Data breaches are a genuine and ever-present risk for all businesses, regardless of size. In the unfortunate event that a breach occurs, a business's immediate response is critical in order to mitigate as much damage as possible. The damage data breaches can cause is on the rise, with the average cost of a data breach reaching 4.88 million USD. Effective damage control requires a thought-out plan for everyone to follow, and perhaps even more importantly, avoiding common pitfalls that can exacerbate the situation.
Pitfall #1: Delayed Response
The first and most common mistake a company can make after a data breach is delaying its response. Time not spent mitigating the damage is all the more time for the damage to grow, potentially even leading to a risk of further data loss. As soon as you detect a breach, you should execute your incident response plan. An incident response plan should include steps for:
- Containing the breach
- Assessing the extent of the damage
- Notifying affected parties of:
- What happened
- What data was compromised
- What steps are being taken to address the issue
- Notifying applicable regulatory authorities
Pitfall #2: Failing to Contain the Breach
The first step in a data breach incident is to contain the breach as quickly as possible to prevent further data loss. And the first step in containing a breach is to isolate the affected systems. Isolating a data breach can frequently involve:
- Disconnecting systems from the network
- Disabling user accounts
- Shutting down specific services
Once you contain the breach, assess the scope of the damage by identifying what data was accessed and whether it was copied or downloaded by the hackers. After assessing the scope of the breach, deploy remediation measures that address the exploited vulnerabilities. Ensure that your company takes all necessary steps to prevent a recurrence of the data breach.
Pitfall #3: Inadequate Communication
During a data breach, communication is key for meeting regulator requirements and reestablishing trust with your customer base. How you communicate after a data breach sets the tone for how your company will be perceived during the crisis. Inadequate or unclear communication leads to misunderstandings, frustration, and further reputational damage. It is good practice to establish clear communication channels to keep stakeholders informed with regular updates in a consistent place, such as a section on your website, email updates, or even a dedicated hotline. Additionally, when communicating with non-technical stakeholders, avoid using excessive jargon. The goal of communication, especially during an incident such as a data breach, is to make information accessible and understandable. Clearly explain what happened, what steps are being taken, and what affected individuals should do to protect themselves.
Pitfall #4: Neglecting Legal and Regulatory Requirements
Ignoring legal and regulatory requirements can have severe consequences, especially after a data breach. Many jurisdictions have strict data protection laws that dictate how businesses are legally obligated to respond to data breaches. Failing to comply can result in significant fines and legal action. Familiarize yourself with the legal and regulatory requirements in your jurisdiction. These requirements will frequently include:
- Documenting the timeline of events
- Documenting the steps taken to contain the breach
- Communicating with stakeholders
Proper documentation can protect your company in the event of legal scrutiny.
Pitfall #5: Overlooking the Human Element
The human element is an inseparable aspect of data breaches that is often overlooked. Human error is a common cause of data breaches and can worsen their severity, and human error is more likely during times of emotional distress, which data breaches can cause. You should provide employees with support if the breach compromised their data, such as addressing any concerns they have or even offering credit monitoring services if such data was leaked. Supporting your employees helps maintain morale and trust within the organization. Customers are likely to be anxious and concerned after a data breach, so you should address their concerns promptly and empathetically as well. Provide affected customers with clear instructions on steps they can take to protect themselves and offer help where possible. A compassionate and helpful response goes a long way toward maintaining customer loyalty. Finally, like any cybersecurity incident, a data breach should be used as a learning opportunity. Conduct a thorough post-incident review to identify what went wrong and how it can be prevented in the future. Afterward, training and awareness programs should be started to educate or refresh employees on data security best practices.
Data breaches are a challenging experience, and how your company responds can make a significant difference in whether or not it continues to survive.