What is a Data Breach?
A data breach is an incident that exposes confidential, private or sensitive information to a person who isn’t authorized to see it. It can be the result of a cyberattack or a simple mistake by an employee.
A breach can cause long-lasting and expensive damage to organizations of all sizes. It can destroy a business’s reputation and make it difficult to gain new customers. It can also impose fines, settlements and legal fees on the business.
For instance, a bank’s data breach may expose the personal information of its customers including names, addresses, phone numbers, Social Security numbers and passwords. This is a breach of customer privacy and can lead to identity theft. Or a data breach could affect a government agency by exposing sensitive information about military operations, national infrastructure details or political dealings.
Many states have laws requiring businesses to notify their customers when sensitive information is exposed in a data breach. These laws vary by state and are based on an assessment of the risk of harm to individuals.
A business can mitigate some of the risks associated with a Data Breach by using multi-factor authentication (MFA), encrypting all data and by regularly updating its software systems. It can also use tabletop exercises, which are simulations of cyberattacks, to strengthen its defenses and test its response capabilities. In addition, it can help minimize the impact of a breach by having an incident response team in place that is ready to take immediate action.