Data Breach And Fraud Interlinked – Financially Destructive!

Edward Robin

Security Awareness, Security Solutions, Security Tales

Data Breach and Fraud Interlinked--Financially Destructive!
Data Breach and Fraud Interlinked–Financially Destructive!

Javelin Strategy and Research estimated last year in Utah that more than 120,000 fraud activities will take place as a result of a data breach. It further revealed, the cost per incident of data breach will be about $3,300. The costumer that has become the victim will spend almost 20 hours in performing legal activities after the breach. Other than the wastage of time, the average expenditure of a lawyer may be close to $770. Organizations and as well as costumers should be well aware of the perils related to data breaches. Keeping the past researches conducted by Javelin and observing the breach of Utah, Javelin says that 25 percent of the costumers that had been a victim of data breach are likely to be a victim of fraud.

Criminals are not wasting their time and energy in stealing data; they are just taking it out digitally. A data breach can expose millions of identities and can put them on the stake of fraud. In the incident of data breach of Utah, more than 280,000 social security numbers of the people who were somehow linked with Medicaid and Child Health Insurance Program were leaked. Leakage of social security can be extremely harmful for the victims. Criminals can use the number in combination with other information to do bank activities and getting credit from banks. These bank activities may lead the victims to some horrifying results.

The social security number is also used by departments to verify the insurance plan. The unprotected data are easily stolen from the e-crooks. Same happened to the contractor; he did not take the required measures to protect data and lost such a delicate piece of information as per Javelin. Individuals that are afraid that they can suffer data breach, they can use security software that can lock folders and block the access of the prying eyes to the confidential data.

What should a person do if his social security number gets leaked? The first thing that you should do is to contact your bank and explain the whole scenario. There a number of banks for whom a social security number is the best way to verify identity. You may request your bank to issue you a PIN number or some signature that would be used to confirm your identity. The bank will ask you a question which only you can answer. Questions like the size of the last transaction, to which the last transaction was made and etc. When the bank will satisfy itself that you are the right person to access, you will be provided passage to your account.

It is not necessary that you take such steps after you suffered some kind of losses. As a precaution, you may take advantage of the online banking facility. You will be notified through email or text messages about every banking activity you will perform. This can help your cause, as you will be able to know what activity had taken place regarding bank account. The early you will know about the fraud, the earliest you may control damage.

Financial Impact Of A Data Breach

The financial impact of a data breach can be significant. Depending on the size and scope of the breach, the costs can range from hundreds of thousands of dollars to millions of dollars. The costs can include legal fees, investigation costs, notification costs, credit monitoring costs, fines, and reputational damage. In addition, the company may be subject to civil and criminal penalties, as well as regulatory fines and penalties.

How Many Data Breaches Are Financially Motivated?

Data Breaches Are Financially Motivated
Data Breaches Are Financially Motivated

It is estimated that approximately half of all data breaches are financially motivated. This means that the attackers are looking to gain access to the company’s data in order to make money through the sale of stolen data or through the use of the stolen data for malicious purposes.

3 D’S Of Security

The 3 D’s of security are:

1. Deterrence: This is the use of security measures to discourage potential attackers from attempting to gain access to a system.

2. Detection: This is the use of security measures to detect any unauthorized access attempts.

3. Defense: This is the use of security measures to protect against potential attacks.

Elements Of Data Security

The four elements of data security are:

1. Confidentiality: This is the process of keeping data secure and preventing unauthorized access.

2. Integrity: This is the assurance that data is accurate and complete.

3. Availability: This is the assurance that data is available to authorized users when needed.

4. Authentication: This is the process of verifying the identity of users and ensuring that only authorized users can access the data.

Types Of Breaches

There are two types of breaches:

1. Internal Breach: This type of breach occurs when an unauthorized person accesses data from within an organization.

2. External Breach: This type of breach occurs when an unauthorized person accesses data from outside an organization.

Biggest Impact Of Security Breaches

The biggest impact of security breaches is the loss of trust and confidence in an organization. Security breaches can lead to the loss of confidential data, financial losses, and reputational damage. Security breaches can also lead to legal and regulatory action, as well as increased costs to an organization for data recovery and security measures.

Types Of Security Breaches

1. Malware Attacks: Malware is malicious software that can be used to steal data or cause damage to a system.

2. Phishing Attacks: Phishing is when an attacker attempts to trick a user into providing confidential information.

3. SQL Injection Attacks: SQL injection is when an attacker takes advantage of a vulnerable system by injecting malicious code into a website or application.

4. Denial of Service Attacks: A denial of service attack is when an attacker attempts to prevent

legitimate users from accessing a system or service.

5. Unsecured Network Connections: Unsecured network connections are vulnerable to attack, which can allow an attacker to gain access to confidential data.

Can A Data Breach Make Money?

Yes, a data breach can make money for the perpetrator if the stolen data is sold on the dark web or used to commit fraud or identity theft. Furthermore, data breaches can also lead to ransom demands, where the perpetrator threatens to release the stolen data unless a ransom is paid.

Main Financial Methods Of Motivation

The main financial methods of motivation are financial rewards, such as bonuses, stock options and other incentives; recognition, such as awards and public acknowledgement; and career advancement, such as promotions and job security. Each of these methods can be used to motivate employees to work harder and be more productive.

Top Industries Affected By Data Breaches

The top two industries affected by data breaches are the healthcare and financial services industries. Healthcare organizations are particularly vulnerable to data breaches due to the sensitive nature of the data they store, such as patient records and medical history. Financial services organizations are also at risk due to the sensitive data they store, such as customer account information and credit card numbers.

Implications Of A Data Breach

1. Financial Loss: Data breaches can result in significant financial losses, such as the costs associated with notifying affected customers, legal fees, and reputational damage.

2. Loss of Sensitive Information: Data breaches can lead to the loss of confidential or sensitive information, such as customer data, intellectual property, or trade secrets.

3. Regulatory Fines: Depending on the nature of the breach, organizations may be subject to fines from regulatory bodies.

Common Causes Of Data Breaches

1. Human Error: Human error can lead to data breaches due to unintentional actions such as lost or stolen devices, inadequate security protocols, or careless sharing of confidential information.

2. Malware and hacking: Malware and hacking are common causes of data breaches, as malicious actors can access data without authorization.

3. Poorly Configured Security Settings: Poorly configured security settings can leave organizations vulnerable to cyberattacks.

4. Unsecured Networks: Unsecured networks can be exploited to gain unauthorized access to data.

5. Insufficient Employee Training: Insufficient employee training can lead to careless data handling and a lack of understanding of security protocols.

6. Physical Theft: Physical theft of data can occur if devices are not properly secured.

7. Third-Party Vendors: Third-party vendors may have access to sensitive data, and if they are not properly vetted, data breaches can occur.

What Is The Most Common Cause Of A Data Breach?

The most common cause of a data breach is human error. Examples include poor password management, careless data handling, and insufficient employee training. It is also important to note that cyberattacks are increasingly becoming a common cause of data breaches.

Impact Of Data Destruction

Data destruction is the intentional destruction of data or digital information. The impact of data destruction can be far-reaching, including loss of sensitive information, decreased productivity, and financial losses. Additionally, it can also have a negative impact on a company’s reputation if it is not done properly.

Types Of Data Breaches

The three types of data breaches are:

1. Unauthorized Access: This is when someone gains access to data without permission.

2. Data Loss: This is when data is lost due to hardware failure, human error, or malicious activity.

3. Insider Threats: This is when an employee or contractor intentionally or unintentionally causes a data breach.

Example Of A Data Breach

An example of a data breach is when an unauthorized person gains access to confidential information, such as customer data or financial information, from a company or organization.

Five Steps Of Data Breach

1. Preparation: Establishing a plan of action and identifying potential risks.

2. Detection: Identifying the breach and determining its scope.

3. Containment: Taking steps to limit the damage and prevent further data loss.

4. Recovery: Restoring systems and data to their pre-breach state.

5. Post-Incident Analysis: Evaluating the incident and developing strategies to prevent similar breaches in the future.

Some Interesting Facts About Data Breach

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