How to Protect Your Business from a Data Breach


June 9, 2024 | By California Consumer Protection Attorneys | Kazerouni Law Group, APC.
How to Protect Your Business from a Data Breach

In today’s digital age, data breaches have become common and can have severe consequences for individuals and businesses alike. In the event of a data breach, companies need to act quickly and decisively to protect personal injury attorney and minimize the potential damage. Unfortunately, hackers often stay one step ahead, no matter how many steps businesses take to improve their cybersecurity. Companies may use cybersecurity methods that date back a decade, while malign actors use some of the latest techniques to steal a business’ data.

There has been an overall increase in cyberattacks, involving all types of actors, ransomware attacks, and data thefts. These attackers will often sell the personal data they stole on the dark web to the highest bidder. Then, customers must deal with the effects, including potential identity theft.

There are an average of 2,200 cyberattacks daily, adding up to roughly 800,000 per year. In fact, 54 percent of businesses report being victims of an attempted cyberattack each year. Cyberattacks can cost world economies and businesses approximately $10 trillion annually. The average data breach will cost over $4 million, but there are far more significant impacts for a company. Although hackers can use advanced methods, businesses can reduce the chance of a data breach if they take the appropriate measures.

Any consumers who have suffered identity theft or privacy violations due to data breaches should consult a data breach lawyer immediately.

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Businesses Should Assess the Specific Risks of a Data Breach

Alert system hacked popup on screen, warning of a spam virus and internet security threat, highlighting cyber security and compromised information.

Data breach prevention begins with understanding a business’s specific risks. Companies should conduct regular risk assessments to identify potential vulnerabilities and should also identify critical data that they may need to take additional steps to protect.

Some common risks that increase the chances of a data breach include:

  • Outdated passwords that may be easy for hackers to guess and use
  • Obsolete systems and software systems
  • Inadequate employee training to spot potential plots to steal personal data

A business should continuously assess its risks and where it stands at any given moment. Then, it should conduct regular audits of its systems and think like malign actors. Once a business understands its vulnerabilities, it can develop plans to prevent data breaches.

Implementing Security Measures to Protect Data

Businesses may take the following measures to protect data and avoid breaches:

  • Encryption of sensitive data—Even if hackers can gain access to a network where they may potentially steal data, they may be unable to use it because it is not readable. 
  • Regular software updates and patch management – Since hackers often gain access to a network through outdated software, a business must develop and install patches to combat some of the latest methods that hackers are using. 
  • Firewalls and antivirus software—Hackers often manage to gain access to a system by installing various malware, allowing them to take complete control. Updated antivirus software can prevent that. Firewalls can also help prevent unauthorized access to a network. 
  • Secure Wi-Fi networks—Hackers often can enter a system when they access a business’s Wi-Fi network. A company should secure and shore up its Wi-Fi to consumer protection law against unauthorized access.

Administrative Safeguards Against Data Breaches

Close-up of business people taking notes during a meeting.

Businesses can also take administrative measures that can help them increase network security and prevent data breaches. These steps may include:

  • Developing and Enforcing Security Policies—The bedrock of data protection is policies and measures that employees must follow when using the company’s systems and protecting data. If there is a data breach, regulators and lawyers may request the policies and procedures to see if the company followed them in practice. 
  • Training Employees—Individual employees need to understand the tactics hackers use to gain access to systems, such as phishing emails. All it takes for a major data breach is one untrained employee who opens an email they should not have. 
  • Implementing Access Controls – Only some employees need access to every system. Businesses should restrict access to specific sensitive systems to necessary personnel only.

Developing a Data Breach Response Plan

Sometimes, hackers manage to overcome defenses and gain access to a system. Businesses need to have a response plan in place that allows them to act quickly. Employees must have defined roles regarding what they will do during a data breach.

The first step is to identify the data breach and the extent of the compromised information. Multiple unauthorized attempts to access a system may indicate that a data breach is currently occurring.

The business should also pinpoint the location of the data breach and take quick action to prevent any further breaches. After learning of the breach, what the company does can impact the scope of its legal group liability and the fine it may face. If a business is slow to react and does not take appropriate response measures, it can face additional consequences.

Then, a business needs to take steps to launch a full investigation into the breach to learn what happened. It should document each investigation step because regulators or the court may ask it to show its work.

A business should take swift mitigation measures to minimize the breach’s impact. It should immediately change passwords and work to clean the system of any malicious code. Removing malware from the system will take considerable resources if there is a significant data breach.

Finally, the business must notify the data owners of the breach and “come clean” about the extent of the stolen data. Federal and lawsuits dictate the timeframe in which a business must inform owners of a breach.

Insurance and Financial Protection 

In addition to actual measures to protect their systems, businesses also need to invest in insurance to cover themselves in the event of a data breach. Insurance companies have primarily removed cyber and data breaches from general liability policies. As a result, businesses will need to purchase a particular rider, or they will need to buy a dedicated policy to cover cyber breaches. Then, they will need to review the exact language of the policy to ensure that it has broad potential coverage for many types of cyber breaches.

Businesses can face major legal liability when they are data breach victims. They must protect their customers’ data, and they can have to pay in various ways when hackers steal private information. For example, one of the largest data breaches of all time was the massive data theft from Equifax. The company had to pay $425 million in a settlement agreement, including the cost of credit monitoring for people with compromised data.

When You Can File a Lawsuit for a Data Breach

Wooden hammer, files on the judge table

It can be challenging for someone to file a lawsuit for a data breach. It is not enough to prove that the company compromised your data; you need something more to have the standing to file a lawsuit in court. It is sufficient to show a substantial risk of future harm. Then, you may gain the standing that can get you into court.

Of course, plaintiffs can file lawsuits if they have suffered actual harm from a data breach, such as identity theft. If the hackers misused your data, it is grounds for a lawsuit. However, there is also the potential that you can sue the company before the hackers misuse your data. In other words, you do not need to have been a direct victim of identity theft to have a legal right to financial compensation for stolen information in a data breach.

Damages in a Data Breach Lawsuit

If you have been the victim of a data breach, you deserve the following in damages:

  • Any actual costs of charges made to you or credit run up in your name
  • Any costs for damage to your credit, including actual losses when you cannot qualify for a loan
  • Emotional distress from knowing that you have compromised personal data
  • Payment for the time that you spent investigating the theft of your data and dealing with the fallout

You can file a data breach lawsuit as either an individual case or a class action lawsuit if many victims have all suffered the same exact harm. Many people file significant data breach cases as class action lawsuits. However, you can always file your own lawsuit and not join the class.

If you are a data breach victim, it is crucial to hire a data privacy attorney to guide you through the legal process and navigate the complex landscape of data breach litigation.

Learn from the Past: Significant Data Breaches in Recent History

Hacker illegally receiving money online, holding cash from a laptop. Concept for computer hacker, network security, cyber attack, and virus.

When hackers steal customers’ data, the business can face significant financial and reputational effects. Not only is it liable in a lawsuit, but it can also lose valuable business when angry customers choose to turn away.

For example, the following businesses experienced significant data breaches that harmed them.

Some also experienced enormous drops in their share prices.

  • T-Mobile experienced a large data breach in which hackers stole 76 million customers’ information.
  • Yahoo faced significant legal action when over three billion accounts had personally identifiable information stolen.
  • Two years ago, malicious actors hacked into 30,000 different organizations, from small businesses to local governments, when they exploited a Microsoft Exchange flaw that allowed them to gain unauthorized access to emails. They controlled the systems for almost three months. 
  • Hackers exposed 533 million Facebook users’ data to the public internet. Two years later, bad actors posted all the data for free in the public realm. 
  • An attack on Marriott International’s systems resulted in the hackers stealing the personal data of 500 million customers. This data included sensitive personal identifying information, such as passport numbers and dates of birth. The hackers also attempted to take credit card numbers, but luckily, the company had encrypted much of this data. 

All of the above threatened consumer relations with these major corporations. Data breaches are enormous headaches for businesses in many ways, and they must do everything in their power to prevent them.

Businesses can take numerous steps to prevent data breaches (or at least to fortify their own

security to make it harder for hackers to gain access to sensitive information). It starts with adequately investing in people and technology to strengthen their systems. Planning ahead of time can put systems in place that can stop hackers in their tracks.

Contact a Data Breach Attorney to Discuss Your Case

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If you have been the victim of a data breach, you must contact a consumer protection lawyer today. Your data breach lawyer can help you review your legal options and advise whether you have a potential lawsuit against the company that was supposed to protect your data. If so, they can file a lawsuit on your behalf.

Additionally, a data breach attorney can assist you in understanding the impact of the data breach on your personal and financial well-being. They can evaluate the potential damages you may deserve, such as reimbursement for losses, credit monitoring services, and compensation for emotional distress. With their experience, data breach attorneys can negotiate with the responsible parties and fight for your rights in court, if necessary.

Furthermore, navigating the legal process can be overwhelming, especially if you are unfamiliar with the intricacies of data breach litigation. Hiring an attorney allows you to leave the legal complexities to an experienced professional. They can handle the paperwork, communicate with the responsible parties on your behalf, and ensure your case deserves the attention it deserves.

It does not cost you anything to consult with a data breach attorney; you do not need to pay them anything when they take your case. The attorney only gets paid if you win your case, and then they get a percentage of your settlement or jury award. If you do not win your case, you will not have to pay your data breach lawyer for the time and services. Thus, there is no risk to you in hiring a data breach attorney.

Hiring an attorney after experiencing a data breach is crucial to protect your rights, understand the impact, and navigate the legal process effectively. If you find yourself in such a situation, contacting a trusted attorney specializing in data breach litigation is essential. They will provide the necessary guidance and support to help you recover from the breach and seek the compensation and justice you deserve.

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