Data Security Mistakes That Could Cost You

Data security is crucial for any business. Poor data security practices can lead to devastating consequences like data breaches, lawsuits, and loss of customer trust. As a business owner, it is critical to understand the common data security mistakes to avoid and how to implement robust data security protocols. In this article, I will provide an in-depth look at the major data security mistakes that could prove costly for businesses.

Not Encrypting Sensitive Data

The Risks

One of the biggest data security mistakes is failing to encrypt sensitive customer and business data. Encryption converts information into an unreadable format using encryption algorithms and keys. Encryption is essential for protecting sensitive data like:

• Credit card numbers
• Social security numbers
• Bank account details
• Medical records
• Intellectual property

Without encryption, this kind of sensitive data is vulnerable to attackers.

If unencrypted data is compromised in a breach, the business is obligated to disclose the incident and face regulatory fines, lawsuits, and loss of customer trust. For example, the 2017 Equifax breach exposed highly sensitive information of 143 million customers due to lack of encryption. This breach cost Equifax close to $1.4 billion.

Best Practices

• Identify all sensitive customer data your business stores and transmits.
• Implement encryption using robust algorithms like AES-256 for data security.
• Encrypt data in transit over networks and at rest in databases and servers.
• Use trusted encryption tools and key management protocols.
• Encrypt sensitive data stored on laptops, phones, removable media, and the cloud.

As a best practice, assume that all sensitive data must be encrypted. Regularly audit encryption practices to ensure optimal data security.

Using Outdated Software with Security Risks

The Dangers

Most cyber attacks exploit vulnerabilities in outdated, unsupported software that remains unpatched. Examples of vulnerable software include:

• Operating systems like Windows 7 or old versions of Mac OSX.
• Old web/database servers like Apache, MySQL.
• Unsupported apps and browsers.

Cybercriminals target known vulnerabilities in unsupported software to gain backdoor access and steal data. For instance, the WannaCry ransomware outbreak in 2017 exploited vulnerabilities in outdated, unpatched Windows OS versions.

Neglecting to update and patch software creates massive security holes that put customer data at risk.

Best Practices

• Maintain a software inventory to track versions across systems.
• Monitor vendor notifications about software updates and security patches.
• Test patches/updates adequately before deployment.
• Prioritize patching known vulnerabilities and legacy systems.
• Sign up for automatic updates for apps and operating systems.
• Retire outdated operating systems like Windows 7 in favor of modern ones.
• Replace end-of-life software that is no longer supported.

Regular software updates and patching of security flaws is essential to prevent exploits.

Not Using Multi-factor Authentication

Where it Creates Risk

Multi-factor authentication (MFA) requires users to present two or more credentials before system access. Relying solely on passwords for authentication exposes systems to credential stuffing, brute force, and password spray attacks. Other risks include:

• Weak and reused passwords being easily guessed.
• Employees falling for phishing attacks and giving away passwords.
• Password theft via keylogging malware or data breaches.

With only passwords, an attacker gaining access to a single employee’s credentials could breach the entire corporate network.

Implementing Multi-factor Authentication

Adding a second layer of verification with MFA significantly enhances security:

• Reduce password risks by needing an additional factor beyond passwords.
• Even if passwords are compromised, accounts stay secure.
• Blocks automated credential attacks.
• Employees protected from phishing attempts.

Ideally, enable MFA using options like biometrics, security keys, OTPs, etc. for all sensitive data access and company logins. Limiting MFA to just accounts like email leaves major security gaps.

Taking a minimalist approach to MFA security can lead to disastrous breaches.

Not Monitoring for Security Incidents

The Need for Monitoring

Many breaches occur because security incidents go undetected for months. Lack of visibility into systems enables attackers to steal data over prolonged periods. Reasons businesses fail to detect breaches include:

• No processes in place to monitor for potential incidents.
• Logs and security data not aggregated from all systems.
• Lack of threat intelligence on emerging attack trends.

How to Improve Monitoring

Robust security monitoring is essential for early breach detection. Steps to take include:

• Send system, network, app logs into a security information and event management (SIEM) system.
• Correlate and analyze security data to flag anomalies indicative of threats.
• Monitor endpoints and infrastructure for signs of compromise.
• Leverage threat intelligence feeds to stay updated on current threats.
• Establish processes for security teams to review logs and alerts.
• Set up automated alerting for priority threats.

Vigilance and proactive monitoring is key to identifying and responding to security incidents before they become megabreaches.

Not Controlling Employee Access

Where Overprovisioning Causes Risk

Many companies overly provision employee access privileges and permissions without reviews. This creates several risks:

• Employees gaining more access than needed for their roles.
• Former employees retaining access after leaving the company.
• No processes to revoke access when employees change roles or leave.
• Difficulty monitoring anomalous access without access controls.

Attackers exploit overprovisioned access to gain a foothold and move laterally within systems. The Capital One breach in 2019 is one example where this security gap led to data theft.

Best Practices

Securing employee access requires several measures:

• Least privilege access – Only provide the access needed for an employee’s job role.
• Promptly revoke access when an employee leaves or changes role.
• Review access regularly to trim unnecessary permissions.
• Implement access request ticketing for access grants and revocation.
• Automate access provisioning/deprovisioning using identity and access management systems.

Controlling access is imperative to limit insider and external threats.

Failing to Secure Endpoints

Where Endpoints Introduce Risks

Endpoints like workstations, laptops, mobile devices are a leading source of data breaches. Threats include:

• Malware infiltration via phishing, drive-by downloads.
• Unsecured devices being lost or stolen.
• Lack of drive encryption allowing data theft.
• Poor access controls providing attackers an entry point.

Attackers often breach networks by compromising weakly secured endpoints.

Adequately Securing Endpoints

Robust endpoint security is a multifaceted process:

• Install antivirus/anti-malware tools on all endpoints.
• Enable firewalls and heuristics to block unknown threats.
• Encrypt drives/devices to prevent data loss.
• Secure boot processes using UEFI and BIOS passwords.
• Establish strong remote access controls.
• Provide endpoint detection and response (EDR) for advanced threats.

Securing endpoints is an ongoing process requiring constant vigilance.

Not Securing the Email Environment

Where Email Creates Risk

Email gateways into networks make messaging environments a prime target for attackers. Vulnerabilities include:

• Phishing attacks to steal credentials and spread malware.
• Business email compromise (BEC) scams impersonating executives.
• Spam emails delivering dangerous links and attachments.
• Malware infections of end user devices via email.

These email-borne threats bypass traditional perimeter defenses to breach networks.

Steps to Secure Email

A layered approach is required to secure messaging environments:

• Implement DMARC for domain spoofing prevention.
• Enable SPF and DKIM for email authentication.
• Filter emails via content, behavior, and reputation.
• Block dangerous attachments and quarantine malware.
• Use sandbox environments for safely testing suspicious emails.
• Train employees to identify business email compromise scams.
• Encrypt email to prevent snooping of sensitive data.

Vigilance in securing email can stop many external and insider threats.

Failing to Create a Recovery Plan

The Need for Recovery Plans

Many businesses do not consider disaster recovery until after a disruptive event like ransomware or a natural disaster. Lack of preparation leads to:

• Prolonged downtimes that impact operations and revenue.
• Permanent data loss without backups.
• Inability to maintain continuity for business-critical functions.

Without plans in place for response and recovery, businesses risk catastrophe.

Steps for Disaster Recovery Preparedness

A recovery plan is vital to minimize disruption:

• Keep regular backups of critical data, applications, and systems.
• Have an incident response plan for attacks like ransomware.
• Enable high availability with redundancy for critical infrastructure.
• Distribute backups offsite in multiple locations.
• Regularly test and update disaster recovery processes.
• Document recovery procedures with roles and responsibilities.

With strong contingency planning, companies can weather disruptive events.

Ignoring Compliance Requirements

Where Non-Compliance Causes Risks

Industry and government regulations contain cybersecurity provisions organizations must adhere to. Neglecting compliance leads to:

• Fines and legal penalties for non-compliance.
• Lawsuits and liability if breaches occur.
• Loss of certifications or accreditation.
• Reputational damage and loss of customer/partner trust.

Some examples of relevant compliance frameworks include PCI DSS, HIPAA, SOX, GLBA, CCPA/CPRA, and GDPR.

Achieving Compliance

Maintaining compliance involves several steps:

• Know all relevant regulations for your industry and locale.
• Evaluate compliance posture relative to requirements.
• Assign ownership internally for compliance controls.
• Implement required policies, technologies, controls.
• Audit regularly via internal and third-party assessment.
• Remediate any gaps identified during audits.
• Formalize processes for sustaining compliance.

Non-compliance poses severe consequences, so continual adherence to relevant regulations is essential.

Final Thoughts

Robust cybersecurity is crucial for avoiding the costly mistakes discussed in this article. Take proactive steps to evaluate and enhance defenses across these areas:

• Encryption of sensitive data
• Software update processes
• Multi-factor authentication
• Monitoring for threats
• Access controls
• Endpoint security
• Email security
• Disaster recovery
• Compliance management

Staying vigilant requires regularly reviewing the evolving threat landscape for new risks that demand attention. By avoiding common data security pitfalls, businesses can operate with resilience and adapt to cyber threats.