Every business, no matter how small or big, shares at least one common concern — data security. From a local retailer to a multinational giant, businesses have to deal with highly sensitive information that, if it falls into the wrong hands, may create reputational and financial risks for a business.
The dark side of the digital world even got darker in 2022 as there were at least 1800 data breaches in the United States while 422 million people (worldwide) suffered from the consequences of data leaks or breaches. It is important to note that the number of individuals who became victims of data leaks and breaches in 2021 were 217 million worldwide.
What’s more amazing is that there is so much happening in the cybersecurity industry yet the number of data breaches will increase by almost 50% in 2022.
What are the major causes of data theft? How can businesses minimize security risks, and how can modern-day, cloud-based solutions like dataroom software play their part in making a secure digital world? Let’s find out!
5 major causes of data thefts and leaks
There can be so many reasons behind data leaks. It can be due to technical and manual issues. Here are some common causes of data breaches/leaks.
- Note: data breaches and data leaks are two different things. Data leaks happen due to internal errors, while data breaches are triggered by external hostile activities.
1. Recycled passwords
One of the biggest mistakes that companies and data consumers make is the use of recycled passwords. Employees or data users often use the same password for multiple or all logins. That means if the hackers get login credentials, they may be able to use the same credentials for other logins.
2. Theft of sensitive devices
A stolen device that has access to sensitive information is like a grenade; it can explode at any time. For example, even if the user logs out from a data repository but loses their device, it can still be harmful. That’s because the hacker or the thief may be able to convince the IT support staff with persuasive tactics and get the login details.
3. Use of default passwords
Not changing factory-standard login credentials is another common mistake that employees make. Standard or default login credentials are often publicly known, even to cyber criminals. If users don’t create new login details, the chances of data theft will be high. The same happened in 2016 as the biggest DDos attack ever compromised more than 380,000 devices that were hacked with the help of default passwords.
4. Unnecessary duplication of data
Although things have changed a lot, many businesses still go for decentralized data repositories. That means different offices or branches will have duplicate copies of sensitive information, which increase the chances of data breaches/leaks.
5. Vulnerable data management solutions
It goes without saying that the more you invest in cyber protection, the lesser the chances of data theft. Unfortunately, many businesses overlook the importance of data protection and rely on standard or commonly available, cheaper data management tools.
Best practices for minimizing data breaches
Businesses can minimize data thefts by taking some basic measures and investing in high-end, secure data management tools like virtual data rooms.
“What businesses need to understand is that it is better to invest a little more in a good data management solution rather than paying millions in penalties; data rooms are amongst the safest options for businesses right now,” says Ronald Hernandez, Founder https://dataroom-providers.org/.
Here are some handy data security practices to consider.
1. Strengthen the login process
Weaker, default or recycled passwords are a common reason behind data leaks or thefts. Businesses need to make sure that the data management tools they are using must have a secure login process.
For example, a digital data room has features like multi-factor authorization or two-step verification. Users are required to go through at least two identity confirmation steps to complete the login process, ultimately minimizing the chances of unauthorized entries.
2. Use a central data management system
It isn’t hard to understand that guarding a centralized data management platform like data room software is easier than dispersing one. Using a centralized document repository will make sure there are no or lesser amount of document copies. Employees or management from different branches or offices will be able to access data from the VDR (virtual data room) with ease.
3. Define access roles
It is necessary to define access roles for all employees in the organization according to their roles and responsibilities. Apart from that, businesses need to make sure that nobody can steal highly confidential information. For that purpose, digital data room software gives businesses a wide range of options to limit employees’ access to private data.
Final words
Most of the data breaches are triggered by human error and weaker data protection systems. Employing solutions like digital data room software helps businesses up their cybersecurity game.
Some of the best data room services to consider are iDeals, Ansarada, DealRoom, Merrill, and Intralinks. However, it is essential to conduct your own comparison and research to settle on the most suitable data room solution.
Source: https://www.cryptopolitan.com/best-practices-for-ensuring-the-security-of-shared-data/