What is Data Breach?
Data Breach occurs when a cyberattack gains access to confidential or private information, such as bank account numbers, personal health data or login credentials for email accounts and social networking sites. The information may be sold to cyber criminals for financial gain, or used as part of a larger attack against businesses, governments and individuals. Attackers may also seek other objectives such as stealing trade secrets, or damaging an organization’s reputation or bottom line.
The costs of a data breach can be severe for companies, individuals and even entire economies. For example, the Equifax data breach of 2017 was one of the largest consumer breaches ever reported. Hackers exploited a vulnerability in the company’s system and stole 3 billion people’s names, birthdates, phone numbers, passwords and security questions and answers. The data was sold on the dark web, and victims were at elevated risk of identity theft for years after the incident. The breach cost the company USD 1.4 billion between fines, settlements and legal fees.
Many types of data can be breached, but attacks often target high-value or sensitive information. Common attack vectors include weak password protection, unpatched software vulnerabilities and malware. Attackers incentivized by financial gain are the most common attackers, but there is also the threat of nation-state actors who breach government systems to steal information about sensitive political dealings or military operations. Regardless of the type or motive, cyberattacks often result in a loss of trust by consumers, damage to a business’s reputation and financial losses.