What is a data breach?

A data breach refers to the unauthorized disclosure of confidential, private, or sensitive information into an insecure environment. It can happen either by accident or as a deliberate act.

Each year, data breaches impact millions of individuals, encompassing a wide range of scenarios. These can range from instances like a doctor mistakenly accessing the medical records of the wrong patient to large-scale attempts to breach government computer systems in order to obtain classified information.

The significance of data breaches stems from the constant transmission of sensitive data over the internet. With information being continually exchanged, attackers from anywhere can target almost anyone or any organization for data breaches.

Moreover, businesses worldwide store data in digital format, exposing them to potential cyber threats. The servers housing this data often possess vulnerabilities that leave them susceptible to various forms of cyber attacks.

Who is typically targeted for data breaches?

Attackers are consistently drawn to major corporations as they present lucrative opportunities for data breaches. These organizations possess a significant payload, consisting of vast amounts of personal and financial data belonging to millions of users. This valuable information encompasses login credentials, credit card numbers, and other sensitive details, all of which can be easily sold on underground markets.

Nevertheless, attackers are not limited to major corporations alone. They pursue any potential target from whom they can extract data. Cyber criminals recognize the inherent value of all personal and confidential information and are usually able to find buyers for such data somewhere in the world.

What are some of the main ways a data breach can occur?

• Illicit Acquisition of Login Credentials: One of the easiest ways to gain unauthorized access to private data online is by utilizing stolen or lost login credentials from unsuspecting users. Attackers employ various techniques such as brute force attacks and on-path attacks to obtain these credentials.

• Loss or Theft of Devices: When a computer or smartphone containing sensitive information is lost or stolen, it poses a significant threat if it falls into the wrong hands. The unauthorized individual can potentially exploit the confidential data stored on the device.

• Social Engineering Attacks: Social engineering involves the manipulation of individuals through psychological tactics to deceive them into revealing sensitive information. For instance, an attacker might impersonate an IRS agent and contact victims over the phone to trick them into divulging their bank account details.

• Insider Threats: Insider threats arise when individuals who have authorized access to protected information deliberately expose or misuse that data for personal gain. Examples include restaurant servers illicitly copying customers’ credit card numbers or high-level government employees selling classified information to foreign entities.

• Exploitation of Software Vulnerabilities: Virtually every company employs a variety of software products, which can contain flaws called “vulnerabilities” due to their complexity. Attackers exploit these vulnerabilities to gain unauthorized access and view or copy confidential data.

• Malware Infections: Malicious software programs are designed to surreptitiously steal data or monitor user activities, transmitting the acquired information to servers controlled by attackers.

• Physical Point-of-Sale Attacks: These attacks specifically target credit and debit card information and frequently involve tampering with card-scanning devices. For example, attackers might install counterfeit ATM machines or attach scanners to legitimate ones in an attempt to collect card numbers and PINs.

• Credential Stuffing: Following a data breach, attackers may attempt to reuse exposed login credentials on multiple platforms. If victims employ the same username and password combination across various services, the attacker can gain unauthorized access to their email, social media, and online banking accounts.

• Lack of Encryption: Websites that collect personal or financial data but fail to employ SSL/TLS encryption are vulnerable to eavesdropping. Any individual monitoring the data transmissions between the user and the website can view the information in plaintext.

• Misconfigured Web Applications or Servers: Improperly configured websites, applications, or web servers can inadvertently expose data to anyone with an internet connection. Confidential information may be accessible to both unintentional users stumbling upon it and attackers deliberately seeking it out.

What does a real-world data breach look like?

The Equifax data breach in 2017 serves as a prominent example of a large-scale data breach. Equifax, an American credit bureau, experienced a security breach between May and June 2017. During this incident, malicious actors gained unauthorized access to private records stored on Equifax’s servers, compromising the personal information of nearly 150 million Americans, around 15 million British citizens, and approximately 19,000 Canadian citizens. This breach occurred due to Equifax’s failure to apply a software patch that would have addressed a vulnerability in their system.

Data breaches on a smaller scale can also have significant repercussions. In 2020, attackers successfully hijacked the Twitter accounts of numerous well-known and influential individuals. This attack was made possible through an initial social engineering tactic that allowed the attackers to gain access to Twitter’s internal administrative tools. Exploiting this initial breach, the attackers proceeded to take control of multiple accounts, promoting a scam that resulted in the collection of approximately $117,000 worth of Bitcoin.

One of the most infamous data breaches in recent history occurred in 2013, targeting the major retailer Target. This cyber attack employed a combination of sophisticated strategies. The perpetrators executed a social engineering scheme, compromised a third-party vendor, and carried out a large-scale assault on physical point-of-sale devices.

The attack commenced with a phishing scam aimed at employees of an air-conditioning company responsible for supplying AC units to Target stores. These air conditioners were connected to computers within Target’s network to monitor energy usage. By compromising the air-conditioning company’s software, the attackers gained entry into the Target system. Subsequently, they reprogrammed credit card scanners in Target stores to obtain customer credit card data. Although these scanners were not connected to the Internet, they were programmed to periodically transfer stored credit card information to an access point monitored by the attackers. The attack proved successful, resulting in an estimated 110 million Target customers having their data compromised.

How can businesses prevent data breaches?

Given the evolving nature of data breaches, it is crucial to adopt a comprehensive approach rather than relying on a single solution. Businesses can implement the following key measures to mitigate the risk of data breaches:

• Implement Access Control: Employers should ensure that employees are granted the minimum necessary access and permissions required to perform their tasks. This helps restrict unauthorized access and reduces the potential impact of a breach.

• Utilize Encryption: It is essential for businesses to encrypt their websites and the data they collect using SSL/TLS encryption. Additionally, data at rest, stored on servers or employees’ devices, should be encrypted to enhance its protection.

• Deploy Web Security Solutions: Employing a web application firewall (WAF) can safeguard businesses against various application attacks and vulnerabilities that could lead to data breaches. Notably, a well-configured WAF could have potentially prevented the significant data breach suffered by Equifax in 2017.

• Strengthen Network Security: Alongside securing web properties, businesses must prioritize the protection of their internal networks. This can be achieved through the implementation of firewalls, DDoS protection, secure web gateways, and data loss prevention (DLP) measures, all of which contribute to maintaining network security.

• Maintain Software and Hardware Updates: Outdated software versions pose a significant risk as they often contain vulnerabilities exploitable by attackers. Regularly updating software and hardware, including installing security patches and new versions, is crucial to patch known vulnerabilities. Neglecting these updates, as seen in the Equifax breach, leaves systems vulnerable to exploitation.

• Establish Preparation Measures: Companies should develop a comprehensive response plan to be executed in the event of a data breach. The goal should be to minimize the impact and containment of information leaks. It is advisable to maintain backup copies of important databases to aid in recovery.

• Provide Employee Training: Social engineering attacks remain a prevalent cause of data breaches. Companies should conduct training programs to educate employees on identifying and responding to social engineering attacks effectively.

By adopting a holistic approach that combines these measures, businesses can significantly enhance their defenses against data breaches and protect sensitive information from unauthorized access and exploitation.

How can users protect themselves from data breaches? Here are some recommendations to enhance the protection of your data. While these measures cannot guarantee absolute data security, implementing them can significantly reduce the risk:

Utilize unique passwords for each service: Many individuals reuse passwords across multiple online services, making them vulnerable to data breaches. When one service experiences a breach, attackers can exploit those credentials to compromise other accounts. Using distinct passwords for each service mitigates this risk.

Enable two-factor authentication (2FA): Two-factor authentication enhances security by requiring users to provide multiple verification methods before logging in. The most common form of 2FA involves entering a unique, one-time code sent to the user’s phone, in addition to the password. By implementing 2FA, users make it significantly more challenging for attackers to gain unauthorized access to their accounts.

Only submit personal information on HTTPS websites: Ensure that websites you interact with use SSL encryption, which is denoted by “https://” in the URL instead of just “http://”. Websites lacking encryption expose any data entered, including usernames, passwords, search queries, and credit card numbers. Limiting personal information to HTTPS websites reduces the risk of data exposure.

Keep software and hardware up-to-date: It is crucial to regularly update both software and hardware to protect against known vulnerabilities. This advice applies to individual users as well as businesses. Updates often include security patches that address potential weaknesses and ensure that your systems are equipped with the latest protection.

Encrypt hard drives: Encrypting hard drives is an effective safeguard in case of device theft. Encryption prevents unauthorized access to locally stored files on the stolen device. However, it’s important to note that encryption alone cannot protect against remote attacks, such as those facilitated by malware infections. Therefore, it is vital to implement additional security measures to prevent such incidents.

Install applications and open files only from reputable sources: To avoid inadvertently downloading malware, exercise caution when opening files or installing applications. Ensure that they originate from trusted sources. Additionally, refrain from opening unexpected email attachments, as attackers frequently disguise malware within seemingly harmless files sent via email.

By following these recommendations, you can significantly enhance the security of your data. Remember that data security is an ongoing effort, and staying vigilant is essential in today’s interconnected digital landscape.