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What is a Data Breach: Understanding the Basics of Data Security Breaches

In today’s digital age, data breaches have become a prevalent concern for businesses of all sizes. Understanding what a data breach is and how it can impact your organization is crucial for safeguarding sensitive information. In this article, we will examine the fundamentals of data security breaches, including their definition, typical hacker techniques, and potential business repercussions. By gaining a comprehensive understanding of data breaches, you will be better equipped to implement effective security measures and protect your valuable data.

What is a Data Breach?

Any unlawful access, disclosure, or acquisition of sensitive data, including trade secrets, financial records, or personal information, is referred to as a data breach. It happens when a hacker, cyberattacker, or other unauthorized person gets access to a business’s database or network and takes or alters data from there. Regardless of an organization’s size or industry, data breaches can occur.

How Do Data Breaches Occur?

Data breaches can occur through various methods and techniques that cybercriminals employ. Some common techniques include:

1. Phishing:

Hackers send fraudulent emails or messages pretending to be a trusted source, such as a bank or a reputable organization. When the malicious links or attachments in these emails are clicked, the hacker can take control of the recipient’s machine or network.

2. Malware:

Malicious software, such as viruses, worms, or ransomware, can infect a computer or network and enable unauthorized access to data. Hackers often distribute malware through infected websites, email attachments, or software downloads.

3. SQL Injection:

This technique involves manipulating a website’s database by injecting malicious code into the input fields. By exploiting vulnerabilities in the website’s code, hackers can gain unauthorized access to the database and retrieve sensitive data.

4. Insider Threats:

Data breaches can also occur internally when employees or individuals with authorized access to the data deliberately or accidentally disclose or misuse sensitive information. This can be due to negligence, a lack of proper security protocols, or malicious intent.

5. Weak Passwords:

Weak passwords make it easier for hackers to steal unauthorized access to systems and networks. This includes passwords that are easy to guess, use common words or phrases, or lack complexity. Additionally, reusing passwords across multiple accounts increases the risk of a data breach.

6. Unsecured Wi-Fi Networks:

Using unsecured Wi-Fi networks, especially in public places, can expose a company’s data to potential hackers. Hackers can intercept data transmissions and gain unauthorized access to sensitive information.

7. Third-Party Security Breaches:

Many businesses rely on third-party vendors or partners to handle certain aspects of their operations. If these third parties experience a data breach, it can also put the business’s data at risk. It is crucial for businesses to have strong contracts and security measures in place when working with third parties to ensure the protection of their data.

What are the Risks Associated With a Data Breach?

Financial Loss and Data Loss

Data breaches can result in significant financial losses for businesses. The cost of investigating the breach, restoring systems, notifying affected individuals, providing credit monitoring, and potential legal fees can be substantial. Furthermore, losing data, clients, and economic possibilities might result from harming a company’s reputation.

Legal and Regulatory Compliance

Depending on the nature of the data breached, businesses may be subject to legal and regulatory penalties. Many jurisdictions have strict data protection laws in place, and failure to comply with these regulations can result in fines, lawsuits, and even criminal charges. Additionally, businesses may be required to notify affected individuals and regulatory authorities about the breach, which can further impact their reputation and credibility.

Damage to Reputation

A company’s brand can be seriously harmed by data breaches, which weaken client loyalty and confidence. Consumers may lose faith in a company if they believe it is not protecting their personal information with care. Businesses may struggle to reestablish their reputation as a result of negative publicity and media coverage surrounding data breaches, which could have a long-term impact on their growth and profitability.

Intellectual Property Theft and Confidential Information

Data breaches can also expose a company’s intellectual property to theft. This can include trade secrets, patents, proprietary algorithms, and other important knowledge that provides a competitive advantage to a corporation. Intellectual property theft can have serious ramifications for a firm, such as a loss of market edge, diminished innovation, and decreased revenue.

How to Prevent a Data Breach

1. Implement Strong Security Measures:

Businesses should invest in robust security measures, such as firewalls, encryption, and multi-factor authentication. Regularly update and patch software and systems to address any vulnerabilities.

2. Train Employees:

Educate employees about the importance of data security and train them on how to recognize phishing emails, suspicious websites, and social engineering tactics. Encourage the use of strong passwords and provide guidelines on safe online practices.

3. Limit Access:

Grant employees access to sensitive data on a need-to-know basis. Restrict access to only those who require it for their job responsibilities. Regularly review and update access privileges as employees change roles or leave the company.

4. Backup Data:

Regularly backup data to secure locations, both onsite and offsite. This ensures that even if a data breach occurs, the business can still recover their important information.

5. Regularly Monitor and Update Systems:

Implement monitoring systems to detect any suspicious activity or unauthorized access. Regularly update software, firmware, and security patches to protect against known vulnerabilities.

6. Data Ecryption:

Use encryption to protect data both at rest and in transit. Encryption ensures that even if data is stolen, it remains unreadable without the decryption key.

7. Implement a Incident Response Plan:

Have a plan in place for how to respond to a data breach. This includes procedures for containing the breach, notifying affected parties, and recovering and securing data.

8. Conduct Regular Security Audits:

Regularly assess and evaluate your security measures and protocols. Conduct security audits to identify any weaknesses or vulnerabilities in your systems.

9. Know Your Legal Obligations:

Familiarize yourself with any applicable data protection laws and regulations. Understand your legal obligations regarding data privacy and take the necessary steps to comply with them.

What are the Legal Implications of a Data Breach?

The General Data Protection Regulation (GDPR) in the European Union, the California Consumer Privacy Act (CCPA), and industry-specific regulations like the Health Insurance Portability and Accountability Act (HIPAA) all require businesses to take data protection seriously. Failure to comply may result in monetary fines and other legal action.

Data breach victims, including customers or workers, may initiate legal actions against the affected organization. Financial losses, identity theft, and emotional suffering are all examples of damages that can be claimed after a data breach. Legal fees and damages awarded or awarded against the company in these cases can be very high.

Investigations into data breaches are commonplace among regulatory bodies including data protection agencies and state attorneys general. The company’s compliance with data protection laws and regulations is the focus of these probes. The company could face fines, penalties, or other forms of enforcement action if it is found to be in breach.

Loss of client confidence and significant harm to the company’s brand are only two of the many negative outcomes that might result from a data breach. This can lead to fewer sales, higher customer turnover, and trouble bringing in new clients. Restoring a tarnished reputation takes time and money.

Conclusion

In conclusion, data breaches pose a significant threat to businesses in today’s technology-driven world. As attackers continue to evolve their tactics, it is essential for organizations to stay vigilant and proactive in protecting their data. By understanding the basics of data breaches and implementing robust security measures, businesses can fortify their defenses and minimize the risk of falling victim to these malicious attacks. Remember, staying informed and investing in advanced technologies and security protocols are key to keeping your valuable data protected from potential breaches.

Final Thoughts

When it comes to cybersecurity, Buzz Cybersecurity stands out as a trusted authority. Our proficiency in managed IT services, advanced cloud solutions, proactive managed detection and response, and reliable disaster recovery sets us apart. We proudly serve clients ranging from small businesses to large corporations, not only in California but also in the surrounding states. If you’re seeking to bolster your digital integrity and safeguard against potential security incidents, reach out to us here. Our team is dedicated to assisting you every step of the way.

Sources

  1. https://oag.ca.gov/privacy/ccpa
  2. https://en.wikipedia.org/wiki/SQL_injection
  3. https://www.itgovernanceusa.com/data-breach-notification-laws

How To Avoid Amazon Gift Card Malware Scams

The Gift That Keeps on Taking

This year, many people awoke on Christmas morning and were delighted to find Amazon gifts card delivered to their email. For some, however, the email they clicked on wasn’t really from Amazon, but part of a phishing campaign. What they actually received was the gift of a Trojan horse in their email. It’s enough to make anyone pause, because even though we’d like to think we’d be savvy enough to catch a phony scam, the truth is that hackers are getting more sophisticated with how well they can disguise their malware. Let’s take a look at this particular email attack, and help you to reduce your chances that you’ll be their next victim.

To begin with, when the email was opened, the virus didn’t automatically get installed. The recipient was asked to click on an “enable content” button under the premise that the attachment to the gift card was created in an online version of Microsoft Office. Once the button was clicked, it allowed malware to be downloaded and installed to whatever computer the user was on.

The particular type of malware that came through in this latest attack was the Dridex Virus. The original version of Dridex first appeared back in 2012, and over the years has become one of the most prevalent financial Trojans. Up until now, the cybercriminals using it have mainly targeted the financial sector, including the banking industry and its customers. One of the reasons why this incarnation of Dridex is so dangerous is because it has been known to give threat actors, such as DoppelPaymer, access to compromised systems to deploy ransomware. The FBI issued a warning last month that predicted DoppelPaymer attacks would see a spike in activity. In 2019, the hackers hit several high-profile targets, including Chile’s Ministry of Agriculture.

This is the first time DoppelPaymer has gone after people via a fake gift card, and the recent change in the ways the attacks are being targeted have left many scratching their heads. There could be many reasons for this. Some speculate that the answer that makes the most sense is simply that with many people celebrating the holidays in isolation this year, online shopping has seen an increase, and hackers, sensing that Amazon gift cards would be a popular gift, are looking to exploit any opportunity to profit. Others worry that the reasons could be much darker.

Typically Dridex tries to lure unsuspecting users to click on an attachment in their email to access the content, in this latest case a gift card. But you can stay clear of becoming a victim by remembering just a few simple rules.

To begin when you get any type of gift card, especially one from Amazon, it will never ask you to download an attachment. A legitimate gift card from Amazon will send you an email indicating who the gift is from, as well as a code in the message that you enter on the Amazon website to add funds to your account. If you get an email that purports to be from Amazon and it’s asking you to download an attachment in a Microsoft Word document, anything resembling such, close the email immediately, and mark it as spam. If you think the gift card might be legitimate, contact the sender via phone, as opposed to email, to find out if it was from them or not.

Scammers also went after online shoppers, too. In one instance, a fake website was set up to lure unsuspecting Target gift card recipients to check their balance. Once the card number was entered, the bad guys had all they needed to go on an illegal shopping spree. Bleepingcomputer reported in a recent article that in some instances, the differences between Target’s actual page and the imposter are so minute that most people would not notice the differences. The layout, text, and colors are a very good imitation. To further obfuscate the user, once their information is entered, they get a “checking balance” message that buys considerable time, and eventually appears to “time out,” telling the user that an error has occurred, and verification has failed. Most people assume the issue is either a user error, or that online traffic is maxing out the site, causing it to crash. They then go about their business, intending to check back layer, and never suspect that they’re been scammed.

When people we consider naïve get scammed, we comfort ourselves with the thought that we would have been savvier and not fallen for it. But it’s super frustrating when the hackers are getting better all the time and we see something that we probably would have fooled even us. In the case of the Target gift card scam, the only “tell” is that the web address is a bit suspect, and none of the links on the rest of the page work. But during the holiday season, when people are overloaded with trying to get shopping done, or after the holiday when they are trying to come down from having brain overload, it’s understandable that sometimes things slip by that we might otherwise be wise to.

Especially if they’re cleverly disguised and seem familiar to what we’re used to seeing, with only slight differences.

What we can tell you is to always, always trust your gut. As cybercriminals continue to get more sophisticated with their tactics, while following these guidelines will help you to avoid most scams, there is no exhaustive list that covers every single situation. Most of the time though, you will have a nagging feeling that you need to slow down before you click. Pay attention to that.

As always, if you want to train your employees on how to spot phishing scams, Buzz Cybersecurity has our Lunch and Learn Program that will be continuing in 2021. Contact us today to learn more and schedule us to come out and educate your employees on how to take ownership of protecting your company’s assets!

Image by Robinraj Premchand from Pixabay

How To Mitigate Insider Data Theft

7 Ways to fight a growing cyber threat in the new remote employee culture

Insider data theft is a sobering thought. As a business owner, you can install specialized antivirus software, train your employees on how to spot a phishing email, and invest in a company that provides superior network monitoring, but none of that will do any good if your enemy is already within your walls.

Now don’t misunderstand. You need to be doing all of those things; I’m not advocating that you skip any of those steps in securing your business (Buzz Cybersecurity offers a free audit to help ensure you’ve got the basics covered), but with an unprecedented number of employees working from home due to the current Covid-19 situation, you need to entertain the possibility that someone in your organization may be willing to steal from you at some point in the future. Or already is. If you have a smaller organization, that can feel like a personal betrayal. Some may not even want to entertain the thought. But the majority of your employees are good, trustworthy people and will thank you for taking these steps because data theft puts their jobs at risk, too.

For the purposes of what we’re discussing in this blog, we’re excluding data breaches that occur accidentally via authorized viewing of data where no information is shared, lost or stolen devices, or malicious attacks coming from outside your company. While costly, they are a separate conversation. If you’d like more information on ransomware attacks, click here. This article is only going to deal with those employees who, for reasons ranging from selfish financial gain to righting a perceived wrong done to them by your company, have made an intentional decision to break the law and shares confidential data with others for the intent of causing harm to an individual or company.

What Can I Do?

  1. Evaluate and classify all sensitive data. Most people don’t think like criminals, but for this to work, you have to take a step back and look at your assets objectively. What do you have in your possession that is most valuable if leaked and therefore more likely to be the target of theft? Make a list of what systems hold this information and create a security governance policy to make it harder to access this type of data. Revisit your list at least twice a year to make sure it’s current.
  2. Limit the number of people you trust with access to sensitive data, and limit the amount of access they have. In 2018, Tesla learned this the hard way. According to CEO Elon Musk, a disgruntled employee was responsible for making “direct code changes to the Tesla Manufacturing Operating System under false usernames and exporting large amounts of highly sensitive Tesla data to unknown third parties.” The electric car company decided to forgo limiting the privileged access it allowed it’s employees to have, and according to CNBC, it cost the company a staggering $167 million dollars in damages. And while it’s common sense that no company will ever be 100% safe against these types of attacks, this particular incident is considered unfortunate because it could have been avoided.
  3. Give people overlapping shares of trust. This is basically a system of checks and balances. It ensures that no one person has a singular Osterhagen Key that allows them to take out your company. You don’t want to give one person the ability to launch the nuclear warheads, and most employees will appreciate not being put in a position to wield such responsibility or to yield to temptation.
  4. Monitor employee activity. No one likes to be Big Brother, but sensible employees will understand the benefits of working from home—namely less money spent on gas, eating out, work attire, not to mention more time to sleep and spend with family—far outweigh the need for companies to monitor for safety. Plus, anything they need to do on a personal level that they don’t want you to be privy to can be done on their PC or phone. Take a proactive approach to detect suspicious behavior when it occurs, rather than waiting for a breach.
  5. Establish an acceptable use policy and then educate your employees about it. Having an official corporate policy about what is and what is not acceptable when it comes to using your company’s data. Then make sure all employees go through training that makes them accountable for what they’ve learned. Don’t assume that it’s common sense. And make sure employees know the legal consequences that will be taken should they be caught stealing company information.
  6. Establish an anonymous tip line. Peers will often be the first to notice a co-worker’s suspicious behavior. Giving them a means to report unusual or erratic behavior will encourage your employees to come forward, especially if they are assured that they will not be subject to any retaliation because they can remain anonymous. Some may feel that this makes them a snitch, so it’s your job to help themselves realize that they’re actually being a hero, because not only could they be saving your company from financial ruin, but in the process, they’re helping to save their own jobs and the jobs of their friends.
  7. Pay attention when an employee leaves your company, even when it’s on good terms. Don’t delay when it comes to terminating all employee accounts. Make sure any access to get back into your facility is revoked, and remove the employee from all access lists. You may be tempted to only do this when an employee is “disgruntled,” but making this a standard operating practice when a person departs your company will ensure that no one slips in through a door that should have never been left open.

Ready to take the next step in protecting your company and your livelihood?

Reach out to us today for a free consultation!