond to potential threats. In addition to training, businesses can implement access controls to ensure that employees only have access to the data and applications necessary for their job responsibilities. Role-based access control and multi-factor authentication are effective ways to ensure that sensitive data is only accessible to authorized personnel. By implementing these measures, businesses can reduce the risk of security breaches caused by employee error or negligence.
Respond when a mistake happens.
In the event of a mistake or breach, a prompt and effective response is crucial to limit the damage and protect a business's reputation. The first step in responding to a breach is to identify and isolate the affected systems. This requires conducting a thorough investigation to determine the extent of the breach, including what data has been compromised and how the breach occurred. Businesses should also take immediate steps to contain the breach, such as disconnecting from the network or resetting passwords.
After containing the breach, businesses must communicate with relevant stakeholders, including customers and employees. This communication should include a clear explanation of what happened and what steps the business is taking to address the issue. Businesses must also implement new security measures to prevent similar incidents from occurring in the future. This may include implementing access controls, conducting regular security assessments, and providing ongoing employee training on best security practices.
To minimize the risk of future mistakes or breaches, businesses must implement a comprehensive security strategy that includes multiple layers of protection. This may involve using security software, implementing firewalls, and conducting regular security audits to identify vulnerabilities in the system. By taking these steps, businesses can help to protect their sensitive data and minimize the risk of reputational and financial damage resulting from a security breach.
When prevention won't do it
What to do if your company’s data has been breached
Data breaches can have serious consequences for businesses, including financial loss, reputational damage, and legal consequences. According to a report by IBM, the average cost of a data breach in 2020 was $3.86 million, highlighting the importance of having a plan in place to respond to a breach. If your company's data has been breached, it is essential to respond quickly and effectively to minimize the damage and protect your sensitive information. This requires a comprehensive plan that includes identifying and containing the breach, communicating with stakeholders, and implementing measures to prevent future breaches. By taking these steps, businesses can help to protect their sensitive data and minimize the risk of financial and reputational damage resulting from a breach.
Identify the source and extent of the breach.
When a data breach occurs, the first step is to identify the source and extent of the breach. This involves conducting a thorough investigation to determine how the breach occurred, what data has been compromised, and how much damage has been done. It is essential to act quickly to contain the breach and prevent further damage.
One way to identify the source and extent of the breach is to use security software and tools to conduct a forensic investigation. This involves analyzing system logs, network traffic, and other data to identify the source of the breach and determine what data has been compromised. It may also involve conducting interviews with employees or other stakeholders to gather more information about the breach. Once the source and extent of the breach have been identified, businesses can take steps to contain the breach and implement measures to prevent similar incidents from occurring in the future.
Take security to the next level.
As cyber threats become increasingly sophisticated, businesses must take their security measures to the next level to stay ahead of potential threats. This requires a comprehensive security strategy that includes multiple layers of protection.
One way to take security to the next level is to implement advanced security software and tools. This may include using artificial intelligence and machine learning to identify potential threats and automate security processes. Businesses can also implement security measures such as intrusion detection systems, firewalls, and encryption to protect their sensitive data from cyber threats.
Another way to take security to the next level is to conduct regular security assessments to identify vulnerabilities in the system. This can help businesses to stay ahead of potential threats and implement measures to prevent breaches before they occur. Additionally, businesses should provide ongoing employee training on best security practices to ensure that employees are aware of the latest threats and know how to respond to potential security incidents.
Talk with legal authorities.
When a data breach occurs, businesses must comply with relevant laws and regulations to mitigate legal and financial liabilities. This requires reporting the breach to regulatory authorities and working with legal experts to determine the company's legal obligations to affected parties. Businesses must also ensure compliance with data protection laws such as GDPR and HIPAA, which mandate specific steps to protect customers' data.
To avoid legal and financial consequences, businesses should consult with legal experts to determine the necessary actions following a breach. These may include notifying affected parties, implementing measures to prevent future breaches, and reporting the breach to regulatory authorities within a specific timeframe. By working with legal authorities, businesses can demonstrate their commitment to protecting customers' data and minimize the risk of legal and financial damage.
Notify those who were affected and neutralize the breach.
Once the affected parties have been identified, businesses must take immediate steps to notify them of the breach. This includes providing clear and concise information about what data has been compromised, how the breach occurred, and what steps the business is taking to mitigate the damage. Businesses should also provide guidance on what affected parties can do to protect themselves, such as changing their passwords or monitoring their credit reports.
To neutralize the breach, businesses must take steps to prevent further access to the compromised data. This may include disconnecting from the network, resetting passwords, or shutting down affected systems. Additionally, businesses must implement measures to prevent future breaches, such as implementing access controls or conducting regular security assessments. By taking these steps, businesses can help to protect their sensitive data and minimize the risk of financial and reputational damage resulting from a breach.
