How to prevent a data breach: A comprehensive guide

How to prevent a data breach - Main header image

This blog has been expertly reviewed by Andrea Rosales, Data Scientist at Colibri Digital.

Today, every company — no matter the industry, sector or working practices — needs to know how to prevent a data breach.

That’s because, when it comes to safeguarding sensitive data, the stakes have never been higher. The global average cost of a data breach has surged by 15% in just three years. According to IBM, the average incident now costs $4.45 million. This escalating financial risk highlights the pressing need for robust cyber security measures across the board.

But it's not just about the bottom line. Customers demand assurance and transparency with their information. When they trust a company with their personal data, they expect that certain protections are in place. If they’re let down, 66% of consumers say they would lose faith in a company post-breach and consider leaving for a rival.

These business impacts highlight the deep repercussions of compromised data. As such, companies must take a range of steps to keep data out of the hands of cybercriminals.

Andrea Rosales, Data Scientist at Colibri, commented: “It’s evident that every company, irrespective of its sector, must prioritise data breach prevention. The impact goes beyond finances; maintaining business integrity, customer loyalty, and trust is critical.”

In this blog, we’ll learn about data breaches, the most common vulnerabilities, their potential impacts, and how to protect against them.

What is a data breach?

A data breach occurs when sensitive or confidential information is accessed, stolen, or exposed without authorisation. It poses massive risks to individuals and organisations alike. Breaches may also be known as a security incident or data leak.

Cybercriminals carry out data attacks for different reasons. Primarily, breaching data has become a reasonably simple way to cause massive inconvenience and make vast sums of money. Attackers also know what a challenging process proper data governance can be for companies of all sizes. Any minor weakness in defences can provide a way in.

There are many ways that someone might gain access to business data. In some cases, it may go undetected for long periods. However, once attackers gain access to data, they will often make the fact known in order to achieve other goals. Common tactics for data breach attacks include:

Threatening to release sensitive information unless the company pays a ransom.
Deletion of key data unless specific demands are met.
Selling stolen datasets to other cybercriminals.
The use of private data to carry out further attacks or money-making acts, such as credit card cloning or identity theft.

How vulnerabilities lead to cyberattacks

A typical company has many potential vulnerabilities that can lead to a breach, such as:

Weak passwords and a lack of proper access controls can act as gateways for hackers to gain access to critical data.
Unsecured endpoints or mobile devices that allow easy access to corporate networks, especially with the increase of hybrid working.
Misconfigured on-premise or cloud computing infrastructure.
Lack of staff awareness, falling for phishing scams or social engineering. These can often be the easiest way for an attacker to deploy malware, including ransomware, as tools for cyberattacks.
Shadow IT, which involves using many apps without company control, increases the attack surface.
Outdated software and firmware could leave systems exposed to the exploitation of known vulnerabilities.
Insecure APIs can be exploited to gain unauthorised access to data or manipulate services.

With so many potential gaps in the security fence, modern companies often choose to invest in specialist security teams and experienced cyber security professional services.

The consequences of data loss

So, why have the impacts of a data breach risen to such heights in recent years? Put simply, the consequences have grown to become serious at best — and potentially devastating at worst.

Andrea said: “As a data scientist, I've witnessed firsthand how the ramifications of data breaches have surged, making robust data protection more crucial than ever. With more strict regulations like GDPR imposing severe penalties, it’s clear that comprehensive data security measures are indispensable in today’s digital landscape.”

For example, financial losses can now run into the millions of dollars. One of the most high-profile breaches ever seen came with the SolarWinds attack in 2020. In this breach, the SolarWinds supply chain attack compromised numerous government agencies and private companies, including Microsoft. The breach resulted in significant financial losses for affected companies, running into the billions of dollars.

Likewise, the severity of breaches can cause reputational damage and the loss of customers. Australian telecoms company Optus suffered a breach which exposed customer information. In the months following, the company lost around 10% of its client base to rivals.

Companies are also now subject to much tighter rules. Regulatory needs, including GDPR and data protection requirements, place robust penalties on those not guarding data in line with industry standards. In 2018, British Airways experienced a data breach that exposed the personal and financial information of 500,000 customers. Subsequently, it was fined £20 million for failing to protect data in accordance with GDPR.

Breaches can have knock-on effects for partners and the public. The 2021 Colonial Pipeline ransomware attack disrupted fuel supplies along the East Coast of the USA. While the breach primarily affected operational systems, it resulted in significant financial losses and reputational damage, involving both public trust and ongoing business.

The fundamentals of data security and data breach prevention

Fortunately, there are several steps organisations can take to protect against data breaches. To strengthen your security posture, it's essential to implement a range of cyber security measures. It requires a multilayered approach using various strategies and technologies.

Strengthening your security posture

One of the key steps is deploying effective cyber security measures to prevent unauthorised access and safeguard sensitive information, such as:

Implement firewalls, antivirus software, and strong password policies to counter common cyber threats.
Enforce multi-factor authentication to mitigate risks associated with phishing and social engineering attacks.
Use encryption protocols to protect sensitive data stored on laptops and hard drives.
Conduct regular audits and assessments to identify and remediate security weaknesses and potential vulnerabilities in systems and networks.
Deploy Intrusion Detection and Prevention Systems (IDPS) to detect and respond to suspicious activities and potential security breaches in real-time.

Updating security measures

Continuous improvement is also vital. Maintaining a resilient security posture isn’t a one-off job — threats are constantly changing, so you must, too. Conduct regular penetration tests and try to spot misconfigurations before attackers do. Likewise, regular assessments, software updates, and patches all play a pivotal role in addressing security threats and strengthening defences.

Education and awareness

While you must implement strong technological and system protections, you should also train your staff. Reports show that human error is responsible for three-quarters of all incidents.

As such, you should teach employees to recognise common phishing attacks and suspicious activity. You can also implement security policies to safeguard against human error. Try creating engaging cyber security training programs and resources for employees to stay updated on new threats.

Have a clear data breach response plan

While you should take all possible steps to avoid data breaches, you should also have a plan for if the worst should happen. Creating a comprehensive incident response plan can minimise the impact of data breaches and mitigate security incidents. It should include:

Naming a security team with clear responsibilities, roles, and permissions.
Identifying the types of data you hold and the security breach treatment they would require.
Real-time monitoring for quick detection of security incidents.

Often, companies only see the importance of this step when it’s too late. In fact, 51% of organisations increase security investments due to a breach. Creating a response plan now puts you ahead of the curve.

Use the right tools and providers

Finally, it’s essential to get the right help and expertise. Cyber security is a vast and specialised field. Often, companies do not have the budget or scope to cover all their needs. In this case, you can improve your security posture by:

Using instructions like GDPR guidelines to ensure compliance and protect personally identifiable information (PII).
Monitoring the dark web for domain email addresses or company credit cards included in data leaks.
Working with experienced providers to help you improve your defences.

How Nasstar can help

Preventing a data breach is a delicate balancing act. You need to maintain solid defences and prioritise data protection while also ensuring smooth business operations.

But the truth is that cyber threats can strike at any point and are continually evolving. Failure to put the proper defences in place can result in severe consequences, such as reputational damage, regulatory violations and financial penalties.

At Nasstar, we understand the relentless security challenges your business faces. Our cyber security services are tailored to provide ongoing protection for your organisation and customer data. With cutting-edge protective technologies, testing and monitoring of your IT infrastructure, we can help you achieve peace of mind. Speak to a specialist to learn more.

Frequently asked questions (FAQs)

How can I safeguard data?

To safeguard data, use encryption to secure it at rest and in transit. Use access controls to implement strong authorisation measures, limiting data access to the right users only. Likewise, data should be regularly backed up to minimise loss in the event of breaches.

How to reduce the risk of a data breach?

To reduce the risk of data breaches, undergo regular security assessments to identify and mitigate vulnerabilities. Use tools like multi-factor authentication to add additional layers of security, improving access control measures. Human error is also key. Attackers will target your staff, so educate employees on security best practices through comprehensive training programs to improve awareness.

How to handle data breaches?

In the unfortunate event of a data breach, a predefined response plan will help mitigate its impact. You will need to carry out several steps:

Activate the plan and have your security team take on their defined responsibilities.
Promptly notify affected parties and regulatory authorities to ensure transparency and compliance. This is especially crucial if you are subject to regulations such as GDPR.
Conduct a thorough breach analysis to identify its root causes and implement appropriate preventive measures.
Learn from the incident and minimise the likelihood of future breaches.

How to prevent a GDPR breach?

To prevent GDPR breaches, it’s important to understand the regulations. The aim is to ensure compliance throughout all data processing activities. You will need to:

Implement robust data protection measures, including encryption and access controls, to safeguard personal data.
Regularly assess compliance with GDPR guidelines.
Proactively address potential breaches to maintain regulatory adherence and data privacy standards.

How can employees help prevent data breaches?

Employees play a crucial role in preventing data breaches. After all, we’ve seen that human error is responsible for 74% of all incidents.

Staff can help you prevent data breaches by adhering to security policies like password protection. They’ll need to understand the risks of emails and links to mitigate the risk of phishing attacks. They should understand how social engineering works. Lastly, they should know to report any suspicious activities or potential breaches to designated teams as quickly as possible.