Why are data breaches on the rise and what can you do about it?

In today’s digital age, data breaches have become a common occurrence, so much so that we’ve come to view these types of incidents as the new normal. Famous data breaches like the Marriott Hotels breach in 2018, the attack suffered by Yahoo in 2018 or Facebook’s long string of data breaches and privacy violations have made international headlines, but there are many other incidents that don’t even get reported, so it’s difficult to gauge the full extent of the phenomenon.   

According to a recent report by Ponemon Institute and IBM Security, the costs of data breaches in 2022 amounted to US$ 4.35 million, while this year the costs have risen to a new record of US$ 4.45 million. Data breaches affect companies and organisations in all sectors that deal with personal information, but they are more prevalent in areas like healthcare, government agencies, fintech and insurance, education, retail and infrastructure. 

This goes to prove that data breaches are increasing at an alarming rate, becoming a major threat to businesses, institutions and individuals alike. It also highlights the need to put digital privacy and security at the forefront of our concerns. Depending on the type of data involved, the consequences of a data breach can be disastrous, ranging from reputation damage and loss of customer trust in the case of companies to financial loss, identity theft and psychological harm for individuals. 

It’s possible for the affected parties to claim compensation for a data breach, which you can learn more about at https://www.databreachcompensationexpert.co.uk, and recover some of the damages. But it’s just as important to learn how to tackle these incidents and lessen their pervasiveness, which is why you need to understand what’s causing them in the first place. 

So, here’s a look at the most important factors behind the rising trend and the most effective solutions to minimise the risk of data breaches.  

The rise and rise of data breaches 

Data breaches are the most common form of cyber threat today, but what exactly is fuelling this data breach pandemic?   

One of the main reasons for the increased frequency of data breaches is the fast pace of digitalisation and the ubiquity of the internet technologies which have penetrated every aspect and area of our lives. To put things into perspective, there are currently over 5.3 billion internet users worldwide, representing almost 65.7 per cent of the global population. 

Increased connectivity and tech solutions are making our lives easier in so many ways, but they also open up more channels for cyber-attacks to take place, rendering us more vulnerable to data breaches. Our world is becoming increasingly more digitalised and unfortunately, people are finding it difficult to keep up with these advances. 

While younger generations and digital natives like Millennials and Gen Z are definitely more tech-savvy, having been surrounded by digital devices and exposed to the world of social media all their lives, the fact remains that the majority of data breaches are caused by human error. Lack of awareness, insufficient employee training and gaps in security systems are often at the root of these incidents. 

And it’s not just our tech systems that are evolving but also cybercriminals’ tactics. These malicious actors are getting smarter and more skilled at identifying and exploiting security vulnerabilities, constantly improving their techniques so they can gain unauthorized access to sensitive information. The same tech advancements that are employed by companies and organisations to streamline their operations can also fuel hackers’ schemes, becoming dangerous weapons in their hands that can help them break beyond the usual defences.  

It’s also worth noting that data is now considered the new currency in business. Organisations that hold more data and know how to manage and process it have much higher chances of succeeding in their respective fields. As a result, businesses big and small are in a constant rush to collect more data from customers, which comes with both advantages and disadvantages. 

On one hand, this allows them to get to know their customers better and weather the changes in the market, so they can improve their services and boost their bottom line. On the other hand, collecting and storing massive amounts of data also implies additional risks, which is why companies should also ramp up their security systems. In many cases, the investment in cybersecurity doesn’t match the needs of the organisations, and that increases the likelihood of data breaches.  

Potential solutions 

The recent studies and statistics on data breaches should serve as a wake-up call for both companies and individuals and prompt them to focus more on preventing these types of incidents. Just because cyberattacks are getting more sophisticated doesn’t mean we are completely powerless.

Awareness is the first line of defence against data breaches and cyberattacks at large. That’s why getting educated and learning about all the risks and threats that reside in the virtual space is extremely important. Adopting a proactive approach rather than passive or reactive behaviour is also key to minimising the likelihood of these events. This implies being more mindful of our online interactions and the data we share, as well as knowing how this data is used and manipulated by other parties. 

Companies and organisations should also boost their security investments and be transparent about how they handle customers’ personal information. Everyone should do their part and become more involved in the fight against cybercrime. 

Bottom line 

We live in a world where data breaches, leaks and hacks are part of everyday life. This means that the only way to keep this phenomenon under control and make the digital realm a safer place is through collective effort. Everyone, from companies and institutions to the general population should work towards eliminating risks and protecting sensitive data so that we can limit the prevalence of data breaches.