Practical Data Breach Guidance for Security Teams
Initial Response (First 24 Hours) During the first 24 hours after identifying a breach, security teams need to identify …
FACT: The average cost of a data breach reached an all-time high of $4.88 million, marking a 10% increase over last year.
From small businesses to Fortune 500 companies, no organization is immune to the threat of unauthorized data access.
Understanding how data breaches happen, how to respond, and your regulatory requirements is essential for any organization that handles sensitive data.
But before that, let’s define what a data breach is.
Contents
What is a data breach?
A data breach is a security incident that enables unauthorized access to sensitive information.
These attacks can range from accidental exposures due to human error all the way to sophisticated attacks orchestrated by nation-state actors.
Attacks have become increasingly complex, often involving multiple attack vectors such as phishing attacks, malware infections, or exploiting software vulnerabilities.
The scope of a data breach can vary significantly, from small-scale incidents affecting a handful of records to massive compromises impacting millions of individuals.
Common types of exposed information include personally identifiable information (PII) such as social security numbers, credit card details, and healthcare records, as well as corporate data like trade secrets, customer databases, and financial statements.
While cybersecurity discussions often focus on malicious attacks, it’s important to understand that data breaches can occur through various other means.
Stolen devices, documents disposed of improperly, and misconfigured security settings can all lead to unauthorized data exposure as well.
Understanding the most common attack vectors is crucial to properly defend against these attacks.
Common causes of data breaches
To effectively prevent attacks, organizations need to understand the most common attack vectors that lead to unauthorized data access. Here’s a list of the most common root causes:
- Leaked or Stolen Credentials - Compromised login credentials are often obtained through infostealer logs, combo lists, or third party breaches. Cybercriminals purchase stolen credentials on dark web marketplaces. Leaked credentials are often used in credential stuffing attacks to find additional apps where they work (due to password reuse). A single set of stolen credentials can lead to unauthorized access across multiple systems, especially when employees use their work email addresses for personal accounts.
- Human Error and Employee Negligence - Some of the most mistakes employees make are accidently sharing passwords, falling for phishing scams, or mishandling sensitive documents. Even simple mistakes like accidentally uploading sensitive files to a public server can result in a significant data leak.
- System Vulnerabilities and Outdated Software - Organizations that don’t apply security patches in time or continue using legacy systems with known vulnerabilities are prime targets. These become particularly dangerous when publicly available exploits are available.
- Poor Security Practices and Access Controls - Weak security configurations like insufficient network segmentation, excessive user privileges, and lack of multi-factor authentication create environments that are more prone to attacks. This is often made worse by poor monitoring and incident detection capabilities.
- Third-Party and Supply Chain Vulnerabilities - Even organizations with strong security can be compromised through less secure partners or service providers who have system access. The interconnected nature of modern business means that security weaknesses in one part of the supply chain can lead to breaches affecting multiple organizations.
Navigating the Legal and regulatory landscape
As data breaches become more common, governments and regulatory bodies have responded with increasingly stringent requirements for data protection and breach notification.
Understanding these regulations is crucial for any organization that handles sensitive data.
Global and regional regulations
One of the most well-known regulations is the General Data Protection Regulation (GDPR).
The GDPR imposes strict requirements on organizations handling EU residents’ data.
These include mandatory breach notification within 72 hours and potential fines of up to 4% of global annual revenue or €20 million, whichever is greater.
In the United States, organizations must navigate a patchwork of state and federal regulations.
The California Consumer Privacy Act (CCPA) and its successor, the California Privacy Rights Act (CPRA), set strict requirements for businesses handling California residents’ data.
These include mandatory breach notifications and significant penalties for non-compliance.
Industry-specific requirements
Beyond geographical regulations, many industries have their own specific standards.
The Health Insurance Portability and Accountability Act (HIPAA) governs healthcare data, while the Gramm-Leach-Bliley Act (GLBA) applies to financial institutions.
The Payment Card Industry Data Security Standard (PCI DSS) sets requirements for organizations handling credit card data.
The Securities and Exchange Commission (SEC) has specific reporting requirements for publicly traded companies.
Compliance management
Organizations often need to comply with multiple overlapping regulations.
This is why a comprehensive compliance program is crucial.
Beyond notification requirements, regulations typically mandate specific security controls, incident response procedures, and documentation.
Companies need to maintain detailed records of what security they have in place, conduct regular risk assessments, and implement technical and organizational controls to prevent data breaches.
Post-breach compliance checklist
When a data breach occurs, having a well-documented incident response plan is crucial for keeping things under control and ensuring regulatory compliance. Here’s a useful checklist when managing the aftermath of a breach:
- Immediate Containment and Documentation - Isolate the affected systems as soon as possible. This will help prevent the spread and further data loss. Document the initial details you know about the breach. This should include timestamps, affected systems, and your preliminary damage assessment. The documentation should be as detailed as possible. Remember it may be used in future legal proceedings or regulatory investigations.
- Incident Response Team Activation - Activate your designated incident response team. This should include IT security, legal counsel, communications specialists, and senior management. Each team member should have clearly defined roles and responsibilities.
- Breach Assessment and Scope Determination - Conduct a thorough investigation to determine the extent of the breach. Identify the type of data compromised, the number of individuals affected, and the duration of the exposure.
- Regulatory Notification Compliance - Follow applicable notification requirements based on your jurisdiction and industry. This includes notifying relevant supervisory authorities within mandated timeframes (such as 72 hours under GDPR). Prepare detailed breach reports with the required information about the incident’s nature and impact.
- Affected Individual Notification - Prepare and send notifications to affected individuals. Include clear explanations of the breach, potential risks, remediation steps taken, and available resources for protection. The notifications should provide specific guidance on the actions victims need to take to protect themselves.
- Evidence Preservation and Documentation - Maintain records of all breach-related activities. This should include system logs, communication records, response actions, and remediation efforts. The documentation is crucial for future investigations, insurance claims, and demonstrating regulatory compliance.
- Remediation Plan Implementation - Based on the findings from your investigation, create a remediation plan to fix the vulnerabilities that led to the breach. This includes patching systems, resetting leaked credentials, limiting access controls, and adding additional security controls to prevent similar incidents.
- Post-Incident Review and Updates - Conduct a review of the incident response process. Identify areas for improvement, both in terms of security controls as well as response procedures. Update relevant policies, procedures, and training programs based on the lessons learned from the breach.
Building a prevention strategy
While properly responding to a breach is crucial, preventing them should be the primary focus.
Despite the common emphasis on user training, technical controls should form the backbone of any effective breach prevention strategy.
Technical controls provide consistent, automated protection that isn’t subject to human error.
Important technical controls that should be in place include:
- Network segmentation to contain potential breaches
- Automated security monitoring and response systems
- Continuous data breach monitoring for leaked credentials and data
- Zero-trust architecture implementation
- Email filtering and Data Loss Prevention (DLP) tools
- Automated endpoint protection
In addition, organizations need to extend their security focus beyond internal systems to include their entire supply chain.
Continuously monitor your third-party security controls to identify vulnerabilities before they’re exploited.
