What is a data breach?

Data breaches are often the result of a cyberattack, though that’s not always the case. If a bad actor got their hands on patient files at a doctor’s office or customer information at an auto shop, there’s still a data breach occurring. Because of the increase in data breaches worldwide, as well as the financial ruin they can bring, individuals and businesses alike need to be proactive against data breaches.

Measuring the impact of a data breach

In 2024, the average cost of a single data breach is $4.88 million – that’s a 10% increase from last year! Because of how detrimental data breaches can be today, it’s more important than ever to stop breaches in their tracks. AI and other automation technologies are one of the most effective ways to prevent breach-related damages. In instances of a breach, organizations that had AI security tools in place saved $2.22 million more than their unprotected counterparts.

How a data breach happens

Not all scammers are going to conduct data breaches in the same way; going undiscovered is their objective. However, there are a few key things that happen leading up to and during a data breach – take a look:

Research/Scouting

Chances are, if your business falls victim to a data breach, the person behind the breach put many hours into their plan. In this phase, the attacker is researching your systems, identifying vulnerabilities, and forming a plan. Often, they’re lurking in your ecosystem for weeks or months before there’s any sense that something is wrong.

Active Attack

As mentioned, attackers could use cyberattacks – like ransomware or phishing – to achieve their means, but they also might take the time to get a job internally or pose as a vendor to carry out their attack. Once the attack is active, it’s about mitigating the damage from it as much as possible.

Data Exploitation

If you fail to identify an active attack, prepare for the data exploitation phase. Scammers might collect and sell the data, they could hold it hostage for ransom payments, or they might use the data to further attack your business, your customers, or your employees.

Risk Factors

Every day, bad actors get smarter and more strategic, trying out new tactics and making it harder for businesses to prevent data breaches. Though we cannot stop the evolution of tactics, we can take some time to understand the biggest risk areas:

Human Error

This is a BIG one. If employees or company leaders don’t identify a phishing email and click the predatory links it contains, they could be opening the door to a number of data breaches. Humans make mistakes all the time, but in the case of data breaches, these mistakes are more costly than you can imagine.

Social Engineering

Sometimes, it’s something as innocent as letting in someone who says they’re an HVAC professional without checking their credentials that multiplies your organization’s level of risk. Social engineering is a method that attackers use to gain entry into a business. They pose as someone who “should” be there and hope that no one notices the out-of-place individual.

System Infiltration

Poor cybersecurity protections or outdated software systems are major, major vulnerabilities when it comes to data breaches. Even something as simple as using updated versions of business software can bolster protections against system infiltration. There are a lot of ways hackers can get into your system, and it’s up to you to prevent that.

Poor Security Hygiene

Not changing passwords, keeping a list of passwords on your computer, or refusing to use two-factor authentication for all system users are huge red flags. When bad actors notice this kind of stuff, they start working to take advantage of it very quickly.

How to prevent a data breaches

Many industry experts say that it’s not a matter of “if” you get attacked, but a matter of “when.” Though that may be true, there are still a number of things that all individuals and businesses should be prioritizing to prevent attacks and lessen their impact when they do happen.

Strong Passwords

Poor passwords are the reason for 81% of company data breaches. Keeping track of unique, long passwords often feels like a full-time job, but trust us, it’s worth it. By refreshing passwords every few months and refraining from using the same password across multiple accounts, you’re exponentially increasing your protection from data breaches.

Data Security Tools

Having tools that are working 24/7 in the background to monitor network activity and flag any suspicious behavior is a must for businesses of all sizes. Humans can’t monitor cybersecurity to the level it deserves, so investing in a tool that can will always be the smart move.

Secure Payment Platforms

Transactions that involve sending or receiving money are hotspots for data breaches. By using a secure payment platform – like Eftsure – businesses can operate with a collective peace of mind, knowing that all financial transactions are protected.

Employee Education

Again, human error is one of the biggest risk factors in data breaches. All employees need to be trained to understand the current risk levels, best practices, and what to watch out for.

Summary

• A data breach occurs when unauthorized users steal sensitive information, often leading to identity theft, financial loss, or data exploitation. The average cost of a data breach in 2024 is $4.88 million.
• Data breaches typically involve extensive planning, followed by active attacks using methods like phishing or social engineering, and end in the exploitation of stolen data.
• Preventing data breaches involves using strong, unique passwords, investing in data security tools, utilizing secure payment platforms, and educating employees on best practices.