What Are the Consequences of a Data Breach?
A data breach occurs when private information is stolen or compromised by cyberattackers. It can happen to anyone, but certain industries like healthcare, retail, banking and education are more likely to be attacked. Attackers use flaws in your operating systems, software, hardware or network to gain entry and steal private information. These flaws can include unpatched vulnerabilities, weak password protection or malware infections.
Once hackers get inside your system, they can do anything they want. Typical tactics include exfiltrating data for sale, using it themselves or even locking up the data and demanding ransom. It’s important for organizations to understand the far-reaching consequences of a Data Breach so they can properly mitigate risk and defend against attack.
The cost of a Data Breach increases over time. A large part of the cost is detection and escalation, with 51 percent of costs incurred within the first year after the incident (IBM).
If you experience a breach, you must immediately take action to contain it. That can mean isolating affected systems, limiting access to compromised accounts and deploying any available security updates. It also requires identifying and communicating with the parties affected by the breach. In the case of a textile company where personal information was exposed, it would need to notify employees of the breach and advise them on how to protect themselves from identity theft. It’s also important to alert service providers of the breach and verify that they have fixed any vulnerabilities that may have contributed to the breach.