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Data breaches are incredibly costly and detrimental for an organization. According to the Verizon Data Breach Investigations Report, most data breaches occur when unauthorized persons access, modify, or delete sensitive data. The report found that 86% of breaches happen when:
- A third-party service is hacked, and unauthorized persons access customers’ usernames and passwords;
- A system (mobile device, computer or any other device) is infiltrated with malware that logs plaintext passwords;
- A phishing site tricks an unsuspecting user into entering their credentials by pretending to be a different site;
- A brute force attack or credential stuffing is used to enumerate valid credentials.
The Impact of a Data Breach on an Organization
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Financial Impact
The immediate impact of a data breach is the expense incurred to detect, respond and recover from the incident. Costs in this case may result from forensic investigation, lost business, efforts to regain public trust, legal fees, ransom demands and post-breach expenses.
A report by IBM, Cost of a Data Breach 2023, showed that the average data breach cost in 2023 was $4.45 million, an increase from $4.35 million in 2022. The expenses you’ll likely encounter include:
- Isolating compromised hardware and software;
- Analyzing logs for suspicious activity;
- Documenting findings;
- Addressing vulnerabilities to prevent future breaches;
- Repairing or replacing affected systems.
A data breach can significantly impact your company’s share price and overall valuation. For example, in 2013, Yahoo experienced a breach just as it was about to be acquired by US telecom company Verizon. As a result, the acquisition price was reduced by $350 million from the initial asking price.
Operational Disruption
According to IBM’s Cost of Data Breach Report 2023, you may need up to 277 days to identify a breach. During this time, some or all operations in your organization may be halted.
Breaches involving customer records, financial information, and operational databases may force a company to halt all operations until the cause and recovery plan are defined.
Suspending operations in your organization leads to substantial revenue loss and a potential decline in your client base. This may affect your immediate financial stability and damage your reputation. Additionally, employees may face uncertainty, which can affect morale and productivity.
Long-Term Reputational Damage
The reputational damage caused by a data breach can bring an organization to its knees. A study by the Ponemon Institute suggested that more than a third of customers in healthcare, retail and finance stop doing business with breached companies. In addition, 85% will inform others about their experience, while 33% will likely vent their frustration on social media.
Today’s consumers are too aware of the value of personal information and will avoid doing business with any organization that cannot protect their data. In some instances, hackers have been reported to use stolen information to make unauthorized purchases or open new accounts.
Legal Consequences
Another costly aftermath of data leakage is the legal consequences. Under data protection regulations like CCPA in California, organizations must demonstrate their capacity to protect customers' data. Individuals can take legal action and claim compensation amounting to hundreds of millions of dollars if a breach occurs, whether intentional or accidental.
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Implementing preventive strategies is essential, given the significant impact of cyberattacks on your company’s financial health, operations, and employee well-being. While specific measures depend on your unique situation, the following steps can provide a robust framework for data breach mitigation.
Identify and Analyze the Breach
As part of the analysis, you need to understand the underlying cause of the attack and the methods used by attackers to implement the infiltration. You can use early detection systems like SIEM or IDS to identify any unusual or malicious activity in your system.
Once the breach is known, the next cause of action is to evaluate its extent. Your team needs to determine the sensitivity of data compromised and assess the potential impact.
Your forensic team should also examine logs and network traffic to trace the attackers' footsteps. Ensure that no system is rebooted to preserve the evidence before a complete image has been taken.
Contain the Breach
Once you understand the type of data breach you're dealing with, you need to stop unauthorized access from escalating further. Here are some steps to follow:
- Disable network access in the affected system and cut all remote access
- If necessary, temporarily turn off certain services
- Change all your passwords, especially those providing access to sensitive systems.
- Reset all your security tokens and review security controls to ensure only authorized persons access critical systems.
Document every action taken during containment, as this information can be vital during post-incident analysis.
Restoration and Repair
After containment, you need to determine the root cause of the breach and ways to prevent it in the future. Begin by accessing the initial attack vector, fixing all the possible vulnerabilities exploited, and studying the sequence of events before the breach.
At this point, your team will have a clearer picture and begin the restoration process. You could remove malware, reset credentials or passwords or pitch security vulnerabilities exploited by the attackers.
Once you’re confident about your systems' safety, you can restore the infected systems and data from backups. You may also consider bringing an external company to perform an extensive test on your system and network before returning online.
Communication
Aside from taking internal measures to mitigate data breaches, it’s essential to understand the legal requirements for data breach notifications. Be clear on who to notify (affected individuals, authorities), the set timelines for messages and the specific information to be disclosed.
A clear communication plan will simplify crisis management during a data breach. Define the messages you will convey, choose the most appropriate modes of communication, and designate the best person in your company to relay the information.
Ensure your customers and business associates understand what happened, the potential risks and what they can do, if any. It’s also crucial to take responsibility and provide regular updates to ease anxiety.
Post-Event Assessment
Once everything is done and settled, prepare a comprehensive incident report for internal and external use. The report should capture the timeline of events, the nature and scope of the breach, the data and systems affected, how the breach was discovered, and the steps taken to respond. You may also include the impact of the breach on your organization and, if any of your employees were liable, what happened to them.
Based on the analysis, your team should implement regular testing to ensure the integrity of your systems, data, and network.
How to Secure Yourself Against a Data Breach
Implement a Robust Cybersecurity Framework
Your organization should always access its systems and identify vulnerabilities. The only way to achieve this is by adopting frameworks like Zero Trust architecture to limit access and enhance security.
Here's a breakdown of some frameworks that can impact your security footprint;
- Policies and Settings: Have clear rules and guidelines for using your devices.
- Configuration Profiles and Security Baselines: Specific settings should be applied to systems to ensure all systems in your organization are configured consistently and securely.
- Conditional Access: Users should only have access to approved devices.
- Security Features: Includes attack surface reduction, threat protection, and access controls.
- Compliance and Regulatory Assessment: This ensures that your security posture meets industry standards and regulations, such as the Personal Information Protection and Electronic Documents Act (PIPEDA).
Regular Security Audits and Vulnerability Assessments
Audit your systems regularly to mitigate new attacks and defend your organization. Such proactive measures will help you detect and address potential security weaknesses.
Our comprehensive assessments leverage the industry-standard CIS Controls v8 framework to deeply examine your system configuration, baselines, and critical features. This approach provides a clear picture of your security posture and actionable steps to fortify your defenses.
Conduct Regular Employee Awareness Programs
With the influx of email-based phishing attacks, smishing attacks (SMS-based) and vishing attacks (voice-based), having an informed group of employees can be a formidable first line of defense.
A report by the Ponemon Institute indicates that employee negligence is the root cause of many data breaches. The report suggests that over 78% of respondents say negligent or malicious employees have been responsible for at least one data breach within their organizations.
When employees understand the importance of having a secure password and proper data handling, the risk of data breaches in your organization will significantly reduce.
Invest in Advanced Threat Detection and Response Solutions
The rise in sophisticated cyber threats has made organizations face unprecedented challenges in safeguarding their digital assets. Traditional cybersecurity measures such as firewalls and antivirus software often fail to detect and mitigate advanced threats, leaving businesses vulnerable to costly data breaches. For this reason, businesses must invest in advanced threat detection like Microsoft Sentinel SIEM and Defender XDR technologies.
Data Encryption and Secure Storage Practices
Sensitive data is always at risk of being intercepted or accessed without authorization, so having a robust data protection plan is crucial. Research has shown that organizations with inadequate encryption practices suffer far more significant consequences than those with solid encryption and secure storage solutions.
Encrypting sensitive data ensures it remains unreadable to attackers even if intercepted. Additionally, implementing secure storage solutions adds another layer of defense to your system and data.
Most importantly, regular penetration tests should be performed to establish a well-defined plan to restore data after a breach.
Partner With CrucialLogics to Fortify Your Defenses
The financial impact of a data breach can devastate your company, and finding the time and expertise to take preventative action can be challenging. That's where we come in with certified expertise in Microsoft Sentinel SIEM and Defender XDR technologies. We also evaluate your environment from multiple viewpoints, including configuration, security baselines and other vital features to unearth potential vulnerabilities.
Why Choose CrucialLogics?
- Expertise: Our team of cybersecurity professionals has extensive experience in preventing and mitigating threats.
- Advanced Solutions: We use cutting-edge threat detection technology to stay ahead of cybercriminals.
- Comprehensive Support: We provide full-spectrum cybersecurity services, from preventative measures to immediate incident response.
- Tailored Strategies: Every business is unique, so we tailor our approach to meet your needs.
Speak with us today to secure your business and protect your future.
