6 Important Tactics to Lower the Cost of a Data Breach for Your Business

6 Important Tactics to Lower the Cost of a Data Breach for Your Business

Reducing the cost of a data breach is a vital consideration for good security protocol. As the number of data breach incidents increases, the need for cybersecurity for business owners and their consumers is also increasing. 

A data breach is a major concern for both small-scale and large-scale businesses. According to a report, around 45% of American firms suffer from data breaches. The report also affirms that the number might be higher as many data breaches remain undetected. 

When a data breach occurs, it causes the business a lot of financial stress. The cost of a data breach includes investigating its cause, which costs a lot financially, notification costs, legal defense costs, and the cost to repair the breach. To combat a data breach, some tactics need to be considered. However, it is also essential to know what a data breach is.

What Is a Data Breach?

A data breach is a cyber-attack whereby sensitive and confidential information is accessed through unauthorized means. Common data breaches include exposing personal information such as credit card numbers, social security numbers, corporate information such as trade secrets, and other companies’ confidential data. 

When an unauthorized third party gains access to this information by any means, the company has been breached. If the breach results in a violation of civil rights or identity theft, the offending corporation may face a fine or litigation. 

Important Tactics to Lower the Cost of Data Breaches

The tactics below are recommended to prevent a data breach and its consequences:

1. Create a Data Breach Response Team

Developing a breach preparedness plan allows both the employer and the employees of an organization to understand and identify possible damage that a data breach could cause. A timely response is an essential strategy for tackling a data breach. Having an experienced IT team (in-house or external) well-versed in what actions to take when a breach occurs is important in lowering the cost of a data breach.   

2. Use Difficult-to-Decipher Passwords

Using unpredictable and complex passwords is an excellent way to lower the cost of a data breach. Years ago, employers rarely bothered themselves with the type of passwords their employees were using. With the recent incidents of cyber breaches, there is a significant change towards that. It is advisable to use alphanumeric passwords and also update passwords regularly.

3. Data Classification and Encryption 

Data classification is a way of categorizing information based on its use and value to the organization. Classifying data helps to determine the sensitivity of the information, those who have access to it and vice versa, and how the information should be handled. When there is a limit to those who can view a document, the number of employees who might inadvertently click on a harmful link is reduced.

Data encryption is a method of translating data from plaintext to ciphertext. It plays an important role in reducing the cost of a data breach. Encrypting data protects it from unauthorized use by an intruder, as it will be useless to such a person.  

4. Employee Cybersecurity Awareness Training

Employee security awareness is another great strategy to reduce the risk of a data breach. Most employers often think one class is enough to train employees on cybersecurity programs. Conducting employee security awareness training handled by security experts should be a regular fixture, as many employees can be forgetful or get too curious and open harmful links that could lead to a breach in data.

5. Regular Software Update 

One of the best ways to tackle breach attempts is to update the operating system and application software regularly. The cyber network is at risk of breaching if it isn’t updated. The feature of the new software updated versions has probably been developed to prevent cyber threats. A regular software update is a simple yet effective way to stop a data breach from happening.

6. Cyber Insurance Policy

Having a cyber insurance plan is essential to reducing the financial consequences of a data breach. Cyber insurance can be used to pay for the services related to a data leak, such as data breach notification to inform clients and other affected parties and legal expenses. It is essential to note that cyber insurance is not a measure to prevent a data breach but to ensure the organization has financial stability should a breach occur.

Other Strategies to Lower Cost of Data Breach

Aside from these six major strategies, some other strategies and tactics should be put into consideration. They are:

  • Proper Data Backup: Data is the most priceless asset of any organization as it contains valuable information that could make or break the company. Backing up data is a form of defense against cyberattacks.
  • Firewall Installation: A firewall is a barrier between networks with different levels of trust. It is simply the first line of defense against detected security threats. Keeping the firewall on all the time is an important strategy to stay a step ahead of cyberattacks.
  • Install Antivirus Software: For your network to get monitored continuously, it is recommendable to install antivirus software to protect data from malicious software aiming to steal.

A single data breach can expose millions of records, cost the company billions of dollars, and could also lead to reputation damage. Once customers’ trust is lost, it can take years to restore. Taking needed steps about your business’s cybersecurity assures your clients that their data are safe with you.

Lower the Cost of a Data Breach to Your Business With Quantum Technologies 

Your business is at risk of a data breach without putting the proper measures in place. At Quantum Technologies, our team of IT professionals is available to help your business. Contact us now to get started.