6 Ways to Lower the Costs of a Data Breach of Your Business

Zachary Kitchen
November 30, 2022
6 Ways to Lower the Costs of a Data Breach of Your Business

Data breaches are becoming more popular, yet small business owners don't always know how to avoid them or what to do if one occurs. Online security breaches are not only inconvenient but also costly. So, a breach can be complicated to recover from for small businesses that are unable to absorb the costs.

Data breach rates are increasing, and so is the cost per breach. According to a recent study, internet users globally saw approximately 52 million data breaches during the second quarter of 2022

Lowering the cost implication of data theft or breaches is one crucial factor to consider for any effective security strategy. When a security breach occurs, its cost can be influenced by a lot of factors, either reducing or increasing the final cost. Some of such factors are external, such as regulations and laws, and should be received the way they are.

There are many factors within the company's control that, when used properly, can greatly lessen the effect of data or information breaches. Such factors can transform a challenge that could bankrupt a large corporation into a situation that can be managed easily. You can significantly reduce the risk of a data attack by implementing some effective security tips.

Ways to lower the risk of a data breach

No matter the size of your company, you must safeguard your sensitive data and ensure data breaches don’t occur. You should have plans in place to assist when a crisis occurs. Here are some tried-and-true methods for keeping your data safe:

Examine your security protocols

Start by examining your existing security protocols. Strengthening your security is the best approach because hackers would have to break multiple safeguards to be able to gain access to sensitive data. Tools like Firewalls, secure software for file-sharing, encryption, and antivirus software can all help to keep sensitive data out of the hands of criminals. 

Implement password hygiene.

Password hygiene is crucial for all employees who can access the corporate network. Training employees to change passwords often, use strong password recommendations, and enable two-factor authentication when available will keep credentials and crucial business information secure.

Educate your employees about security procedures.

Having a security awareness sensitization or training for your employee is another excellent strategy for lowering the possibility of a data breach occurring. To begin, employees should be well informed of security policies in the organization and directives. Give examples of various scenarios in which people seek information. Notify employees of any phone calls demanding personal or other confidential information.

Audit and reassess

To continuously prevent data breaches, it’s necessary to audit and re-examine your efforts regularly. Would you be required to follow some new security protocols? Are your employees working contrary to laid down security procedures? Take time to audit your security processes regularly.

Data breaches have the tendency of becoming time-consuming and costly. However, it is possible to avoid the majority of data breaches. If you work proactively and train your team well, you are possibly able to avoid most data breaches and prepare for a stronger defense if any breach occurs. 

Consider Cyber Insurance.

With an increasing rate of businesses experiencing breaches, the increase in the adoption of cyber insurance policies should not come as a surprise. It is critical to remember that cyber insurance functions more as a reactive control, which means it does not guarantee the protection of a business from data breaches. Rather, all insurance does is ensure that the organization has adequate financial stability when there is a security breach. Cyber insurance helps pay for various data leak-related services, such as payment for getting a forensics expert or other professional services needed to deal with a breach.

Make Use of Encryption Techniques

Encryption is a crucial technology for reducing the possibility of data leakage.  It can safeguard data at a rest mode (for example server, files on a computer, the Cloud, or mobile device) and transit data (for example., information uploaded or downloaded via the Internet or being used by any app).  In either of the two cases, if a criminal obtains encrypted data, such will be useless, unless he has the means of reading it, for example, having a private encryption key. As a result, implementing extensive encryption techniques in a company is an effective strategy for lowering the cost of a likely data breach.

Limit the Cost of Data Breaches

Getting protection for your business’ data and reducing damage when a disaster occurs should be top priorities from the start. Consider outsourcing part or all of your security needs to a competent and experienced managed service provider to ensure adequate protection. This can be a more hassle-free way of protecting your data, allowing you to focus on the effective running of your company operations.

Digital Crisis provides customized managed IT support with the tools you need to make your technology work for you. We assist businesses in operating smarter, not harder. Contact us today.

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