Since sensitive information is handled constantly by businesses and individuals worldwide, even a small sign of a data leak can pose significant risks. But what is a data leak? The terms “data leak” and “data breach” are often used interchangeably, but they technically describe different situations.
8 steps to prevent data leaks
- Impose strict access controls.
- Regular updating and patching of the software
- Encrypt data
- Audit and monitor systems
- Train employees
- Secure the cloud environment
- Deploy a DLP solution
- Develop incident response plans
What is the difference between a data leak and a data breach?
The key difference is intent.
A data leak involves sensitive information being let loose into the world, many times via some kind of poor security protocol or human error. It doesn’t need to be set up maliciously. A good example would be a misconfigured cloud storage bucket, which can cause a data leak where sensitive files are accessible with a link to anyone.
A data breach in general would imply unauthorized access to sensitive data through malicious means. A common hacking method is an active intrusion into a network, server, or database using vulnerabilities for stealing, corrupting, or manipulating data.
Regardless of which issue, implementing strong security measures, regularly monitoring for vulnerabilities, and fostering cybersecurity awareness are essential steps in reducing the chances of data leaks or breaches. Prevention is always more effective than dealing with the consequences after the fact.
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How can data leaks happen?
Data leaks are usually accidental and stem from vulnerabilities either in how data is stored or in the manner of sharing. The following are some of the ways data leaks can occur.
Accidental leaks
One of the most common forms of data leakage involves accidental data exposure. A leak in data occurs when sensitive information inadvertently becomes exposed because of employee mistakes, system misconfigurations, or poor security practices. For instance, employees may transfer sensitive data over less secure channels, such as personal email accounts, or store it on unsecured cloud storage platforms.
Cloud misconfigurations
Most often, data leaks occur because some companies fail to properly configure their cloud storage settings, and as a result, databases end up being publicly exposed.
Unpatched software
There will always be patches and vulnerabilities that arise on the software side of a company, and such patches take ample time to get implemented. Once hackers find those weaknesses, they use them to their advantage to gain unauthorized access to systems.
Intentional leaks
The tendency of data leakage is usually perpetrated by insider threats. It normally occurs when internal employees or contractors intentionally expose or steal sensitive information. The motives behind these leaks can be at variance; it could be for financial gain, a need to get even, or even blowing the whistle. Insider threats are usually hard to defend against because the attackers in question already have access to the company’s systems.
Common causes of data breaches
Data breaches are a result of direct, usually targeted, malicious action. Data leaks can lead to breaches because the exposed information may attract attackers.
Phishing
It is the oldest of tricks, which typically promises unsuspecting individuals to disclose sensitive information in return for something that may be done through spam emails or fake websites. The moment an attacker manages to access login credentials or any other useful information from there, they may take advantage of it.
Poor passwords
Poor or weak passwords remain the norm for most users. An attacker uses automated applications or tools to “brute-force” an account with a common password with which he can infiltrate sensitive systems or personal information.
What does a data breach target?
Information targeted for breach usually depends on the goals of the attackers. Most of the information targeted includes:
PII (Personally Identifiable Information)
Information like Social Security numbers, addresses, telephone numbers, and dates of birth, which have monetary values on the black market or are used in identity theft.
Financial information
Credit card numbers along with bank account information and a history of all transactions made, since this is what is normally sought after for fraudulent financial transactions.
Intellectual property
Businesses’ proprietary information, which, if gained by a competitor, would be a great tool in their hands. It can range from product blueprints to sensitive contracts.
Log-in credentials
Most of the time, in cyberattacks, after getting usernames and passwords, the cyber attackers hack into more secure systems or sell them to others to use.
What harm can data leaks and data breaches cause?
Data leaks and data breaches can thus be surrounded by serious consequences both at the individual and organizational levels.
Reputation damage
While the customer entrusts a business with guarding information, this gets smashed into a thousand pieces due to a leak. The result is lost business in the long run and damaged reputations.
Financial loss
Besides heavy fines for non-compliance with data protection legislation, companies are usually involved in heavy spending on damage control and restoration. The average cost of a data breach runs into millions of dollars.
Legal consequences
Nowadays, most developed countries have very strict data protection laws, such as but not limited to the GDPR in Europe. In that case, where a breach has occurred, lawsuits against the company may be filed, and it might even be held liable to pay unprecedented penalties if its security measures are found to be inadequate.
Business disruption
Organizations are normally forced to shut down systems or services in the course of an investigation. Because of this factor, there is usually a loss of time and revenue when systems are shut down for investigation after most breaches.
Government regulations for preventing data leakage
Data protection regulations have been imposed by governments all around the world due to the increased frequency and seriousness of data breaches, making businesses take responsibility for personal information security.
GDPR (General Data Protection Regulation)
The GDPR is one of the broadest data protection laws to date, taking effect in 2018. This applies to any company processing data of EU citizens, even when the company is based outside Europe.
Under GDPR, companies could take measures to protect personal data by encrypting sensitive information, conducting periodic security tests, and informing customers if their data has been compromised.
In GDPR, one important concept is that the right to erasure allows citizens to demand that companies erase their personal details. That would ensure the undertaking of some big overhauls in how corporations handle data and the security of it.
CCPA (California Consumer Privacy Act)
Similarly, the CCPA protects California residents in the U.S. by allowing them to request a disclosure of what personal data is collected on them, with the right to opt out of the sale. The CCPA has led a charge in making awareness of data protection prominent in the U.S., forcing businesses to strengthen their security to avoid heavy fines.
Data residency laws
In-country regulations combine with overarching regulations, where some countries have data residency laws requiring certain types of data to remain stored within national borders.
All countries have different stances on the issue. For example, both China and Russia have very strict data residency laws that keep companies from holding citizen data on foreign servers. This helps prevent data from leaking into jurisdictions where it could fall under less blatant security measures.
In response to growing global data privacy concerns, Verimatrix has attained many industry-recognized certifications to further demonstrate our commitment to the security and integrity of our clients’ apps. Check out the full list.
How to avoid data leaks
It requires best practices, proactive security measures, and a security culture within the organization to make sure data leakage does not take place. Here is how you can reduce the risk of data exposure for your organization:
- Impose strict access controls.
The easiest yet valid methods of access control are making sure those who shouldn’t have access don’t. Employ the use of tools like RBAC to display and edit functions to only a few. For instance, sensitive human resource information shouldn’t be left open for viewing by a whole team.
- Regular updating and patching of the software
Your application software should be updated: unpatched vulnerabilities rank high on entry points that invite attacks. First prioritize critical updates, then arrange for the automatic management of patches where this is feasible in your organization.
- Encryption of data
To add to security, sensitive data should be encrypted both at rest and in transit. Anything that might have been leaked out, even if it fell into the wrong hands, would be rendered useless to them.
- Audit and monitor systems.
Allow for constant monitoring of anything that could appear suspicious; it might just be a leak or other types of data breach. Set up alerts for unauthorized access or great volumes of data in transmission, along with any other anomalous traffic on the network. Regular audits provide confidence that your security policies and infrastructure are working as they should.
- Training of employees
Human error is one of the most significant contributors to leaks. In that respect, your employees would need periodic training in the best habits concerning security, awareness of phishing, and the use of secure passwords. Design a security-oriented culture that guides employees in the proper handling of sensitive data.
- Secure the cloud environment.
Although most enterprises nowadays have moved to cloud storage, very few take the proper steps to secure them. Therefore, configuration for the right infrastructure and sensitive data encryption in the cloud are vital, ensuring that only authorized users gain access to such data. One can use solutions for cloud security posture management (CSPM). These are security solutions that monitor and secure the cloud environments 24/7.
- Deploy a DLP solution.
Data loss prevention (DLP) solutions monitor sensitive data flows within an organization and eliminate information leakage. It can detect the possible leaks itself and block any unauthorized attempt at data transfer outside of allowed channels.
- Develop incident response plans.
What will help in containing the leak of data is a well-planned incident response plan. This should include isolating compromised systems, assessing the extent of the leak, notifying affected individuals, and informing relevant regulatory bodies. Of equal importance is an appropriate team that has been trained to handle the situation to minimize reputational and financial damage with the speed of execution.
Conclusion
In today’s world, data can be taken as one of the biggest assets, and it’s paramount to understand exactly what a data leak is and how prevention may be performed. A data leak is not necessarily associated with malicious activities; however, it is capable of unleashing havoc on both an individual and organizational level.
Proper security, monitoring of vulnerabilities, and performance of cybersecurity awareness are ways to minimize the risk of data breaches or leaks. Of course, it is far easier to prevent than to cure. Invest in app security today to protect your business and customers from threats looming tomorrow.
