Worst Data Breaches

14.09.2022

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Worst Data Breaches

The 10 worst data protection mistakes for admins

Administrators, especially those who closely work with data, can make a particularly large number of data protection mistakes due to their privileges. The principles of the GDPR must be the guiding principle of work for admins.

In any company, there is certain data flow, which means all the employees work with data to certain extent. Thus, every employee in a company is challenged when it comes to implementing and complying with the General Data Protection Regulation (GDPR), not just the so-called data protection officer, i.e. the management.

However, the administrators, whether system, security, network or storage administrators, are particularly challenged. Every admin activity is associated with special tasks from the perspective of data protection, and every administrator is at risk of committing a serious data protection error, which can lead to the worst circumstances for data and your company in general.

Possible data protection mistakes by admins usually mean a data breach, which can lead to notification obligations under the GDPR and which can also result in a fine and other sanctions from supervisory authorities.

Possible data protection breaches in admin activities

The special position of administrators and the risk of contributing to a data breach are, of course, related to the administrator rights an admin has in the system being managed and data being monitored. These high access and access rights may not be used for any purpose other than the actual administrator activity.

Any deviation from the administrator role defined in the company can violate data protection, whether it is a favor to a colleague to urgently make certain data available for which this user has no authorization at all, or to satisfy one's own curiosity as to what the new colleague in management now earns, for which one needs to access some corporate data.

 

Data protection principles as a benchmark for admin activities

To prevent data privacy breaches by administrators, it is important to align every admin activity with the principles of the General Data Protection Regulation. What this means in concrete terms is shown by the ten examples of admin errors and the consequences for data protection.

1. Lack of transparency in admin activities

There is no doubt that administrators have a lot to do and are often under time pressure. Nevertheless, care must be taken to ensure that all data processing is carried out in accordance with established data security guidelines, that it is quite clear which data was processed when, by whom, for what purpose, and to whom this data was transferred.

In data protection, the transparency of data processing is very important. However, this can only be ensured if there are data management and security guidelines that are followed and compliance with these guidelines is documented.

2. Use of privileges and data for other purposes

Those who have a lot of privileges and rights in the IT systems like to be asked if there could be an exception, if certain data can be copied to a USB stick just this once, in order to continue working on the data at home. Other employees who do not have the appropriate authorization then ask as a courtesy that the administrator rights are ultimately abused. However, neither the access authorization systems nor the purpose limitation of data may be softened.

For example, administrators must be careful that, thanks to their high level of authorization, they do not merge data sets that are located in different systems and were collected for different purposes simply because, for example, the marketing department wants to evaluate customer data in new ways without the necessary official approval (big data analyses).

3. Recording of all user activities

The high level of responsibility of the administrator's job can also mean that as an admin, there is always a certain suspicion that something unauthorized with data could be taking place in the IT systems under their care. This is why tools that provide comprehensive monitoring of all user activities are often popular.

However, only the data that is really necessary for the purpose may be recorded in the system logs (data minimization). It is usually not necessary to record all available user data.

4. Changes to system logs

A further data protection risk exists when you yourself as an admin or a colleague makes a mistake that management should not see if possible. The request to remove something from the system logs comes quickly. But data protection demands the integrity of the logs and all data with a personal reference. There must be no tampering.

5. Storing data too extensively and for too long

If there is enough data storage space in the company or in the cloud services used, data may continue to be stored that actually needs to be deleted. However, data deletion periods and retention periods must always be observed, even if there is currently no increased need for storage capacity.

6. Disclosure and transfer of data to third parties

If colleagues are unable to copy data to storage media or transfer it to the Internet for technical reasons, they are welcome to ask the responsible admin. There you will find the expertise and the data authorizations. Before such support is provided, however, it should be clarified whether the data may actually be transferred or transmitted. Here, data protection makes clear specifications that must be adhered to.

7. Insufficient documentation of admin activities

If the admin's own activity must be logged and documented very precisely, this has nothing to do with mistrust, but with data security and accountability under the GDPR. It must be possible to prove compliance with the GDPR, and this very often concerns the tasks that an administrator performs. Therefore, there must be comprehensive documentation of the activity.

8. Too early or unauthorized deletion of data

Since administration is also about ensuring clear and orderly data management, an admin may be tempted to delete data that does not make an important impression. However, deleting data too early is also one of the worst mistakes, because retention obligations must be observed, data processing must be traceable, and even seemingly not so important data can be deleted.

9. Insufficient security in one's own activities

An experienced administrator has and feels security in his own activity of data management. But data security must still be ensured. Unfortunately, it turns out that worst deviations from IT security guidelines can take place in both management and IT administration. This includes one admin not lending their credentials to another admin, or deactivating certain security controls on short notice due to time constraints. Even if you are knowledgeable about IT security issues, you must implement and adhere to strict IT security guidelines yourself.

10. Refusal in the event of a request for information

However, data protection can also be misunderstood, so that information is not provided on stored and processed data under any circumstances, only to authorized bodies in the company.
However, the GDPR recognizes certain information rights for data subjects, i.e. for the owners of the data. Requests for information under the General Data Protection Regulation should therefore be processed together with the controller and the data protection officer, in due time of course, usually within one month.

 

What are the worst data breach consequences?

The year 2022 has proven to be the year when it is impossible to ignore the consequences of a data breach. Also, in the worst case scenario, data breaches have the potential to ruin businesses.

A small business may have to shut down its entire operation within six months of a data breach. Larger companies may be able to withstand the pressure, but not without significant costs. Even multinational corporations are effected: they face financial losses, ruined credit ratings and lost productivity.

We face a cyber world where nearly 57% of people online have no security measures in place. It gets even worse when we take a look at businesses. Although many companies are aware of the consequences of data breaches, few are taking action to address these potential problems related to data security. While large companies typically have a data leak prevention plan in place, over 71% of all small businesses online do not.

These numbers are problematic because few people are aware of the worst consequences of a data breach, including leaked personal data. We want to change that and educate you on the ethical consequences of a data breach and the importance of data breach prevention plans. 

Below are some of the worst consequences to expect after a data breach.

• Identity Theft

Identity theft is one of the most serious and probably worst consequences of a data breach. The cyberattack may focus on grabbing all the personal data contained in your databases and using it for other purposes. Cyber actors can use the personal data to obtain fraudulent loans, file tax returns, create fake accounts on various platforms, and commit numerous other scams to compromise your data.

• Financial losses

If you're wondering what the consequences of a data breach are, you need to think in financial terms. A company affected by a data breach must compensate those affected by the data leak. In addition, a company must initiate an effective response to the attack and implement new security measures to prevent a similar incident with data.

What is data breach prevention? It is a way to protect your business from financial losses caused by a data breach. It is also less costly in the long run.

The consequences of a data breach include litigation and hefty fines from regulators. Audits and revisions to your internal security protocols may also occur, and you will have to bear the cost of these assessments yourself.

• Loss of productivity

One of the most annoying consequences of a data breach is the loss of productivity. If your company is affected by a data breach, you will have to shut down your entire operation to find and fix the vulnerability that led to the data breach. For some companies, this can take three-quarters of a year. Of course, this depends on the size and capabilities of the IT department.
The loss of productivity due to data attack can be prolonged if you have to deal with data security regulators as a result of the incident. These deploy their own investigators to get answers in relation to the data breach. This can take days, sometimes weeks. For large companies, the loss of revenue can be as much as $5,600 per minute. As you can imagine, this affects your ability to generate revenue and can put you at odds with your investors. Thus, from the loss of productivity we went to the loss of money, which makes data security measures vital. 

• Ruined credit rating

Among the consequences of a data breach is a ruined credit score. This attack is particularly fierce for individuals. An individual may face identity theft and other stolen personal data and financial information. This eventually leads to a plummeting credit score and the inability to obtain other financial services such as loans, credit cards, real estate rentals or even a job.
For large companies, many irregularities surface that eventually affect their credit scores - the consequences of a data breach show up when your accounts suddenly show unauthorized activity. You may also see an open line of credit that you didn't apply for, or even withdrawals and money transfers that were made fraudulently.

• Loss of privacy

One of the ethical consequences of a data breach is loss of privacy. Most companies have confidential data. But this type of disclosure not only compromises individual privacy, it also opens up your entire company and all of its corporate data, records, communications, etc. to formal investigation and public accusation.
Think for a moment about the stored data of your customers, vendors and business partners, including such personal information as social security number, addresses and even credit card numbers. If you are responsible for the financial data of individuals and third parties, you could be in hot water.

• Customer Losses

One of the worst consequences of a data breach is the loss of your customer base. After a data leak, losing customers is only natural, as many of them will no longer see your business in the same light, as safe for their data specially. Your company will be seen as untrustworthy because you don't have the resources to protect your data and data of third parties. It may seem unfair since you didn't ask to be the victim of a data breach, but you alone have the power to prevent it.

• Damage to reputation

Another consequence of a data breach is that people talk. Even if your data breach goes unnoticed by major media outlets, word of mouth will pass judgment on your company. Moreover, the worst thing is that you cannot control it. Loss of customers is followed by damage to your company's reputation. If you are unable to handle a data breach, no one will want to use your services, ultimately resulting in financial losses.

• Loss of intellectual property

When you face intellectual property loss, you face the loss of your company's trade secrets. If you keep such data as your products' specifications, patents, and other sensitive data under lock and key and it is suddenly leaked to the public, you are essentially defenseless.
The consequences of a data breach in this context are that everyone knows what makes your company unique, and your competitors can replicate your products. In this scenario, your loss is their gain.

• Online vandalism

Once your company is hit by a data breach or cyberattack, it is exposed to follow-on attacks if you don't take the right data security measures quickly. The consequences of a data breach for the perpetrator include jail time, but most hackers and data attackers don't care - especially if they know what they're doing. An unprotected website is easy prey for online vandalism, which takes time, money and resources to fix.

• Ransomware

One of the worst consequences of a data breach is dealing with ransomware attacks. A skilled hacker can infect your system with malware that denies you access to your data. The deal is simple: if you pay the ransom, you will probably regain access.
Such ransomware is quite harsh, and most regulators advise against paying it. The best way to fight ransomware is prevention. Learn about ways to prevent data loss and choose a plan that works for your business and for your data.

Conclusion

Now you know some of the worst consequences of a data breach. It's like a sour prescription for a constant headache, but you don't have to be afraid. There are many ways to prevent data breaches. By taking a few simple steps, you can protect your organization's data to avoid the situations when data is exposed. Implementing email security best practices is one of the best ways to protect your business and data. There are many DLP strategies that you can adapt to the size of your business as well. Sound password hygiene is also essential and must be included in the prevention measures. Make sure everyone in your organization has a consistent strategy for securing their accounts. Also, don't ignore software updates. Security patches always close gaps in your system that cyber attackers can otherwise exploit. Keep a close eye on your financial accounts and make sure all financial movements are authorized by those with the proper authority. Remember, you have the final say in your data security measures and the power to avoid the consequences of a data breach.