The news broke last week that the “largest data breach ever” had been discovered on a MegaUpload server. Over 700 million emails and passwords were exposed in this breach. However it is not as bad as the headline may seem. First, the breach was actually a collection (hence the name) of previous data breaches that hadn’t seen the light of day yet. That makes the massive number of records that were discovered a little easier to stomach. If all of these records came from one breach the implications would be much more severe. Second, the logins are mostly from relatively old breaches so there might be limited use for hackers today. However there the unfortunate reality is that no one ever changes their passwords so they are still at risk. Hackers often employ a brute force technique where they attempt to use the login from one site on many others. This is the main reason for password diversification. The Collection 1 breach was not as bad as it could have been, but is still garnering lots of attention.
It is interesting to see the line between data breach hysteria and actual risk to the public. The media is quick to publish headlines that sensationalize data breaches and take advantage of the public’s fear of big companies and data privacy. It seems that there is a major breach almost every week now, with names like Equifax and Marriot making headlines.
The Marriot experienced a data breach for over 500 million customers in late 2018.
People are becoming more and more skittish about their data being exposed and the sentiment is not slowing down. Public perception is a powerful thing and if they feel that businesses aren’t doing enough to protect them, eventually they’ll take action. Data privacy laws similar to GDPR are being pushed at both the state and federal level. The bills have garnered much support and will likely create a big headache for businesses down the line. While you cannot control the public’s mindset, you can take steps to ensure that your business will remain in good standing. One of the easiest things you can do is to get the right security solution and keep your customer’s data safe. You have a responsibility to them and it has the added benefit of keeping your own data safe as well. It will also save your company the headaches that come with a high profile data breach. Publicly traded companies that experience a data breach typically experience a stock drop of about 5% on the day that the news drops, and suffers for weeks afterwards.
Companies usually experience a 5% drop after a data breach.
Public perception is worse and that often translates to less customers and therefore less sales. You cannot control if other companies get breached or not, but you can control your own fate.
SecureCircle protects your data regardless of location including on-premise file servers, edge devices like phones and laptops, as well as public and private cloud storage. Over the past year, we’ve heard overwhelmingly positive feedback from compliance officers and auditors because as a byproduct of data protection that works everywhere, SecureCircle is also able to track files at all times. Protection and visibility for your company’s sensitive data. Visit our website to learn more about what we do.