By Justin Brose, Information Security Analyst, TraceSecurity
All users of the internet implicitly trust third parties with their data. These external organizations can be personal banks, social media platforms, healthcare providers, etc. These entities are given information that most people would be reluctant to share with anyone they did not know. Regardless, we trust these organizations with our information because we assume that they are following the best cybersecurity practices.
In most cases, this is required by law; however, there are always exceptions to the rule. These exceptions can lead to this sensitive information being leaked on the public internet, and soon that information could be sold on the Dark Web to the highest bidder. This cyber event is known as a data breach. In this article, we will discover what a data breach is, how data breaches occur, and how the information gained from a data breach can be used against the victims.
To begin, it is important to clearly define what a data breach is. According to IBM, a data breach is “any security incident in which unauthorized parties access sensitive or confidential information, including personal data (Social Security numbers, bank account numbers, healthcare data) and corporate data (customer records, intellectual property, financial information)” (Kosinski, 2024). In other words, a data breach occurs when unauthorized individuals gain access to information that is meant to remain protected and private.
There are many ways an unauthorized user can gain access to confidential information. The first attack vector is social engineering. This attack vector leverages natural human weaknesses to gain information that an individual otherwise shouldn’t have. This is typically the most successful path for data breaches, as humans are more likely to make mistakes than machines.
Another viable compromise method for a data breach is unpatched systems. New vulnerabilities surface every day for commonly utilized software. Malicious actors will utilize vulnerability scanners to identify potential security flaws in organizations’ external-facing services. The right flaw could allow an attacker to break through external defenses and exfiltrate sensitive information.
The last method that we will discuss is insider threats. It is easy to assume that employees of an organization would have little to no part in aiding data breaches, however, in a study performed by Egress in 2021 they identified that, “94% of organizations have suffered insider data breaches in the past year; 74% were due to employees breaking rules, and 28% to intentional malicious behavior” (Egress, 2021).
This alarming statistic shows that most organizations suffer data breaches because of their employees. In fact, three-quarters of the time, it is due to an error made by an employee, and another one-third of that statistic is due to malicious behavior by internal employees. This shows that organizations must be more vigilant than ever when training employees and making them aware of poor security practices.
Now your organization knows what a data breach is and knows that statistically it has likely been part of one (somewhere along the way, whether it is from direct impact or a third party has fallen victim to one), so what is the impact of these data breaches? As previously mentioned, personal information such as Social Security numbers, address, and full name can be gathered from these breaches.
This can allow a malicious actor to have all of the necessary information to successfully pull off identity theft, credit theft, and/or unauthorized access to personal/financial accounts. For organizations, these data breaches can impact the reputation of the organization and can break trust within corporate partnerships. To make matters worse, if this data breach was caused by negligence in an organization’s cybersecurity program, the organization could be legally liable for any damage caused to other parties affected by this cyber event.
In an increasingly connected digital world, data has become one of the most valuable – and vulnerable – assets. While users may place their trust in third-party organizations to safeguard their personal data and financial information, the reality is that no system is entirely immune to compromise. Whether through social engineering, software vulnerabilities, or insider threats, data breaches remain a persistent and evolving threat to both individuals and organizations.
The consequences of a breach can be severe: identity theft, financial fraud, reputational damage, and legal liability. For individuals, the exposure of sensitive personal data can lead to long-term hardships. For organizations, the cost is not just monetary; it is a loss of trust, credibility, and business continuity.
Ultimately, awareness is the first step toward defense. By understanding how breaches occur and recognizing the wide-reaching impact they have, users and organizations alike can begin to take proactive steps toward improving cybersecurity posture, investing in training, and strengthening digital resilience. In the age of information, protecting data is not just a technical responsibility; it is a shared imperative.
Connect with TraceSecurity to learn more.
References:
Kosinski, M. (2024, May 24). What is a data breach? IBM.
Egress. (2021, July 13). 94% of organizations have suffered insider data breaches, Egress research reveals. Egress: A KnowBe4 Company.