Data breaches continue to be on the rise with businesses in the health service provider, finance, insurance, and retail sectors being targeted. If your business doesn’t have a data security strategy, keep reading as we cover what data security is, why you need it, and how a data breach can occur as well as what to do if this happens. Of course, we’ll also be looking at how our Ballarat MSP can help businesses in regional Victoria build their defences to prevent breaches altogether. For now, let’s start with the basics.
What Is Data Security?
This practice involves proactive measures to ensure your data remains secure and protected against internal risks including human error, and external threats including cyber attacks. Data security harnesses tools to provide heightened visibility of data and insights into its use, ensuring you can identify threats and prevent information from being changed, lost, or stolen. It should encompass your business’ hardware, software, devices, and more, and can be implemented and maintained through practices including data encryption, masking, backups, and erasure when it’s no longer required.
Data security strategies use a range of tools and can include solutions such as:
- Access controls
- Email security
- Password hygiene
- Cloud data security
- Data loss prevention
- Zero Trust security
Why Is Data Security Important?
Australian businesses currently have a 30% chance of experiencing a data breach. Resulting in costly financial loss that can span several years and significant reputational damage affecting existing and future customers, data security isn’t a practice you should neglect. Alongside reducing the risk of a data breach, it’s a practice that supports compliance and saves money (in the case of a data breach, financial loss can include paying regulatory fines and for reactive technical support to remedy the situation), whilst reducing downtime and customer churn.
A key aspect of this process is protecting your business’ sensitive information and your customers’ Personal Identifiable Information (PII) which can include their name, driver’s license, address, financial or medical information, and more. When this information is involved in a data breach, it leaves the affected individuals vulnerable to identity theft and financial fraud.
How Can a Data Breach Occur?
Data breaches can be caused by insider threats, as the result of a cyber attack, or when unlocked and unencrypted devices (such as a laptop or hard drive) are lost.
Insider threats:
Insider threats can be malicious or occur because of human error. Malicious insider threats involve individuals (such as employees) accessing, sharing, or selling information with the aim of harming your business.
Cyber attacks:
Data breaches can occur as the result of a targeted cyber attack, where hackers typically use phishing emails, malware (including ransomware), and brute force attacks to gain access to a business’ data. Of course, system vulnerabilities and risks can also contribute to the success of a data breach.
Steps To Take If There’s Been a Data Breach
If there has been a data breach, businesses should take the following steps:
- Containing the breach, reducing the risk of more data being accessed or shared.
- Assessing the situation, including identifying risks and deciding whether affected individuals need to be informed.
- Reviewing the data breach to identify how it happened before implementing relevant security measures to reduce the risk of a future incident.
If your business is covered by the Privacy Act 1988, you must notify affected individuals and the Office of the Australian Information Commissioner (OAIC) of the data breach if the incident could result in serious harm (in compliance with the Notifiable Data Breaches scheme). Communication with affected individuals should also provide recommended actions to take including steps to strengthen their cyber resilience. Only some small businesses are covered by the Privacy Act, including private sector health service providers (you can find the full list of small businesses covered here).
How Our Nerd Herd Can Help Ballarat Businesses
Cyber threats continue to rise – don’t leave your data vulnerable and risk your business’ reputation. The best way to avoid a data breach is implementing proactive measures, and if you’re a local business our Ballarat-based MSP is ready to help! Get in touch with our team here to learn how we can create and maintain a data security strategy to reduce the risk of a successful breach and the long term consequences.