The last thing you want to worry about when running a business is the idea of a cyber breach. Even more so, it’s a headache to think about the possible aftermath. Since sensitive information in the wrong hands can be used to cause a lot of harm, businesses are now responsible for protecting their staff and customers from this risk.
Say your company was a victim of a cyber-attack. What then? How would you proceed, and what are some aftereffects to expect? One of the most resounding questions you may have is whether your business can be sued for a cyber breach.
Types of Cyber Breaches
Data can be stolen in many ways. Ransomware refers to when criminals steal sensitive data and hold it hostage, demanding a payout to not release it to the public. This tactic can make for a very dicey situation, especially when information like HIPAA-protected patient records or legal documents are compromised.
The dark web is another risk to data security, and you may already be a victim without realizing it. The growing business of cybercrime results in the buying and selling of stolen data between cyber criminals.
Types of Data Hackers Target
The type of stolen data matters, too. If cyber criminals get a hold of sensitive information, they can wreak havoc on their victims. Reputations, bank accounts, and livelihoods can be destroyed by leaked information. This is why cybercriminals will target online records, including:
- social security numbers
- financial statements
- protected legal documents
- Credit card numbers, PINS, and other payment information
- HIPAA-protected health records
Hackers target this data to gain leverage over their victims. The prospect of cleaning up after a leaked data incident often motivates business leaders to give in and pay ransoms.
What Issues Lead To Data Leaks
Oftentimes, there will be a cyber investigation to reveal what went wrong to allow cyber criminals into your network to access information. Other times, information is mishandled and revealed by a staff member, which is grounds for facing legal retribution. Issues that can lead to data leaks include:
- Lack of cyber security training for staff
- No means of adequate user verification, such as mutli-factor authentication (MFA)
- Weak passwords that aren’t changed often
- Lack of encryption/weak network security
- Outdated malware detection and response technology
Legal Risks of Data Breaches
As is to be expected, when legally protected data is compromised, patients, clients, customers and even state or local governments will sometimes take legal action. This can cost hundreds of thousands and sometimes millions of dollars to resolve. Having a legal action plan can make or break how quickly you resolve these legal troubles.
Every US state has laws about how quickly you must notify affected parties of data breaches. After a leak, you can also face legal troubles if evidence is disposed of before investigations can get underway.
For example, the New York State Attorney General recently issued a fine of over $300k to a New York-based home healthcare company after an investigation revealed poor cybersecurity safeguards that compromised hundreds of thousands of records.
It's also not uncommon for class-action lawsuits to result from large-scale data breaches. If you don’t get ahead of your cybersecurity, your business could face a money drain for years to come after a costly breach.
Non-Financial Ramifications
Class-action lawsuits and government fines aren’t your only woes if you’re a victim of a cyber attack. After breaches occur, they can end up as damaging headlines that can harm businesses by deterring customers. The trust you’ve worked hard to build with your customers, vendors, and other parties will be on the line, which can be hard to earn back.
The time involved in cleaning up a mess is always longer than it took to make the mess. What could have been mitigated by stronger cybersecurity might take years to fix.
Recovering from a Breach
If you’re unlucky enough to be a victim of a cyber attack, you should know how to handle it. If data is leaked, you should immediately seek third-party help to assess how many records have been compromised, who is affected, and other details. For example, there are professionals that specialize in cyber attack negotiation like in the case of ransomware. It’s also wise to seek out IT services to handle your cybersecurity for the future.
Cyber Insurance Policies
One proactive measure companies are opting for is cyber insurance. Although it’s not a catch-all solution to cyber breaches, but it can help with legal costs and other expenses that can follow an attack. Cyber insurance companies will have you fill out a cyber insurance questionnaire to qualify for a policy. This is designed to determine how at-risk your business is for a cyber attack. From there, a cyber insurance broker will accept or deny your application, depending on if you meet minimum security requirements.
Since an uptick in cyberattacks in recent years, the cyber insurance market has grown and changed with the advancement of cybercrime. To learn how to qualify for cyber insurance in today’s market, check out our article: “How Have Cyber Insurance Requirements Changed Since COVID-19?”
How To Prevent Data Breaches
It’s best to practice proactive cybersecurity rather than reactionary measures when you’re already a victim. Here are a few steps you can take now to reduce your risk of becoming a victim.
1. MFA
A relatively simple user verification method is multi-factor authentication (MFA). This will require users to connect a secondary method of verification such as a personal cell phone number or security app. This will look like the verification codes that most apps and emails require. This is a simple way to make sure those who are signing in are verified users, and it is a solid roadblock to cyber criminals trying to breach user accounts.
2. Staff Training
Another best cybersecurity best practice is to conduct regular staff training on topics such as phishing and malware risks. The most significant risk to your cybersecurity is human error, and although this cannot be eliminated, it can be mitigated by teaching your staff how to spot and avoid scams. This training can go a long way, empowering employees to look for and report suspicious emails, links, and more to your IT team. To learn more about training staff about cybersecurity, read our blog: “Top 6 Email Security Tips for Employees.”
3. Strong Passwords and Frequent Resets
An easy way to safeguard your user accounts and other assets is by using strong passwords. These should have many characters, including symbols, hard-to-guess numerical patterns, and any other attributes outlined by your IT provider. They should also be changed often and unique from passwords from other services. This is because a breach in one account or platform could lead to multiple if a user’s credentials are reused.
4. Zero Trust Security Framework
These are best practices for cybersecurity, and a managed cybersecurity provider can help you learn about zero trust principles. Zero Trust is a cybersecurity framework that assumes every user or program is a threat unless explicitly approved by your IT team. Ask your IT provider about zero trust training to ensure your staff understands why they need approval before downloading some programs.
Outsourced Cybersecurity Services
Rather than wait until you’re in a tough spot to invest in cybersecurity, a great way to fight back against cybercrime is by investing in outsourced IT help. A managed security service provider (MSSP) will assess your current cybersecurity tools and defenses, or lack thereof. Then, they’ll recommend how to secure your network to reduce the risk of another breach.
Find Out If Your Data is Already on the Dark Web Through an IT Provider
Sometimes, MSSPs will provide free dark web scans. This is a method of discovering if your sensitive data has been compromised on the dark web. These will demonstrate how risky it is to have inadequate cybersecurity. Cybercriminals can easily breach your network if stolen assets are readily available on dark web forums, so dark web scans are a powerful tool to gauge your current risk.
To learn more about dark web scans, check out our article: “How to Tell If Your Data Has Been Leaked to The Dark Web”. If you’re interested in finding out if your data is already on the dark web, click the button below to get a free scan for your business.
