From stolen personal information to leaked company secrets, the consequences of data breaches can be devastating. In 2024, the global average cost of a business data breach was $ 4.88M – the highest total ever.
The number of data breaches continues to increase year-on-year, and taking measures to prevent them is well worth the cost and effort. Using real-world examples of best practices, this guide examines the common types of data breaches, preventative measures, and the critical role employees can play in safeguarding sensitive information.
Common Data Breaches
A data breach is any security incident that exposes confidential, sensitive, or protected information to an unauthorized person. Data security breaches take many forms, but these are the most common:
Phishing Attacks: At least 75% of cybersecurity threats start with an email. Phishing attacks are email or website scams that trick people into giving away their personal information, such as login credentials or financial information. Often these emails appear to come from trusted organizations such as banks, governments, or even an employee’s own company.
Malware Infections: Short for “malicious software,” malware infiltrates systems to steal data, disrupt operations, or gain unauthorized access. This broad category includes viruses, spyware, and ransomware. One of the most famous data breaches of all time is the 2017 WannaCry ransomware attack that exploited vulnerabilities in outdated Windows systems, infected more than 200,000 computers globally and cost users an estimated billion.
Insider Threats: Insider threats occur when employees, contractors, or others within an organization misuse or are careless with their access, allowing for data to be stolen. Insider threat data breaches may be intentional or by accident, such as in 2010 when an Apple employee left an iPhone 4 prototype behind at a bar just miles from the company’s headquarters in California.
Brute Force Attacks: These data breaches take advantage of weak passwords that leave systems vulnerable. Brute force attacks remain common because they are highly successful. Passwords that are too easy to guess, such as ones using a birthday or home address, can make hacking into systems surprisingly easy.
Credential Stuffing: This cyberattack method exploits the fact that people tend to reuse passwords across websites. In these automated attacks, cybercriminals use stolen usernames and passwords from a different breach and try the logins on other platforms.
Preventative Measures
Preventing data breaches requires a multi-faceted approach. Here are key measures organizations can take and examples of their successful implementation:
1. Multi-Factor Authentication (MFA)
Also called two-factor authentication, MFA creates an extra layer of security that requires two or more pieces of evidence to log in, such as a password plus a unique code sent by text or created in an app.
Example: The finance sector has long used multi-factor authentication. Each time you use an ATM, two-factor authentication comes into play because you need to have both your ATM card and know your PIN. Many financial services companies now require MFA on their websites and apps to protect customers and their assets.
2. Data Encryption
This security method scrambles data, making it unreadable without a decryption key. Encrypting sensitive information ensures that even if data is stolen it is unreadable to cybercriminals.
Example: Apple encrypts personal data on its devices such as iPhones by default. Information is decrypted only when the device is unlocked with a passcode, Face ID or Touch ID. This ensures that even if devices are lost or stolen, data remains secure.
3. Regular Security Audits
Frequent security audits help identify vulnerabilities in your security infrastructure so you can patch them and ensure compliance with security protocols. You can use your own IT team to assess your organization's information systems, networks and processes, or you can employ third-party auditors. Some companies also offer rewards to anyone who finds security flaws in their products or networks.
Example: Meta’s Bug Bounty Program invites ethical hackers to report vulnerabilities found in its platforms such as Facebook, Instagram and Whatsapp and pays them based on the security impact. This allows the company to proactively address potential breaches. Meta has paid out over 6M in rewards so far.
4. Systems and Software Updates
Regular updates and patches close vulnerabilities that attackers could take advantage of. Keep your systems and software up to date to prevent this exploitation. A 2024 survey conducted by IT security company Sophos found that 32% of ransomware attacks began with an exploited vulnerability.
Example: Microsoft’s monthly security update releases have become known as “Patch Tuesday.” The second Tuesday of each month, Microsoft releases its software patches for their products to help keep devices secure and compliant. By making it a predictable monthly practice, Microsoft allows IT professionals to more easily plan and implement security strategies.
5. Employee Education
Human error causes the vast majority of cybersecurity failures. Phishing emails in particular are behind at least 75% of cybersecurity breaches. Train employees on how to spot phishing attempts, safeguard their passwords, and follow security protocols to reduce the risk of data breaches.
Example: Google requires security training for all employees as part of its orientation process. Depending on their role, Google employees also receive additional training on specific aspects of security or receive a security newsletter that alerts them to new threats.
6. Sensitive Data Access Restriction
Limiting employee access privileges to only the data and systems each person needs to do their job ensures that only authorized personnel can access specific sensitive information. This practice can also limit the amount of damage if a hacker successfully breaches an employee’s accounts.
Example: JPMorgan Chase and other financial institutions use role-based access controls to limit exposure of sensitive client data. The company implements “need-to-know” access based on the principle of least privilege to help protect against internal and external data breaches.
7. Threat Detection Systems
Data breach threat detection systems monitor an organization’s network activity for suspicious behavior. This allows IT and security teams to identify and react to potential threats quickly and reduce damage.
Example: Advanced threat detection systems such as IBM’s QRadar use AI to detect anomalies and respond to potential breaches in real time. These systems can reduce the average amount of time it takes to discover a security issue from days or weeks, down to just hours.
The Most Important Factor in Preventing Security Incidents
The single most important factor in preventing security incidents is employee awareness and adherence to security protocols. While technical safeguards are essential, human error remains the leading cause of data breaches. Phishing attacks, weak passwords, and the mishandling of sensitive data are often caused by a lack of awareness or training.
Example: Dropbox experienced a significant data breach in 2012 when a hacker used a stolen employee password to access customer data. In response, the company implemented mandatory annual security training for employees to improve its cybersecurity.
Preventing Data Breaches in Healthcare
Healthcare organizations are prime targets for data breaches due to the sensitive nature of patient data. In addition to the measures discussed earlier, consider the following safeguards to prevent healthcare data breaches:
Adopt Electronic Health Record (EHR) Security Standards - Ensure EHR systems comply with regulations such as HIPAA (Health Insurance Portability and Accountability Act) to protect patient data. Healthcare data regulations require hospital networks to use advanced encryption and access controls to secure patient records.
Use Network Segmentation - This framework divides a network into smaller sections or subnets to limit the impact of data breaches. Because each network segment acts as its own network, security teams can more easily control the traffic that flows into their systems. For example, with network segmentation a healthcare provider could isolate its patient records from its administrative systems to reduce exposure.
Monitor Medical Devices - Internet-connected medical devices such as medical wearables, health apps, and diagnostic monitors are increasingly common in hospitals and can be exploited if not properly secured. The FDA’s cybersecurity guidelines state that hospitals should regularly update device firmware and monitor for vulnerabilities.
How Employees Can Help Prevent Data Breaches
Employees are often the first line of defense against cybersecurity threats. Here’s how they can contribute to preventing data breaches:
Recognize and Report Phishing Attempts - Employees should be trained to identify phishing emails and avoid clicking on suspicious links or attachments. Some companies even send fake phishing attempt simulations to employees as part of security training to reduce employee susceptibility.
Use Strong, Unique Passwords - Encourage employees to use password managers to generate and store complex passwords. Organizations can also implement security protocols that mandate password complexity and expiration.
Follow Device Security Protocols - With the rise of remote work, device security is more important than ever. Employees should avoid using unsecured networks and follow any company policies requiring VPN use and endpoint security tools.
Participate in Security Training Programs - Regular training ensures employees stay up to date on the latest threats and best practices.
The increasing methods and frequency of data breaches has made cybersecurity more complicated. But the time, effort and expense of proactive measures remains far less costly than a data breach. Many companies also end up passing incident costs onto consumers, which is damaging to consumer trust.
Implementing common preventative measures such as MFA, encryption, and employee training can allow you to protect sensitive information and your company’s bottom line and reputation. Staying vigilant is the best way to safeguard your company data against breaches.