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Last Updated on May 28, 2022 by Work In My Pajamas
Data breaches can be accidental or deliberate. Accidental incidents occur when data is damaged or lost. Deliberate incidents can result from malicious or criminal acts. According to a Ponemon-IBM study, 48% of data breaches result from deliberate attacks. The good news is that there are several ways to prevent these incidents from occurring. The first step is implementing strong cybersecurity measures. Data breach prevention should also include regular backups and regular security updates.
In This Post:
Data Breaches Are Becoming More Common
Whether it is in personal data or sensitive business information, how data breaches happen is increasingly common in technology. This is because companies increasingly rely on data to make important decisions, and data related to customers and payments is particularly valuable to criminals. Target is one such company; its systems were breached in 2013, exposing 110 million customers’ personal information, which was used to commit identity theft.
In 2013, Target suffered a massive data breach in which a third-party HVAC company was compromised by malware. As a result, hackers were able to access point-of-sale systems and steal the personal information of 70 million customers. In 2017, Ponemon reported that 56 percent of organizations experienced data breaches due to third-party vendors. In addition, the difficulty of detection further compounds the impact of these incidents. According to the Ponemon Institute’s study, it took 197 days to identify and contain data breaches that had occurred in 2018.
They Are Becoming More Severe
A recent study by the Ponemon Institute, sponsored by IBM, found four times as many data breaches worldwide in 2018 as in 2005. While the total number of records breached globally is unknown, the study estimated more than one billion records were exposed. In addition, data breaches reported to the Information Commissioner’s Office in the United States increased by seventy-five percent over the past two years. According to the study, data breaches in the United States totaled more than 1,300 in 2017, compared to just 200 breaches in 2005.
As the volume of data increases, so do the number of data breaches. These incidents are costing companies millions of dollars. One example is the cyberattack on the Target Corporation, which caused a $248 million loss. Another example is Yahoo’s report of 500 million accounts being stolen in 2014. The problem is getting worse as technology advances. Large companies and small and medium businesses are becoming the target of these attacks.
They Cost Businesses More
Recent studies have found that data breaches cost businesses more than any other type of breach. However, the cost of these incidents may be underestimated, especially if organizations do not adapt to changes in IT. For example, as of May 2020, there were an estimated 192,000 coronavirus-related cyberattacks. Additionally, in May and April 2020, 98 percent of point-of-sale data breaches were financially motivated. Meanwhile, data breaches in the healthcare industry have increased by 58 percent in the past year. Web application breaches now make up 43 percent of all breaches, nearly doubling since 2018.
The average cost of a data breach depends on the time to discover the breach. According to the Ponemon Institute, recovering from a data breach can range from $1.76 million to $4.21 million. The cost to recover from a data breach increases with the length of the breach. Therefore, businesses are expected to incur more expenses if the breach takes longer than three months. The cost of recovery is higher for businesses that lose more than four percent of their customer base.
They Can Ruin Brands
In technology, a data breach can damage a company’s reputation and ruin the revenue stream. Recent hacks have compromised the privacy of millions of users and companies. Their name and logo will become front-page news, but they may also lose goodwill and trust with customers. Disgruntled customers may even begin to disavow their favorite brand online. It can be a terrible PR nightmare, so it is important to handle the aftermath as quickly as possible.
In the world of technology, data breaches can affect both the customer’s relationship with the brand and the company’s reputation as an employer. It will be harder to attract and retain top talent if a brand is ruined. Additionally, damaged brands can be challenging to sell to investors. All of this means additional expenses for PR and marketing and time that could be spent nurturing leads. Data breaches are costly and will adversely affect operations.
They Can Ruin Businesses
Security breaches ruin businesses, and reputations are at stake. A recent AT&T data breach exposed thousands of accounts. Even prankster hackers can damage reputations. Lying to customers about a breach ruins their trust and loses goodwill. And what’s worse, these attacks can cause hefty fines. Companies must take steps to prevent them and to protect their customers. Fortunately, there are some tools and techniques for businesses to protect themselves and their customers.
In 2016, two large data breaches led to Verizon’s acquisition of Yahoo for less than expected. Unless businesses take steps to protect their customers’ information, data breaches can destroy their reputations. Companies that aren’t prepared to deal with the consequences of a breach will experience a steep rise in costs and customer churn. They may even face lawsuits. In addition, if your business is big enough, a data breach can negatively impact the sale of the company in the future.
