How can companies protect against data breaches?

Data breaches can be very costly and can have a damaging impact on the reputation of the companies involved. It is indispensable for companies to invest in security measures to protect against such occurrences. In 2020, data breaches in the United States alone rose by 30% compared to the previous year, with the average cost of a data breach being around $3.86 million. Hence it is essential for businesses to minimize the risk of a data breach occurring. In this article, we will look at ways that companies can protect themselves against data breaches.

1. Invest in robust cybersecurity measures:

Investing in robust cybersecurity measures can safeguard your business against cyber attacks and data breaches. Data breaches can occur in various ways, including phishing scams, hacking, malware attacks, and outright theft. Thus, companies need to implement layered security measures that include firewalls, antivirus software, and intrusion detection systems. Your system should also provide encryption, multi-factor authentication, and advanced data loss prevention techniques.

Therefore, ensuring that your security measures are robust can minimize the risk of breaches and provide a secure environment for your business. You should also regularly update your systems and software for emerging security threats.

2. Use strong passwords:

Using strong passwords is a basic security mechanism, but it can go a long way in protecting your business from data breaches. Companies can enforce strong password policies, mandating the use of complex passwords and changing them regularly. Passwords should be at least eight characters long, and they should include upper and lowercase letters, numbers, and special characters.

You should also discourage employees from reusing passwords, and sensitive accounts such as admin accounts should have unique passwords. The use of password managers can help employees maintain unique passwords for various accounts without the need to remember them. Furthermore, enabling two-factor authentication provides an extra protective layer, requiring users to provide a unique authentication code sent to their cell phones.

3. Train your employees:

Employee negligence is one of the leading causes of data breaches, with 22% of data breaches resulting from employee error. Thus, companies must make their employees aware of cyber threats and how to avoid them. Formal cybersecurity training and regular reminders of current threats help sensitize employees to the value of security.

You should also educate employees on using public Wi-Fi. Employees should be advised not to use public Wi-Fi connections for accessing confidential company data. Otherwise, they should use a Virtual Private Network (VPN) when accessing company data on public Wi-Fi.

4. Manage data access:

Companies should have robust access controls to safeguard confidential data. Employees should only have access to data they need to perform their job functions. Companies can implement role-based access controls where only employees with a need to access specific data are allowed to view or modify it.

Moreover, companies can monitor employees’ access and activities to identify unusual behavior or detect any suspicious activity. This can mean limiting the use of USB drives, cameras, and other external devices that can be used to transfer confidential information.

5. Regularly back up data:

Regular data backups can help minimize the risk of data loss in the event of a breach. Companies can set up automated backups of their data and store it remotely. Thus in case of a breach, the business can quickly restore their data, minimizing disruption to the business continuity.

Additionally, companies should test their data recovery procedures regularly and ensure that the backups are functioning as expected. Regular testing can identify any defects and allow for timely correction before they lead to significant data losses.

6. Monitor your supply chain:

Companies can be vulnerable to data breaches through their supply chains. Companies should vet their third-party vendors who may hold confidential data. Suppliers should conform to set security standards, and their security practices should comply with the same level of cybersecurity as their business.

Companies should also apply regular audits to their vendors and monitor third-party access to their networks. Continuous monitoring can help detect unusual activity patterns and identify any weak links in the security chain.

7. Have an incident response plan:

Having an incident response plan (IRP) can help businesses respond effectively in case of a data breach. Your plan should include strategies for handling data breaches, including identifying current threats, mitigating risk, containing the breach, and restoring operations. You should also establish communication channels and clearly define roles and responsibilities of key personnel.

Furthermore, regular incident preparedness drills can help improve the effectiveness of the IRP. Companies should also document any breaches that occur, the lessons learned from them, and how they can be prevented in future.

Conclusion:

In conclusion, data breaches have become one of the most significant threats to businesses, and their impacts are costly. Therefore, companies need to prioritize invest in security measures to protect their data. Investing in robust cybersecurity measures, incorporating multi-factor authentication, implementing strong access controls, regular backups, employee education, supply chain vulnerability monitoring, and having an incident response plan are just some of the essential measures that companies can implement to minimize data breaches. With ongoing advanced technology and the growing threat of cyber attacks, businesses should adopt a proactive approach to safeguard their operations, personnel, and clients.