Everything You Need to Know About Data Breaches

A data breach occurs when there is an unauthorized release of classified or sensitive information, which may include passwords, credit card numbers, confidential data, or other private information. A data breach can occur either by accident or through deliberate action; an official with access to the information may expose the data by mistake, or an unauthorized individual, also known as a cybercriminal, may hack into a company’s database. Many people believe that only large corporations are susceptible to data breaches. However, smaller organizations can fall victim to data breaches as well.

A data breach can have massive consequences for both your company and for your clients. Not only does your reputation take a hit, but your clients have to face the negative outcomes of having their information stolen. Stolen bank or credit card numbers can result in large sums of money lost, and cybercriminals can use personal information to commit identity theft or fraud.

On top of all of this, data breaches are expensive to deal with. According to the Cost of Data Breach Study conducted by IBM and the Pomona Institute, the global average cost of a data breach for a company is $3.86 million, with the average cost per lost or stolen record around $148.

Knowing the possible causes of data breaches can help you in taking steps to prevent one from occurring. Data breaches typically occur due to an outside individual hacking into a company’s database, which is possible when a company’s security systems are weak. This can be due to inadequate password strength, software that is not up to date, or a number of other security flaws and weaknesses in a company’s system.

Types of Data Breaches:

There are several different categories of data breaches. Some common ones include:

• Insider Leaks: When an official with authorization to access private information steals this data for illegitimate use.

• Unintended Disclosure: When private data is released on accident, such as due to a technological malfunction.

• Loss/Theft: When physical forms of information, such as laptops, files, or hard drives, are stolen.

• Cyber Attack: When the company’s database system is hacked into by a cybercriminal.

• Employee Negligence: When human error results in the release of classified information to an unintended party.

It is essential that your company take a preventative stance on data breaches by ensuring that your data security system is effective. Your security team must constantly stay on the lookout for possible flaws in your system. Additionally, employees must remain extremely cautious when dealing with sensitive information.

Since a large amount of data breaches are the result of human error, the best thing that a business can do is to make an effort to fix mistakes that could potentially lead to a data breach. This requires constant assessments of your security system. Performance First Marketing has a thorough knowledge of online databases and can assist you in determine if you are at risk. Call us at (818) 949-2618 or contact us online to find out more about our services.