This year’s figures indicate the cost of data breaches for businesses are at a record high, often involving millions of pounds. Strict rules established by data regulators here in the UK like the Information Commissioner’s Office (ICO), as well as legislation like the Data Protection Act, are designed to make sure that the data held and handled by companies remains protected. If businesses fail in their duty to take sufficient measures to safeguard this information, regulators have a right to fine them. However, the price paid by businesses when a data leak occurs are often much greater.
In this blog, we’ll take a deep dive into data breaches, explaining how they occur and the costs and associated costs involved. We’ll also explain the most effective way to avoid them. Read on to find out more.
How do data breaches happen?
The two most common causes of data breaches are accidental and malicious. If private data is accidentally emailed or shared with unauthorised individuals, or deleted by mistake, it is considered a breach. Additionally, if a threat operator accesses private data, steals, destroys or alters information, it is also classed as a breach.
What costs can follow a data breach?
As mentioned, data regulators can penalise a company following a breach, especially if they believe it was negligent.
To identify the cause of a breach, companies may need to employ expert help. Outsourcing can be expensive but necessary to gain the expertise required.
Disruptive down time
While a data breach is investigated, normal operations must cease. This downtime can cost companies in terms of productivity, thus reducing income.
To ensure a breach can’t occur again, firms often need to buy an expensive solution to solve vulnerabilities in their system.
If a company discloses a data subject’s confidential information and puts them at risk, compensation may be required. This may involve paying out large sums of money to subjects or covering the cost of protective services that watchdog their accounts, as well as taking steps to safeguard privacy when details like banking and personal information are exposed.
Loss of reputation
Finally, the lasting damage from a data breach can result in a lack of trust and ruin a business’s reputation.
How to avoid the devastation of a data breach
By far the most effective way to save your company from a data breach is to use encryption software. This state-of-the-art solution efficiently scrambles data files and electronic correspondence, ensuring company content can only be viewed by those with correct authorisation. As a result, data is protected from potential breaches and should persistent attackers penetrate the encryption, firms can prove that they did their best to safeguard it and avoid fines dealt by regulators.
Our secure encryption solution at Galaxkey is designed to keep firms compliant with data protection laws. Providing three layers of advanced protection, our encryption is easy to use and approved by the National Cyber Security Centre (NCSC). To test-drive our solution and avoid unwanted data breaches, contact us now for details and a free trial.