Short answer: A data breach occurs when sensitive information is compromised and accessed by unauthorised individuals – often due to human error or malicious cyberattacks. The consequences can be severe, including financial loss, reputational damage, fines and other legal sanctions. To reduce the risk, organisations should prioritise robust access controls, data encryption, and ongoing staff training in secure practices. While it may be difficult to eliminate the risk of data breaches entirely, the right compliance tools can help minimise the impact.
What is a data breach?
A data breach is an incident where unauthorised persons gain access to sensitive, confidential, or protected information. This can happen because of security issues in a system or network, or when the wrong person views a device or account.
Some data breaches are the result of human error, while others are orchestrated by malicious people. Cybercriminals use various tools and methods to get access to a company or an individual’s data. For example, they may use software like malware to gain access to a company’s network. Or, they could pose as a trusted person and send emails with harmful links to your employees.
How common are data breaches?
Data breaches have unfortunately become quite common in recent years. More data, more devices, more interconnected systems, and evolving cybersecurity threats all contribute to this trend. In fact, data breaches reported so far in 2023 add up to 451 million records breached globally. It’s important to note that not all data breaches are publicly disclosed. Sometimes, a company may not even realise that a breach has occurred. Others may choose not to disclose the incident to avoid reputational damage. Therefore, the actual number of data breaches is likely much higher than we know.
Browsing the news of recent statistics of cyber attack victims and breaches is sobering. A pharmacy in the U.S., a library in the Netherlands, a leasing company in Germany, a bank in Spain, a university in France, a school in the UK; and the list goes on. While we may associate data breaches with internet giants like Facebook and Twitter, small and medium-sized businesses (SMBs) are also among the victims. In fact, cybercriminals may target SMBs precisely because they may have weaker security measures in place. With fewer resources to train employees and secure their systems, SMBs are especially vulnerable to attacks and at risk of making costly mistakes. Either way, you’re doing yourself a favor by getting a cyber insurance.
Why is a data breach so serious?
A data breach involving business data such as intellectual property or legal documents can cause great damage to a business. Imagine your business strategies, product plans or research and development data being exposed to your competitors. You may not be fined for leaking your own trade secrets, but it can certainly have a negative impact on your business. Furthermore, dealing with a data breach takes time. Personnel will need to be allocated to investigate the incident, contain it, report it to authorities and affected individuals, and correct security issues. This will obviously disrupt normal business operations.
During a data breach, personally identifiable information such as names, addresses and ID numbers may be exposed. Leaking this personal information risks exposing people’s private information and even their security. This includes breaches of financial or health information, sensitive data about religion or sexuality, login information, and more. Consequences of a data breach can thus include GDPR fines and it can really affect customer trust in your company. Read more about what happens if you break the GDPR.
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Data breach examples
Data breaches can occur in various ways, targeting different types of data and exploiting vulnerabilities in different areas. Here are some common types of data breaches:
- Malware Attacks. Criminals can use software, such as viruses, worms, or ransomware, can infiltrate your systems and compromise your data. Malware can spread through infected email attachments, malicious websites, or compromised software, allowing unauthorised access to sensitive information.
- Phishing. Phishing is a social engineering technique where attackers trick individuals into handing over sensitive information such as login credentials, credit card numbers, or personal details. This is typically done through deceptive emails, messages, or websites designed to appear legitimate.
- Employee errors and insider threats. Data breaches can occur when employees, contractors, or other individuals with authorised access to sensitive data misuse or intentionally disclose it. Insider threats can be the result of negligence, malicious intent, or compromised accounts.
- Physical theft or loss. Data breaches can occur if physical devices, such as laptops, hard drives, or USB drives, containing sensitive information are stolen, lost, or improperly disposed of. If the data is unencrypted, unauthorised individuals can easily access and misuse it.
- Third-party breaches. Organisations often rely on third-party vendors, suppliers, or partners who may have access to their data. If a third party experiences a data breach, it can expose the shared data and affect your company.
- SQL injection. An SQL injection is an attack where malicious actors exploit vulnerabilities in a website’s code to inject malicious SQL commands. If successful, this can allow unauthorised access to a database and expose sensitive information.
- Misconfigured cloud storage. Improperly configured cloud storage services can inadvertently expose sensitive data to the public. If access controls and security configurations are not set correctly, anyone with the appropriate URL or access credentials can view or download the data.
- Physical intrusion. Data breaches can occur through physical intrusion, where unauthorised individuals gain access to secure areas, data centers, or servers, and compromise sensitive information directly.
- DDoS attacks. While primarily aimed at disrupting services, Distributed Denial of Service (DDoS) attacks can indirectly lead to data breaches. By overwhelming a system’s resources, attackers may exploit vulnerabilities and gain unauthorised access to data during the chaos caused by the attack.
- Unsecured wi-fi networks. When individuals connect to unsecured public Wi-Fi networks, their data can be intercepted by attackers who are also connected to the same network. This can result in the compromise of sensitive information, such as login credentials or financial data.
These are just a few examples of the different types of data breaches that can occur. It’s clear that you will need a variety of tools and strategies to protect your company from all of them. Let’s talk about what can help you prevent data breaches and reduce the harm they do to you and your customers.
FAQ about data breaches
1. What are the most common causes of data breaches?
Data breaches can occur due to phishing attacks, malware, insider threats, weak passwords or misconfigurations in IT systems. Phishing is particularly widespread and often involves deceptive emails that trick employees into revealing login credentials.
2. How should you respond to a data breach?
If a data breach is discovered, it should be handled immediately: isolate the issue, document the incident, and report it to the relevant supervisory authority within 72 hours. It’s also important to notify affected individuals if the breach poses a risk to their personal data.
3. Are small businesses also at risk of data breaches?
Yes, small and medium-sized enterprises (SMEs) are often attractive targets for cybercriminals, precisely because they may have fewer security measures in place. A strong cybersecurity programme is therefore essential—regardless of a company’s size.
Checklist to prevent a data breach
Preventing data breaches requires a comprehensive approach. Combine technological measures, security practices, and employee awareness. While no strategy is entirely foolproof, the following measures can significantly reduce the risk of data breaches:
1. Monitor the data you store
Inventory your data. Know what you have, where you store it, and who has access to it. Knowing where all your sensitive business and personal data is at all times is the first step to keeping it safe.
2. Passwords and user verification
Use strong passwords and implement two-factor authentication to ensure that only authorised individuals can access sensitive data. Then, regularly update and change your passwords to minimise the risk of unauthorised access.
3. Encryption
Use encryption to help protect data in transit and at rest. Encryption can safeguard sensitive information by making it unreadable to unauthorised people. Make sure any sensitive data you send by email, over networks or store on portable devices or cloud services is encrypted.
4. Software updates
Regularly update your operating systems, software applications, and security patches to protect against known vulnerabilities. Many data breaches occur due to outdated and unpatched software.
5. Secure networks
Use firewalls, intrusion detection systems, VPNs, and secure Wi-Fi to protect your network from unauthorised access. Additionally, you might segment your network to restrict access to sensitive data.
6. Security assessments
Perform security audits to identify and address potential weaknesses in your systems. Regularly scan for malware and conduct penetration testing to identify and fix vulnerabilities before they are exploited.
7. Train employees
Educate employees about cybersecurity best practices, the risks of phishing emails and social engineering, and the importance of data protection. Meanwhile, always promote a security-conscious culture that prioritises people’s privacy.
8. Control access privileges
Grant employees the least amount of access necessary to perform their job functions. For example, implement role-based access controls to ensure employees only have access to the data required for their specific roles.
9. Backup and recovery
Regularly back up critical data and ensure backups are secure and easily recoverable. This will help reduce the data you permanently lose in the event of a breach. Moreover, backups are always a good idea to protect your data from other incidents like device failure.
10. Vendor management
If you share data with third-party vendors or partners, conduct due diligence to ensure they have adequate security measures in place. Then, use contracts to make each party does their part to protect the data.
11. Incident response plan
Finally, develop and regularly update an incident response plan that outlines the steps you will take in case of a data breach. This plan should include procedures for containing the breach, notifying affected parties, and collaborating with relevant authorities.
Read here what you can do if you have already been hacked.
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Do you need help reporting a data breach?
Although no one wants their company to experience a breach of their data security, it is clear that a well-considered response can be essential to minimise your liability and maintain a positive reputation as a data processor. It is therefore important to plan how to handle a data breach. A central part of this plan should focus on how to effectively inform authorities, customers and other affected parties. Read more about how to report a data breach.
Help to prevent data breaches
Data breach prevention is an ongoing process that requires continuous adaptation. Simply having preventative measures and response plans in place can reduce data loss and your liability in the event of a data breach. By combining technical security measures, strong security practices and employee training, you can significantly reduce the risk of data breaches and better protect sensitive information. In Safe Online, we create IT solutions that help companies prevent data breaches.
DataMapper – Find your sensitive data
ShareSimple – Send and receive data securely in Outlook
RequestManager – Process data subject requests easily
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Sebastian Allerelli
Founder & COO at Safe Online
Sebastian is the co-founder and COO of Safe Online, where he focuses on automating processes and developing innovative solutions within data protection and compliance. With a background from Copenhagen Business Academy and experience within identity and access management, he has a keen understanding of GDPR and data security. As a writer on Safe Online's Knowledge Hub, Sebastian shares his expertise through practical advice and in-depth analysis that help companies navigate the complex GDPR landscape. His posts combine technical insight with business understanding and provide concrete solutions for effective compliance.
