The Effect a Data Breach Can Have on an Organization

Data is the most valuable currency in circulation around the world. From legal big data conglomerates to shady dark web dealings, our data is everywhere, and malicious actors will go to great lengths to access and monetize large pools of sensitive information. In this article, we take a look at the full range of effects a data breach can have on an organization.

Establishing a comprehensive cybersecurity strategy will mitigate vulnerabilities in your systems, equip you with state-of-the-art cyber defense, and grants you access to an entire team of cybersecurity professionals who can swiftly identify, isolate, and respond to cyber threats and data breaches in your system.

A data breach can happen anywhere in your network and at any time. With such a large percentage of the workforce operating remotely, organizations need to be able to defend their network no matter where their staff is. Prioritize cybersecurity everywhere and anywhere with DOT Security’s Cybersecurity Checklist for When You’re on the Go.

What Is a Data Breach?

Before we talk about the effects of a data breach on an organization or small business, it’s crucial to understand what a data breach is.

A data breach is defined as: The unauthorized access and possession of sensitive, personal, or private information. In regard to cybercrime, the data breach often stems from malware, social engineering scams (like phishing emails), or malicious users navigating and exploiting technical vulnerabilities present in the network.

Needless to say, data breaches are bad. It means people who shouldn’t be accessing your data are doing so freely, and often times without detection.

For instance, the United States Patent and Trademark Office (USPTO) was the victim of a three-year-long data breach. The breach, which began in February 2020 and wasn't patched until March 2023, resulted in the exposure of over 61,000 patent applicant private residential addresses. While the USPTO has acknowledged the breach and claims no data was misused, you can imagine the devastation this type of lengthy breach could have on an organization.

How Do Data Breaches Happen?

A data breach can occur in several ways, so organizational leaders and decision makers need cybersecurity policies in place that protect them from all directions.

Three of the core data breach cyberattacks criminals mount come in the form of malware, network vulnerability exploitation, and social engineering.

Malware is malicious software that, once activated, infests your network effectively halting operations, corrupts or encrypts your most sensitive files, and often produces a ransom note – this specific type of malware is also called ransomware. Other forms of malware, however, are strictly designed to spy on your network and steal both company and staff information.

Network vulnerabilities can be exploited by savvy hackers, and the more outdated your software, network, or systems, the more vulnerable you are. An immediate example of network vulnerability exploitation comes to us from WordPress and their popular plug-in Ultimate Member.

Malicious users found a backdoor in the Ultimate Member plug-in that allowed them to infiltrate websites, create shadow administrator accounts, and then effectively usurp control over the entire site.

Social engineering scams are probably the cyberattack you’re most familiar with already. Phishing emails that aim to dupe staff members into compromising their credentials give malicious users the key they need to get into your systems. From there, they can navigate almost undetected and wreak havoc on your network.

The Effects of a Data Breach

The effects of a data breach somewhat depend on the extent of the breach. Critical factors include the duration of the breach, the information accessed, and the type of the cyberattack itself.

In the instance of a malware attack that shuts down your systems, the effects of the data breach could mean significant downtime, which is problematic for a few reasons. Firstly, downtime is a costly expense at $5,600/minute on average. Secondly, downtime can also impact your brand reputation and standing with current consumers.

In the event that your systems get hit by ransomware, the effects of the data breach could be far worse, losing access to vital files, an inordinate ransom, and again, consumers losing trust in your brand and your ability to keep their information protected.

Without a comprehensive cybersecurity strategy in place, a data breach can be detrimental for an organization.

Preventing a Data Breach in Your Organization

Unfortunately for cybersecurity professionals and business owners alike, there’s no universal defense program that guarantees 100% protection against cyberattacks. However, there are ways in which organizations can amp up their cyber defense and greatly reduce their cybercrime risk.

Partnering with a managed security services provider (MSSP) is one way to greatly mitigate cybercrime risk, without dedicating the energy and resources into hiring an entire cybersecurity team in-house.

MSSPs give you access to an entire fleet of veteran cybersecurity professionals, 24/7 network monitoring, and state of the art cybersecurity hardware and software.

Additionally, organizations can write up a comprehensive cybersecurity strategy, implement device management policies, and even enforce regular cybersecurity trainings to keep staff educated on current cyberthreats.

Wrapping Up on the Effects of a Data Breach

No one is 100% protected from cyberthreats. However, those with more robust defense systems in place, modernized cybersecurity strategies, and security-literate staff members are much harder to penetrate for malicious users. Because hacking is often a speed game, the harder your system is to crack, the more likely cybercriminals are to look for easier prey elsewhere.

By partnering with an MSSP like DOT Security, your organization will be outfitted with the best cybersecurity technology on the market utilized by veteran cybersecurity professionals who are here to keep your systems safe at all times.

Cybercriminals are waiting for the perfect opportunity to pounce. Don’t give them the chance when you’re traveling. Keep your staff, data, and network safe in any case and anywhere by reviewing DOT Security’s Cybersecurity Checklist for When You’re on the Go.