For many companies, a significant data breach is a worst-case scenario. However, data breaches are actually incredibly common. According to some sources, cybercriminals can access 93% of businesses in an average of two days. Around 150 million data records were compromised in the third quarter of 2022 alone.
"We have a responsibility to protect your data, and if we can't, then we don't deserve to serve you," said Mark Zuckerberg, CEO of Facebook, following a data breach.
Seeing how common data breaches are, resilient businesses need to have a plan in place should one occur. Here, we're going to go over the ways you can recover and boost your cybersecurity measures after a major data breach. Keep reading for some tips and tricks.
What Causes a Data Breach?
The first step in prevention or recovery will be understanding what causes a data breach in the first place. Some of the most common causes include phishing, ransomware, social engineering scams, software misconfigurations, weak passwords, physical device theft, or third-party breaches. Once you identify how your data was compromised, you can better strategize how to prevent it.
"If you aren't being proactive with cybersecurity, you will get hacked. To be fair, you'll probably deserve it if you're truly negligent," points out Max Schwartzapfel, CMO and Fighting For You lawyer.
Another major vulnerability that companies have is their employees. Careless employees have been responsible for many data breaches throughout time. Some companies even test their employees with fake phishing attempts to keep them alert.
What To Do Immediately Following a Data Breach?
So, you've just learned that your business experienced a data breach. Maybe someone on the inside stole customer information, or a hacker took personal information from your corporate server. Regardless of the type of data breach that occurred, there are several steps you need to take to fix the issues seamlessly and in a timely manner.
"The quickness in which you act following a data breach will determine if you have additional breaches relating to the initial one. The only thing worse than one data breach is multiple data breaches," mentions Patricio Paucar, Co-Founder and Chief Customer Officer of Navi.
The Federal Trade Commission recommends taking three main steps to rectify the situation. First, secure your operations, fix vulnerabilities, and notify the appropriate parties.
Secure Your Operations
The first thing you need to focus on once the data breach occurs is getting your operations secured. Fix the vulnerabilities that may have caused the breach so you don't have another breach occur alongside the first one. You'll want to start by securing physical areas that may have been related.
"Any technology that's connected to the Internet is hackable. You need to take every security measure possible on all channels," advises Amanda Howland, Co-Founder of ElleVet Sciences.
You'll also want to mobilize your breach response team immediately to prevent additional data loss. Once you've taken these initial security measures, you'll want to start interviewing the people who discovered the breach to gather further information.
Assemble a Team of Experts
This will depend on the size of your company, but you could have forensics, legal, information security, IT, HR, investor relations, and management all involved in securing operations. You can also consider hiring an independent team or forensic investigators to help you determine the source and scope of the breach.
"A data breach is an all-hands-on-deck situation. You'll need to work with multiple company departments and your outside team to repair the damage and prevent future attacks," recommends Scott Chaverri, CEO of Mito Red Light.
You also need to talk to your legal counsel. If you need to hire outside counsel with privacy and data security expertise, go ahead and do so. They will help you navigate federal and state laws should they be implicated.
Remove Improper Information
Once your operations are secured, you'll need to work on removing improperly posted information on the web. Start with your website. If the data breach involved personal information posted to your website, you need to remove it immediately. You must also contact search engines to ensure improper information isn't archived.
"The effects of a data breach can be wider reaching than you even realize. Make sure you are scouring the internet for any traces of leaked data," suggests Dakota McDaniels, Chief Product Officer of Pluto, an AI stock trading platform.
Once your website is under control, you can start looking into other places your data may have been exposed. Search for your company's data to see if any other websites have copies. Should you find your data on another website, you'll have to ask them to remove it.
Fix Vulnerabilities
After you've secured your operations and removed improper information from the web, you'll need to start fixing the vulnerabilities that caused the breach in the first place. Start with examining your service providers. If they were involved, rethink what information they have access to. You should also work with them to ensure they are taking steps to remedy their vulnerabilities.
"If you don't fix the problems that caused a data leak in the first place, you better prepare for another," says Jason Zhang, CTO of Tapin.GG, a company that specializes in Valorant boosting.
You need to also check your network segmentation. When you established your network initially, you likely segmented it. Companies do this to prevent breaches from affecting other servers or sites. If you've done this, check the strength of your segmentations.
Work With Forensics Experts
Your forensic team should be able to guide you in your efforts to repair vulnerabilities. They will let you know if measures such as encryption were being used when the breach occurred. You'll want to analyze your backup data and review logs to determine who had access at the time of the breach.
"If you need to get professionals involved to help clean up the problems after a data leak, don't hesitate to do so. You may need all the help you can get," points out Jeremy Stanton, President and CEO of Haven House Addiction Treatment.
Work with forensics to make a list of all the people who currently have access to your data. Once you've made a list, determine if everyone needs to have access. If you have people with unnecessary access, start restricting accordingly.
Notify Appropriate Parties
An important part of the procedure following a data breach is to notify all appropriate parties of the damage that occurred. You'll want to know the legality surrounding who exactly requires notification about the breach. All U.S. states and territories have enacted legislation requiring notification, so check both state and federal laws.
"It is not only unethical but also illegal to keep a data breach to yourself. You need to notify all affected parties in your post-data-leak procedure," mentions Max Ade, CEO of Pickleheads.
Depending on the nature of your data breach, additional laws and regulations may apply to your situation. Work closely with your legal team to ensure you are taking all necessary steps.
Notify Law Enforcement
You should report the data breach to your local police department as soon as the breach occurs. Tell them about the specifics of your situation and if there are any potential risks for identity theft. The sooner you notify law enforcement, the more diligent they can be about decreasing security risks.
"Make sure your local law enforcement is equipped to deal with the scope of your data breach. If they aren't used to dealing with cybersecurity issues, you'll need to go higher," says Seth Besse, CEO of Undivided.
Not all police forces are going to be familiar with information compromises. If this is the case, contact the local office of the FBI or the U.S. Secret Service. If your incident involves mail theft, the U.S. Postal Inspection Service should also be alerted.
If Health Records Were Involved
If the data breach involved electronic personal health records, you need to check if you're covered by the Health Breach Notification Rule. If you are, you need to notify the FTC. You also need to determine if your situation warrants getting the media involved.
"You never want to be involved in health records being compromised. This is the most concerning type of data leak and involves the most diligent response," maintains Andrew Mavis, CEO of 98Strong.
Data breaches involving health records need to be handled with extra caution. You need to also check if the HIPAA Breach Notification Rule covers you. This warrants the notification of the Secretary of the U.S. Department of Health and Human Services.
Recovering From a Data Breach
Few companies plan to be at the center of a major data breach incident. However, it is something all companies need to be prepared for. A company's response to a data breach can have significant impacts on its liability, reputation, and business continuity.
"If you put a key under the mat for the cops, a burglar can find it, too. Criminals are using every technology tool at their disposal to hack into people's accounts. If they know there's a key hidden somewhere, they won't stop until they find it," says Tim Cook, Apple's CEO.
Potential data breaches and leaks are far more common than many companies realize. Take all the necessary steps to protect your data, and prepare for the worst-case scenario to increase the longevity of your business.
