Data leaks happen! Mistakes by employees, phishing attacks and weak passwords can expose your data and result in severe consequences. Learn the hidden dangers of data leaks and how to prevent costly breaches.
Experiencing a data leak is a terrifying prospect that most security teams dread.
With technology more sophisticated than ever (and becoming more sophisticated still), hackers are finding new ways to exploit vulnerabilities and expose data for their own financial gain or simply for the satisfaction of saying they could do it.
Protecting yourself against data leaks should be one of your biggest concerns, otherwise you could be facing catastrophic consequences for years to come.
A data leak occurs when sensitive data is exposed to those who shouldn’t have access to it.
It’s often not intentional; rather than a data breach where malicious actors may hack into a system, data leaks can occur as a result of negligent employees not securing information in the correct way.
However, if a data leak happens, it can lead to a data breach if sensitive information gets into the wrong hands.
As if it’s not bad enough having your data stolen or leaked in the first instance, there can be more damage you’ll have to deal with, including:
When many people think of data leaks, they think of the financial impact to the business, which could be devastating.
T-Mobile, who have recently suffered their second data breach of 2023, said it may ‘incur significant expenses’ as a result. The breach saw PINS, phone numbers and full names of customers exposed, which also leaves them in a vulnerable state.
Remember that companies complying with regulations such as GDPR will also have to pay up to 20 million euros or 4% of their global turnover - whichever is higher - if their business is hit by a data leak.
A 2019 Aon report found that reputational damage is the no. 1 risk to businesses after a cyber attack, due to the lasting impact it can have on the company.
Within the report, they cited Capital One’s data breach that incurred a loss of 6% on the company’s share price, showing the decline in confidence for the brand.
In Deloitte’s ‘Beneath the Surface of a Cyber Attack’ report, the huge impact on the loss of trade was revealed.
The devaluation of their trade name cost a health insurer $230m and lasted for 5 years after the incident, as customers chose to put their cash with competitors. It’s important to keep in mind that the impact of a cyber attack is unlikely to go away quickly.
Within the same report, a US technology manufacturer experienced disruption to business following a data leak that cost them a massive $1.2billion as sales were halted and their security features were put under the microscope.
Afraid that a competitor might have stolen their IP, they re-evaluated 15 product lines, slowing them down even more when it came to turning a profit.
If a company holds PII (Personally Identifiable Information), and that data is leaked, it may not just be the company that feels the effect.
A customer could have their data stolen and sold on the dark web, resulting in identity theft or fraud. This can have financial implications, as well as emotional and psychological consequences too.
As well as dealing with financial and reputational damage, you may have a lawsuit brought against you by an official body, or individuals who have had their data leaked.
This is particularly apparent when companies fail to disclose the details of the data leak within the allotted time, and try to cover it up instead. It’s always best to be honest from the get-go with these things, and work with authorities to figure out what went wrong.
Data leaks can happen in a number of ways, not all of them from a malicious perspective. Here are the most commons causes:
If sensitive documents aren’t managed properly, you can end up giving access to too many people, which maximises the chance of data being leaked.
You should ensure the tightest access controls are in place to lock down your most sensitive data. You might even want to consider using a zero-trust model to take a least privilege approach, and put the most protections in place.
Social engineering attacks are becoming more sophisticated all the time. Hackers can pose as managers, IT teams, or even the CEO, to trick employees into sharing sensitive information.
The only way you can get around this is to train your staff effectively to spot social engineering attempts. That could take the form of practice runs to see whether your team can identify a genuine request or a social engineering attack.
Around 80% of data breaches can be linked back to weak login details, meaning they could have been prevented if employees had tightened up their security credentials.
To discourage the use of easy-to-guess passwords, you should make sure your employees are using password managers such as 1Password. This can help them see that they don’t have to use the most memorable passwords as they’ll have everything stored in the password manager instead.
Malicious software can be downloaded onto an employee’s computer easily if they open any dodgy websites, or click on any suspicious links in emails. Hackers could use this method to deploy malware to infect your cloud environment, and any computers connected to it, giving them access to your data.
Again, you’ll need to let your team know the dangers that malware can pose, and how they can avoid being affected by it.
The threat of data leaks doesn’t always come from the outside. Disgruntled employees can pose an insider threat to your business, particularly if they have access to sensitive data. If they have malicious intentions, they can leak your most confidential data easily. This is where tightening your access controls can come into play effectively, as you can minimise their ability to access sensitive information.
Take care to look for anomalous behaviours such as employees attempting to share documents to external parties, or downloading sensitive documents that could pose a threat to your business.
Minimising the chances of user errors occurring is key, when it comes to reducing the chance of data leaks. Some studies show a jaw-dropping 95% of data breaches are the result of human error. For example, one of your employees might fall victim to a phishing attack, putting your entire business at risk.
Our fireside chat with Susan Richards, VP of InfoSec at Tend, explored the profound impact that employees at all levels, have on an organisation's data security posture. While technological safeguards such as firewalls and encryption remain essential, they are only part of the defence strategy. It's the human factor, with its capabilities and limitations, that often determines the success or failure of data security measures.
To prevent data leaks from happening, building your human firewall should be your top priority, ensuring your employees are aware of potential threats and how to handle them.
If tools are not set up correctly from the off, it can leave data exposed. For instance, if your Notion pages are published to the web, and accessible to anyone on the internet, you’re putting your sensitive data at risk.
Not only that but competitors will also be able to see your latest plans, or revenue targets - a chance you don’t want to take.
While a lot of data lives in the cloud these days, there are still the physical elements of security that can’t be ignored.
Whether it’s a dodgy USB or stolen devices, sensitive data can be leaked from physical attacks so you should let your team know how to keep their devices safe. For instance, don’t leave it in the car overnight or make sure it’s locked away in a desk.
Employees are using unapproved apps to get things done quickly, but this can often be done behind the backs of security teams who are unaware of the apps being used. This means the correct protections can’t be put in place, and sensitive data can be shared across insecure devices.
Shadow IT can also be an issue if employees are using their own devices rather than company ones, as the correct firewalls may not be in place.
When employees leave a business, they can leave behind many files that contain plans, stats, and data that could prove useful to a bad actor. To avoid old data building up, and minimise the data in your SaaS apps, you should delete data that is no longer needed, and remove permissions to files they no longer need access to.
There are a few ways you can prevent data leaks and it starts by being proactive, rather than reactive.
Implement strict access controls to ensure that only authorised individuals can access sensitive data. This involves user authentication, role-based access, and continuous monitoring of data inventory and user activities.
Taking a holistic approach to data security can be hugely beneficial for encompassing every potential avenue of data leakage. A DSPM tool like Metomic can help businesses to ensure their data is secured from many different angles, including from insider threats, while using data minimisation techniques to reduce the company’s attack surface when it comes to data breaches.
Having a strong data security posture in place is an ongoing task, and your strategy should be reviewed and updated regularly to deal with emerging threats.
Whether accidentally or maliciously, the truth is that human error is responsible for 95% of cybersecurity incidents. Disgruntled employees may leak information about the company, giving rivals a competitive advantage, while those who are trying to work with limited resources may store sensitive data in insecure locations while trying to be more efficient, leading to data leaks.
Educating employees and continuously monitoring your environment can help you spot potential threats before they go too far.
Minimising the amount of data you store by using a data security software like Metomic is crucial for reducing your attack surface, as well as helping you comply with regulations such as GDPR. It redacts information on autopilot, without getting in the way of your employees. That way, if you are exposed to a data leak, the amount of data exposed will be minimal.
You can’t protect what you can’t see. Sensitive data discovery is a crucial aspect of a strong data security posture, helping you understand where sensitive data lives, and who has access to it.
Metomic gives security teams full visibility over sensitive data stored in SaaS environments and GenAI tools, so that they can lock down their data, without getting in the way of employees doing their jobs.
If you’re looking to minimise the risks of data leaks as much as possible, Metomic might be the perfect solution for you. Book a personalised demo with one of our security experts to find out more.