What is a Data Breach?
A data breach occurs when confidential information is stolen or taken without permission from a business, government entity, school or non-profit organization. This type of cyberattack targets organizations of all sizes, industries and geographies – and occurs with frightening regularity. Data breaches expose a variety of sensitive and private information including personal details, financial data and intellectual property. These breaches can have significant, lasting impacts on customers and the bottom line.
The motivation behind data breaches can range from malicious insiders, such as angry or laid-off employees who want to cause reputational damage or greedy executives who want to profit off the company’s data to hackers who are incentivized by financial gain. Cyberattackers typically target companies that are easy to break into or have weak security measures, including unpatched software, easy-to-phish password protection and lack of encryption. Attackers also look for personally identifiable information (PII), such as names, dates of birth, social security numbers and credit card details, to steal money from victims’ accounts or sell on the dark web for various purposes.
Once a data breach has occurred, it is vital that companies quickly detect and respond. This requires an effective security architecture that includes monitoring, alerting and detection capabilities. It is also important to create a breach response plan in case of a cyberattack. Depending on state law, this may include an assessment of the risk to consumers, time-sensitive notification requirements, and a restitution program that offers free credit monitoring or freezes for affected consumers.