Today, businesses have to contend with a greater number of obstacles regarding the safety of their customers’ data than ever before. 2021 saw a 15% bump in the average number of data breaches and cyberattacks, and right now, cyberattacks rank among the top five global risks (World Economic Forum). Data privacy issues are becoming rampant despite tighter personal information laws. As a result, it is of the utmost importance to formulate a data protection plan that not only handles present difficulties but also makes preparations for any new challenge that may arise in the future. Because of the potentially catastrophic consequences of a data breach, an increasing number of businesses are devoting significant resources to training their employees and protecting their proprietary information. Therefore, in this article, we’ll have a quick review of the biggest challenges companies face during data protection.
Lack of Integrity
Many companies fail to place a high value on data integrity. As a result, they are left to deal with the fallout from data privacy issues and the fact that correcting errors is significantly more time- and money-consuming than preventing them in the first place. Data integrity means that data remains precise, comprehensive, and consistent across the board throughout its lifecycle. Therefore, preserving data integrity enhances reliability and credibility. Data is constantly transferred and replicated; this often creates room for errors, including:
- Transfer errors
- Staff error (which can be intentional or unintentional)
- hacking/ cyber-attacks
Lack of data integrity questions a company’s credibility and can negatively impact performance. Data is needed to make informed decisions. Therefore, inaccurate or incomplete data is a great threat to business growth.
Data Theft
Data theft is often performed by adversaries who have easy access to the company database, servers, and tools. It entails an unauthorized transfer of information. Although a small fraction of data theft is unintentional, a vast majority is intended to hurt a company’s finances and reputation. Data theft may occur due to:
- Phishing attacks
- Weak passwords
- Insider theft by employees
- Physical data theft etc.
Examples of corporate data that can be stolen include client records, financial details, passwords, company methodologies, and staff details. Data theft can lead to lawsuits, ransomware demands, and loss of company credibility and funds. Companies run at the risk of data theft when they begin to experience data privacy issues. Public carriers and commercial network owners widely use landlines, fragile microwaves, satellite links, or many servers in Internet and Wide Area Network (WAN) environments. As a result, employees interested in the information are free to have a look.
- Phishing Attacks – 91% of data breaches have been attributed to phishing attacks. It has become a pandemic. Phishing is a malicious tactic used to obtain confidential and valuable information from internet users. Hackers weaponize these details to defraud people of their money and resources. These attacks can lead to loss of funds and confidential information and malware installation and can also tarnish the company’s reputation. Therefore, having proactive and reactive measures is pertinent for every organization.
Expenses Caused By Human Error
There is a long history of human error leading to data breaches. According to CybSafe’s examination of data breaches in 2019, 90% were caused by human error. These errors have led to attacks on encrypted channels and sensitive data, leading to enormous financial losses. For instance, the regulatory authority may impose fines or other penalties if the breach includes a violation of a compliance or industry mandate – it gets even worse for companies with an international customer base as they have to answer to different regulatory bodies with varying sanctions. In 2018, the EU introduced the General Data Privacy Regulation (GDPR), which protects individuals’ rights to their personal data. This makes it possible for customers to claim compensation for any side effects of data breaches, including emotional and mental health side effects. Whatever the outcome, the company’s reputation and customer trust may be permanently damaged. And that, without a doubt, is the ultimate cost.
Conclusion
According to the U.S securities and exchange commission, Small and Midsize Businesses (SMBs) are the principal targets of cyberattacks. Nevertheless, keeping data secure is an ongoing challenge for every company, regardless of the infrastructure. Any company’s most important asset is its data. And whether it be financial reports or a business plan for your new company, your database must be protected at all times. Using the most up-to-date hardware and software for your digital demands will help safeguard your devices and data from cyber threats. As a result, you will also need to take additional precautions, such as installing a firewall. This will help your organization reduce the risk of running into any of the challenges we discussed.