What is a Data Breach?
Data Breach is a security incident in which confidential, private or protected information (such as customer information, healthcare records or financial data) is exposed to someone not authorized to access it. This could be a result of an internal error (such as an accidental email sent to the wrong person) or a malicious act by a third party, such as a hacker.
Depending on the type of information involved, breaches can impact individuals or entire industries. The most common types of breached data include personal identifiable information (PII) and login credentials for online services, such as email, social media and websites. PII is also often the target of ransomware attacks, whereby attackers hold data hostage until a fee is paid.
In the case of a data breach, companies are often required to notify affected consumers in accordance with applicable law. For example, in the US, all states and the District of Columbia require notification of data breaches involving personal information.
The damage from a data breach can be enormous. It is estimated that 85% of customers in retail, finance and healthcare will stop doing business with a company after a breach, and up to a third will tell others about their experience.
A bad reputation can also have long-term effects on a company’s revenue. In addition, a data breach can lead to a higher volume of requests for access and erasure from individuals and can also have regulatory implications in some jurisdictions.