What is a data breach?

What is a data breach? Understanding the risks and consequences

The risk of being affected by a data breach is growing every year for both individuals and businesses. From multinational corporations to small startups, no organization is immune to the consequences of exposed data. But what is a data breach exactly, and how can you protect your data?

In this article, we explain what a data breach is, what causes it, the different types of data breaches, and what kind of information is typically exposed.

Understanding a data breach?

A data breach happens when private or protected information is accessed, exposed, or taken by someone who does not have permission. This data can include everything from personal information and financial records to company trade secrets and customer data.

Data breaches can be caused by cyberattacks such as hacking, where attackers aim to obtain confidential information, but they can also happen due to human error, poor security practices, or lost physical devices.

Hacking vs data breach vs data leakage

These terms are often confused, but they have different meanings.

What is hacking?

Hacking is the act of exploiting weaknesses in a system or network to gain unauthorized access. Hackers often use techniques like brute force attacks or malware to break into systems.

What is a data breach?

A data breach is the result of unauthorized access to data. It happens when someone gains access to sensitive information and uses it for malicious purposes. The stolen data might be leaked, sold, or used for blackmail, highlighting the risks associated with such breaches.

What is data leakage?

Data leakage usually involves accidental exposure of data. This might be a file left publicly online or a lost laptop. Even without malicious intent, leaks can lead to major data breaches if exploited by cybercriminals.

Common types of data breaches

Knowing how breaches happen helps you protect your data more effectively. Here are some of the most common types of data breaches.

Password attacks

Weak or reused passwords make it easy for attackers to gain access. Many use brute force methods or stolen credentials, often obtained through the dark web or phishing, to log in to multiple accounts.

Ransomware

Ransomware is a type of harmful software that blocks access to your files or systems and demands payment to restore it. It often leads to major data loss or exposure. Want to understand how ransomware attacks unfold and how to defend against them? Read our full on ransomware guide here.

Malware

Malware includes viruses and spyware that infect your device to steal or damage data. Explore our guide to malware to learn how it spreads and how you can protect yourself.

Keyloggers

A keylogger records everything you type including passwords and credit card details, which can be sent to a hacker. Read our full guide on keyloggers to understand how they work and how to defend against them.

Phishing

Phishing involves fake emails or messages that trick users into revealing personal information like login details or payment info.

Pretexting

Pretexting is a type of social engineering where the attacker pretends to be someone trustworthy like a colleague or support agent to extract sensitive data.

Physical exposure

Lost or stolen phones or laptops and even notes with passwords can lead to serious data breaches if they fall into the wrong hands.

Common causes of data breaches

There are many reasons why data breaches happen, such as mistakes made by people, system malfunctions, or deliberate attacks by cybercriminals. Some common causes of data breaches include:

• Weak passwords: Simple or predictable passwords increase the risk of unauthorized access, as cybercriminals can easily crack them and gain entry to confidential information.

• Unpatched software: Failing to update software and operating systems with the latest security patches can leave vulnerabilities open to exploitation.

• Phishing attacks: Phishing attacks can trick employees into revealing sensitive information, such as login credentials or financial data.

• Insider threats: Malicious insiders, including employees or contractors, can intentionally steal or compromise sensitive data.

• Lack of encryption: If sensitive data isn’t properly encrypted while being stored or transferred, it becomes much easier for unauthorized individuals to access it.

• Poor access management: Failing to implement proper access controls, such as role-based access control, can allow unauthorized access to sensitive data.

• Unsecured devices: Losing or stealing devices that contain sensitive data can lead to unauthorized access.

• Social engineering: Social engineering tactics, such as pretexting or baiting, can trick employees into revealing sensitive information.

What kind of information is exposed in a data breach?

The damage caused by a data breach depends on the type of data that is accessed.

For individuals

Hackers target personal identifiable information such as:

• Full name

• Social security number

• Credit card and bank account numbers

• Login credentials

• Health records

• This information can be used for identity theft, fraud and financial crime.

For businesses

Companies hold large amounts of data that can be valuable for cybercriminals.

Customer data

This can include customer records such as personal details like names, emails, addresses, and phone numbers, as well as:

• Login credentials and password information

• Purchase and payment history

• Credit card information

Company information

Businesses also risk exposure of internal data such as:

• Emails and documents

• Financial statements and performance data

• Strategic plans and roadmaps

Trade secrets

This includes the most sensitive information like:

• Product designs and development plans

• Source code or internal software

• Business strategies and client contacts

If this information is leaked, it can damage competitiveness and delay innovation.

How to prevent a data breach

You can reduce the risk of data breaches by following basic data breach prevention practices:

• Use strong and unique passwords

• Enable multi factor authentication

• Update software regularly

• Train staff to recognize phishing

• Encrypt sensitive data

• Restrict access to critical systems

• Monitor for unusual activity

Data security and access management

Implementing robust data security and access management measures can help prevent data breaches. Some best practices include:

1. Encryption: Encrypting sensitive data, both in transit and at rest, can protect it from unauthorized access.

2. Access controls: Implementing role-based access control and least privilege access can limit access to sensitive data.

3. Multi-factor authentication: Using multi-factor authentication can add an extra layer of security to prevent unauthorized access.

4. Regular security audits: Conducting regular security audits can help identify vulnerabilities and weaknesses.

5. Employee education: Educating employees on cybersecurity best practices and phishing awareness can help prevent data breaches.

6. Incident response plan: Having an incident response plan in place can help respond to data breaches quickly and effectively.

Notable data breach examples

Some notable data breach examples include:

• Yahoo: Back in 2013, experienced one of the largest data breaches in history, compromising the personal information of more than 3 billion user accounts.

• Equifax: In 2017, Equifax suffered a data breach that exposed the personal data of over 147 million people.

• Colonial Pipeline: In 2021, Colonial Pipeline suffered a ransomware attack that forced the company to shut down its pipeline.

• 23andMe: In 2023, 23andMe suffered a data breach that exposed the genetic data of over 6.9 million users.

Data breach notification laws

Laws regarding data breach notifications obligate companies to inform both impacted individuals and relevant authorities when a breach occurs. Some notable laws include:

1. GDPR: The General Data Protection Regulation (GDPR) requires organizations to notify affected individuals and regulatory bodies within 72 hours of a data breach.

2. CCPA: The California Consumer Privacy Act (CCPA) requires organizations to notify affected individuals and regulatory bodies within 30 days of a data breach.

3. HIPAA: The Health Insurance Portability and Accountability Act (HIPAA) requires healthcare organizations to notify affected individuals and regulatory bodies within 60 days of a data breach.

Responding to a data breach incident

Responding to a data breach incident requires a swift and effective response. Some best practices include:

• Containment: Containing the breach to prevent further unauthorized access.

• Notification: Notifying affected individuals and regulatory bodies as required by law.

• Investigation: Conducting an investigation to determine the cause and scope of the breach.

• Remediation: Implementing remediation measures to prevent future breaches.

• Communication: Communicating with affected individuals and stakeholders to provide transparency and support.

Conclusion

So what is a data breach? A data breach means sensitive data is accessed without permission. This can happen because of hacking, human error or poor security and it can lead to serious consequences for both individuals and businesses.

By understanding what a data breach is and how it happens, you can take steps to protect your information and reduce the risk of falling victim to cybercrime.