Avoid Data Breaches and Save Your Company Money

by | Aug 16, 2019

Tips on how to avoid privacy risks and breaches that big companies face today. How much data breaches cost in 2019. Why consumers are shying away from sharing their data. Airline phishing scam could prove to be fatal in the long-run.

Stay Ahead of the Privacy Game

The Equifax data breach is another wake-up call for all software companies. There’s so much going on today, with regards to data exposure, fraud and, threats. Especially with the new laws proposed, companies should take the necessary steps to stay away from penalties and breaches. Here are some ways you can stay ahead of the privacy game. 

  1. Get your own security hackers – Many companies have their own cybersecurity team, to test out for failures, threats, etc. Companies also hire outside hackers to uncover any weaknesses in the company’s privacy or security tactics. “Companies can also host private or public “bug bounty” competitions where hackers are rewarded for detecting vulnerabilities” (Source)
  2. Establish trust with certificates of compliance – Earn your customers’ trust by achieving certificates of compliance. The baseline certification is known as the ISO 27001. If your company offers cloud services, you can attain the SOC 2 Type II certificate of compliance.
  3. Limit the data you need – Some companies ask for too much information, for example, when a user is signing up for a free trial in hopes of making easy money. Why ask for their credit card number when you are offering a free trial service? If they love the product or service, they themselves will offer to pay for full services. Have faith in your product or service.
  4. Keep the data for as long as needed only – Keeping this data for long periods of time, when you don’t need it is simply a risk for your company. Think about it: As a consumer yourself, how would you react if your own personal data was compromised because of a trial you signed up for years ago? (Source)

How much does a data breach cost today?

According to a 2019 IBM + Ponemon Institute report, the average data breach costs a company approximately USD$1.25 million to USD$8.19 million, depending on the country and industry.

Each record costs companies an average of USD$148, based on the report’s results, which surveyed 507 organizations and was based on 16 regions in the world, across 17 industries. The U.S. takes first place with the highest data breach, at USD$8.19 million. Healthcare is the most expensive industry in terms of data breach costs, sitting in at an average of USD$6.45 million. 

However, the report isn’t all negative, as it provides tips to improve your data privacy. You can reduce the cost of a potential data breach by up to USD$720,000, through simple mitigating steps such as an incident response team or having encryption in place (Source).

Consumers more and more hesitant to share their data

Marketers and data scientists all over – beware. A survey of 1,000 Americans conducted by the Advertising Research Foundation indicates that consumers’ will to share data with companies has decreased drastically since last year. “I think the industry basically really needs to communicate the benefits to the consumer of more relevant advertising,” said ARF Chief Research Officer Paul Donato. It is important to remember that not all consumers would happily give up their data for better-personalized advertisements (Source).

Air New Zealand breach could pose long-term effects

Air New Zealand’s recent phishing scam from earlier this week has caused fear among citizens. The data breach exposed about 112,00 Air New Zealand Airpoints customers to long-term privacy concerns. 

Victims received emails requesting them to disclose personal information. They then responded with personal information like passport numbers and credit card numbers. 

“The problem is, the moment things are out there, then they can be used as a means to gain further information,” said  Dr. Panos Patros, a specialist in cybersecurity at the University of Waikato. “Now they have something of you so then they can use it in another attack or to confuse someone else” (Source).

A good practice for situations similar to this is to regularly change your passwords and monitor your credit card statements. Refrain from putting common security question information on your social media such as the first school you attended or your first pet’s name, etc. Additionally, delete all suspicious emails immediately without opening them (Source). 

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