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Did you know that during the first three quarters of last year alone, 5,183 data leakages were reported? Moreover, risk-based security research reveals that these breaches threatened over 7.9 billion records. These figures represent a 33.3% growth in data leakage cases and a 112% growth in the stats of vulnerable files.
Unfortunately, this prevalence doesn’t directly correspond to how much businesses are preparing to combat them. For example, some don’t use Nakivo VMware backup or other solutions to protect their critical information, not realizing how data leakage compromises or affects their businesses. Read on to discover the most common problems data leakage can cause.
In This Post:
Lost or Compromised Customer Info
Data leakage can compromise or cause the loss of sensitive consumer information. For instance, Equifax suffered a breach in May and July 2017. The leakages led to the loss of personal information identifying some 800,000 UK consumers. Unfortunately, it’s suspected that most of it ended in the hands of hackers. Remember, most customers who lose their details under these circumstances usually switch to the competitors in the hope of better service and security protection.
You Might Land in Legal Trouble
Also, data leakages could land you in legal trouble. Widespread data attacks have prompted many governments and regional blocs to introduce strict laws curbing reckless management of consumer details. Some of them have heavy penalties and even possible jail terms for non-compliance. For instance, in 2016 alone, the UK government fined businesses for a total of £3.2 million for violating its data protection laws.
Most coordinated cyberattacks that leak information are intended to cause financial losses. Predictions show such attacks will cause the world to lose $6 billion before this year ends, signaling that the situation with data losses gets worse day by day.
You Become Easy Prey for Hackers
Data leakages compromise your online security, thus exposing you to hackers. For instance, when hackers access passwords and other sensitive data, they are in a better position to ravage your system.
It Risks Your Employee Data
Your databases contain the details of different stakeholders. Therefore, you should protect all of them, including your workers. Companies keep sensitive employee details. For example, they have personal identification details and other critical financial data.
When these details are compromised and leak, the leakage exposes unknowing people to hackers. The latter can use their leaked personal information to attack victims physically or emotionally. In 1997, California pioneered data privacy laws following the murder of a famous TV actress. Her killer got her residence details from the local Transportation Department and used that information to trail a woman to her house, where he shot her dead. This sad incident shows that data leakages can harm your workers physically.
You Could Lose Your Reputation
Moreover, data leakages can cost your business its reputation. Remember, it takes years to build a strong reputation, but only a few days to ruin it. It’s no wonder research has shown that one-third of affected consumers ditch businesses that lose their details in leakages. Moreover, 85% of retail consumers who fall victim to such attacks share that information with others, while 33.5% pour their frustrations and anger via social media. Consequently, bad reputation spreads like bush fire and destroys customer trust in the affected business.
Unfortunately, repairing a tarnished image is one of the hardest tasks CEOs can ever face. The task doesn’t respect a company’s financial might or revenue status. Thus, it’s wiser to prevent data breaches instead of firefighting to quench the flames of reputation damages.
Loss of Sensitive Data
Lastly, you risk losing your sensitive data to breaches and leakages. For instance, the loss of personal identification details exposes them to thieves. The latter can manipulate information for criminal purposes, thus harming individuals in many ways. For instance, if a hospital loses its patient’s treatment data, the loss can disrupt their treatment processes. This way, they could be harmed or even die from such confusion.
Data leakages are rife and can affect companies and their stakeholders disastrously. These consequences cause financial and even physical damage. So, knowing about these problems, you should prioritize data safety by introducing a robust policy for keeping all sensitive details intact.