Data Breach: What It Is and Its Impact on a Company
Data Breach: What It Is and Its Impact on a Company
Data breaches are increasingly making headlines around the world. Cybercrime is gaining significant attention, worrying many businesses.
However, few people realize that this cybercrime has a complexity that can make it even more dangerous. There are various types of breaches, each with different levels of severity and solutions.
Here, we outline some characteristics of data breaches to help you protect your company and even your personal accounts from this serious issue. Continue reading to learn more.
What is a Data Breach?
First and foremost, it’s important to understand how a data breach occurs before developing prevention methods for this cybercrime.
A data breach is an action orchestrated by cybercriminals. It happens when information is improperly collected, disclosed to third parties, or accessed by unauthorized users.
Also known as a Data Breach, this crime involves not only the invasion of systems but also the violation of the integrity of personal data of internet users.
According to a report by Syhunt, in 2021, over 220 million Brazilian users had their data leaked—almost the entire population of the country. This resulted in significant financial and moral damage for those affected.
Additionally, after a data breach, it's common to see an increase in attempts at scams targeting both users and the attacked company or system. These scams may come through emails, phone calls, messages in messaging apps, and even SMS.
Different Sources of Data Breaches
To add further complexity, data breaches can originate from many different sources. Common situations include:
Phishing Phishing is a sophisticated cyberattack that employs social engineering techniques. It involves manipulating individuals into providing their personal data to criminals.
A common example of phishing is receiving emails that closely resemble those from legitimate institutions, leading the recipient to click on malicious links. These links may install malware or direct users to fake pages, facilitating access to confidential information.
This is one of the most well-known methods of data breaches. For more details, we have an article specifically about phishing on our blog. It’s worth a read!
Weak Passwords and Access Controls Although it may seem like a simple issue, weak passwords and access controls can make it easier for data from the company and its clients to be leaked.
Especially in the context of hybrid or remote work, using weak passwords or systems without proper access controls eliminates barriers that cybercriminals can exploit to access information with little effort.
Exploitation of Vulnerabilities System vulnerabilities and flaws also provide entry points for cybercriminals to leak data more easily.
These bugs and vulnerabilities are constantly sought after by malicious users who exploit these gaps to invade systems and access confidential information.
External Factors Related to Equipment The theft of equipment and mobile devices containing confidential company data is also a cause of data breaches. This is particularly problematic when access passwords are weak, as mentioned earlier.
There are also cases where employees or former employees disclose company data to third parties who use this information improperly.
Finally, external actions also include the improper disposal of physical devices such as USB drives or even computers containing important information.
What Are the Impacts of Data Breaches on a Company?
Just as there are various ways in which data breaches can occur, this cybercrime can also have different consequences and impacts on a company or its users.
Leaked data can expose individuals, reveal important information about a company’s operations, and even cause severe financial damage to a brand. Here are some potential impacts of data breaches:
Attempted Scams The more information about a company that is leaked, the more frequent the scam attempts will be.
Leaked information can lead to more personalized and elaborate phishing attempts, scams through messaging apps with detailed information, and other issues.
Another type of scam is data ransom, where money is demanded in exchange for not disclosing the improperly collected information—essentially cyber extortion.
Online Account Invasions and Identity Theft Another impact of data breaches is the possibility of invading personal user accounts, using stolen identities for various scams, or even theft from bank accounts.
This invasion can also facilitate access to other profiles or logins on various platforms for different purposes.
Financial Losses Credit card cloning or making purchases and loans in the names of those affected by the data breach is also a frequent occurrence.
Numerous unauthorized bank transactions have been identified as stemming from user data leaks.
Privacy Violations Although not always the primary goal of data breaches, privacy violations can also result from this cybercrime.
Private conversations, photos, videos, and various daily activities of individuals and companies can be accessed and improperly disclosed, causing financial, social, and psychological distress for the victims.
Notable Cases in History
Data breaches are such a significant topic in the business and technology world that some cases involving the improper disclosure of information have become historic milestones in cybersecurity.
Here are three notable cases:
Adobe Case (2013) Nearly ten years ago, Adobe was involved in one of the most emblematic data breaches worldwide.
152 million customers had their names and passwords improperly disclosed, along with 2.8 million credit card numbers available online.
The company was sued by several customers, and in 2016 it faced a trial. To this day, the company only confirms the exposure of 38 million accounts. A fine of $1 million was agreed upon.
Facebook Case (2016) In 2018, Facebook was at the center of probably the largest data breach controversy ever recorded.
It was revealed that Cambridge Analytica, a company responsible for collecting and processing Facebook data, was accused of improperly leaking data from 87 million users in 2016. Among these profiles, 443,000 were Brazilian.
Additionally, it was proven that this breach aimed to influence the outcome of the 2016 US presidential election, which resulted in Donald Trump becoming president.
1.4 Billion Users Case (2017) Another significant case of data breaches occurred in 2017 when a list of over 1.4 billion usernames and passwords from popular sites was exposed on the internet.
The users were from platforms like Netflix, Last.FM, LinkedIn, Minecraft, etc. This list has been frequently used by cybercriminals for attempts at scams and other infractions.
Data Protection Laws
With internet users becoming more aware of the dangers of data breaches, many countries have developed laws requiring companies and platforms to invest in cybersecurity.
In Brazil, the General Data Protection Law (LGPD) was a long-standing request that finally came into effect in September 2020. There is also Law No. 12.737, dated November 30, 2012, known as the Carolina Dieckmann Law, which introduced changes to the Brazilian Penal Code, defining cybercrimes.
As a result, many organizations with an online presence have focused on customer and user privacy and security, and have been forced to accelerate investments in information security.
Companies that do not comply with the regulations may face various consequences, including high fines.
We have a comprehensive guide on LGPD in case your company has questions about how to adapt. Check it out here!
What to Do in Case of a Data Breach
So, what should you do once you realize that your company's confidential information has been leaked?
First and foremost, don’t panic! Notify the administration or your superiors at work. If you are in a leadership position, start the protection steps, which are:
- Change access passwords;
- Block access to the company’s bank accounts on mobile devices and computer equipment;
- Inform banks of possible data breaches;
- Enable two-step verification;
- File a police report;
- Report to the National Data Protection Authority (ANPD) website.
Other measures may be necessary depending on the leaked data, whether it involves client or employee information, among other conditions.
How to Prevent Data Breaches in Your Company
However, the most important advice might not be what to do after a data breach, but how to prevent such occurrences, right?
Some measures are simple and can be quickly implemented, such as regularly updating security services and software or implementing usage policies for company equipment.
It is essential that employees also take necessary precautions to prevent information loss, such as being cautious with suspicious websites and apps.
Investing in Cybersecurity Measures
One of the most crucial measures for preventing data breaches is certainly investing in cybersecurity.
For this, it is important that your company has an internal or outsourced team that handles information security.
In this context, Bug Bounty programs—reward systems for identifying bugs—are a very interesting strategy against cybercrimes.
As a trend in cybersecurity, this method ensures that your company’s systems are constantly analyzed, providing better protection against attacks from malicious users.
BugHunt, Brazil’s first Bug Bounty platform, works with highly skilled information security experts. They thoroughly analyze the systems of partner organizations to find vulnerabilities that could serve as entry points for cybercriminals.
Want to learn more about protecting your company from data breaches? Schedule a meeting with BugHunt!