What is a Data Breach?

A data breach is the unauthorized access, use, disclosure, or theft of sensitive, confidential, or personal information. Data breaches can occur when cybercriminals gain access to a system or database and steal or expose the information stored there. They can also occur when information is accidentally or improperly disclosed by an individual or organization.

Data breaches can have serious consequences, including financial losses, reputational damage, and legal liabilities. They can also have serious impacts on individuals whose information is compromised, including identity theft and other forms of fraud.

There are several ways that data breaches can occur, including through cyber attacks, such as hacking and ransomware, and through physical means, such as the loss or theft of a device containing sensitive information. To prevent data breaches, it is important for individuals and organizations to implement strong security measures, such as using strong passwords, regularly updating software and operating systems, and implementing controls to prevent unauthorized access to sensitive information.

data breach laws

There are various laws that protect against data breaches and provide consequences for individuals and organizations that fail to protect sensitive information. These laws vary by jurisdiction, but some common examples include:

1. The General Data Protection Regulation (GDPR) is a data protection law that applies to organizations in the European Union (EU) and European Economic Area (EEA). It requires organizations to protect personal data and to report certain types of data breaches to authorities and individuals affected by the breach.

2. The Health Insurance Portability and Accountability Act (HIPAA) is a law that applies to the healthcare industry in the United States. It requires organizations that handle protected health information (PHI) to implement safeguards to protect the privacy and security of PHI.

3. The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards that apply to organizations that handle payment card information. It requires organizations to implement measures to protect against data breaches and to report certain types of data breaches to authorities and card issuers.

In addition to these laws, many countries have their own data protection laws that apply to the collection, use, and storage of personal information. It is important for organizations to be aware of and comply with these laws to protect against data breaches and the potential consequences of such breaches.

Prevent Data Breach

There are several steps that individuals and organizations can take to prevent data breaches and protect sensitive information:

1. Use strong, unique passwords: Use strong, unique passwords for all accounts and devices, and regularly update them. Avoid using the same password for multiple accounts.

2. Enable two-factor authentication: Enable two-factor authentication, which requires the use of a second form of authentication in addition to a password, for all accounts and devices.

3. Keep software and operating systems up to date: Regularly update software and operating systems to ensure that the latest security patches are installed.

4. Use a firewall: Use a firewall to block incoming connections from known malicious sources.

5. Use antivirus software: Use antivirus software to identify and block malware, including ransomware.

6. Implement access controls: Implement controls to prevent unauthorized access to sensitive information, such as by requiring users to authenticate before accessing certain data or systems.

7. Regularly back up data: Regularly back up data and store it in a secure location to minimize the impact of a data breach.

8. Train employees: Train employees on the importance of data security and best practices for protecting sensitive information.

By implementing these measures, individuals and organizations can significantly reduce their risk of suffering a data breach and the potential consequences of such a breach.

Board Oversight of Cybersecurity Risk

Why CISOs and Boards Should Work Together to Improve Cybersecurity

Corporate board members often ask management specific questions that stop short of demanding metrics, It is this lack of measurable criteria which often hinder the effectiveness of cyber-security efforts.

First and foremost, it is imperative for the board to appreciate the impact that information security can have on the business. Boards should treat security as a top business risk as well as a top business opportunity. Major security events can have a significant impact on revenue, brand, and can lead to catastrophic results.

Board oversight of cyber-security has increased over the years. Even board members without technical expertise have had to become rapidly acquainted with IT risk and security concepts. In recent years, frameworks and best practices have emerged to help boards get a grip on their organizations’ cyber-security posture.

Specific Areas of Focus:

• Improved emergency response times and evacuation management with real-time tracking of personnel movements around your site.

• Information related to how the organization manages cyber-security, security awareness, and the enterprise risk management (ERM) program.

• Actively monitor workers within a zone, on local or remote sites.

• Ensure blast zones have been cleared before explosives are detonated.

• Monitor the movement of people to a muster area during an evacuation.

• Ensure the security control room is aware of workers who are alone on remote sites.

• Monitor personnel who remain within a high security area at the end of a working day or shift.

Breach Response Protocol

Corporate boards should receive regular reports from executives about the company’s cyber-security risks, management review processes, overall health, and readiness to respond to an incident. Best practices include quarterly reports from firm leaders and more frequent reporting if needed.

Company leaders should carry out incident response plan tabletop exercises annually at a minimum. Board members should expect reports on the test outcomes. Details about how the plan will be updated are based on the test results.

Third-Party Risk

Regulators are increasingly targeting third-party risk. Wide-reaching laws like GDPR, industry-specific regulations such as the New York Department of Financial Services (NYDFS) Cyber-security Regulation and NERC CIP-013 in the utilities industry, provide specific requirements for managing third-party risk.

User-Related Risk

Human error can expose an organization to a wide array of cyber-attacks.. Business leaders commonly state that employee negligence is the most common cause of data breaches. Phishing for example, was implicated in 32% of data breaches in 2018. In addition, poor password practices, connecting to public Wi-Fi from company devices, and sharing files that contain malware are all examples of employee errors that could translate into huge costs for any organization.

In terms of board qualifications, 41% of companies reported highlighting cybersecurity expertise as an area of focus for new board directors. But when it came to interactions with management, only 34% of organizations mentioned the frequency of board reports, with just 11% reporting briefing the board annually or quarterly.

Recommendations for Boards of Directors

Questions to ask:

• Has responsibility for cyber-security been formally assigned at management level (e.g., CISO) and on the board itself (e.g., audit committee)?

• Is the board getting regular briefings on the organization’s strategy regarding cyber-security risks and cyber resilience?

• How engaged is the board in reviewing the organization’s cyber-risk management program and security-related investments?

• How has the organization (i.e., management) fared in recent tabletop exercises or simulations? Are directors taking part in such activities?

Vinny La Rocca

CEO

CyberSecOp.com