Data breaches are a nightmare for organizations because they lead to severe consequences such as loss of customer trust, legal penalties, and even business closure in some cases. Unfortunately, data breaches have become quite common in recent years as cybercriminals continuously find new ways to exploit vulnerabilities in systems and networks. For over 12 years, the United States has been ranked by IBM as having the highest cost for a data breach at $5.09 million more than the global average. Let’s take a look at the top causes of data breaches that organizations must be aware of to take proactive measures to safeguard their data.
Compromised Login Credentials
Compromised login credentials such as usernames and passwords are among the leading causes of data breaches. According to IBM, it’s harder to identify data breaches that involve lost or stolen credentials. Also, these breaches cost $150,000 more than an average data breach. Cybercriminals use various methods to steal login credentials. For example, through phishing attacks cybercriminals pose as legitimate entities and trick users into disclosing their credentials. Organizations can mitigate the risk of compromised credentials by implementing strong password policies and two-factor authentication, as well as by training employees to detect and avoid phishing attacks.
Social Engineering
Social engineering was ranked by LookingGlass Cyber and ISACA as the leading type of cybercrime in 2022. Social engineering is a tactic that cybercriminals use to manipulate individuals to disclose sensitive information or perform actions that compromise the security of systems and networks. Social engineering can take various forms including pretexting, baiting, and quid pro quo attacks, which are situations when one party is tricked into believing that they are entering a mutually reciprocal exchange. Organizations can protect themselves against social engineering by conducting regular security awareness training for employees and implementing policies that limit the sharing of sensitive information.
Malware
Malware is malicious software that cybercriminals use to gain unauthorized access to systems and networks or to steal sensitive data. Malware can take various forms, including viruses, trojans, and ransomware. Cybercriminals use different methods to deliver malware, including email attachments, malicious websites, and software vulnerabilities. Data shows that ransomware attacks that allow cybercriminals to hold computers or networks hostage for payments are rising not only in numbers but also in financial and reputational costs to organizations. Businesses can protect themselves from malware by implementing antivirus software and firewalls and by updating software regularly.
Security Vulnerabilities
Cybercriminals often exploit vulnerabilities in software, hardware, and networks to gain unauthorized access to systems and networks or to steal sensitive data. Organizations can mitigate the risk of security vulnerabilities by implementing regular vulnerability assessments, patching systems, and networks regularly, and conducting penetration testing to identify vulnerabilities that attackers can exploit.
Insider Threats
Insider threats are a common cause of data breaches. Insider threats are situations when individuals with authorized access to systems and data intentionally or accidentally expose sensitive information. Businesses in the US encounter about 2,500 internal security breaches daily. Over the last two years, the number has increased by 44%. Insider threats can come from employees, contractors, and third-party vendors. Organizations can protect themselves against insider threats by implementing access control policies, monitoring user activities, and conducting regular security awareness training for employees.
Physical Theft or Loss
Physical theft or loss of devices such as laptops, smartphones, and USB drives can also result in data breaches. The average cost per lost or stolen record is $150. Organizations can protect themselves against physical theft or loss by implementing device encryption, implementing remote wipe capabilities, and implementing policies that restrict the storage of sensitive data on personal devices.
Understanding why data breaches happen can help you prevent data breaches or respond to them effectively should they occur. Get in touch with The AME Group today and discover how our innovative technology solutions can help you safeguard your data. From IT support and cybersecurity to cloud services, we’ve got you covered. Contact us to learn more and schedule your consultation!