Data breaches, explained

With cybercrimes on the rise, safeguarding personal data is more important than ever. There have been 2,116 data compromises as of September 2023, a 17% increase compared to 2022.¹ The result? An estimated 233 million Americans have been affected.¹

So what can individuals do to better protect themselves? Learn about data breaches and how they can affect everyday people, along with potential considerations to stay protected and make secure online payments.

What is a data breach?

A data breach — also known as a cyber breach — may occur when unauthorized parties successfully access and obtain sensitive or confidential information, including personal, financial, or corporate data. For individuals, this may include Social Security numbers, bank account information, or healthcare data.²

Potential causes of data breaches

There are various causes for data breaches, all of which typically involve a general breach in security due to a cyber attack. Here are some examples:

• Ransomware attacks: Cybercriminals encrypt data and demand a ransom for decryption keys, often threatening to leak the data if the ransom isn't paid.

• Social engineering: Attackers manipulate people through social interaction to gain unauthorized access to systems or sensitive data. An example is phishing, in which deceptive emails or messages trick someone into revealing sensitive information or downloading malicious software.

• Brute force attacks: Hackers attempt to gain access by systematically trying all possible password combinations until they find the correct one.

• Malware: Malicious software infects systems to steal, encrypt, or manipulate data, often without a person’s knowledge.

• Physical theft or loss: Physical devices like laptops, smartphones, or storage media containing sensitive data are stolen or lost.

• Third-party breaches: Breaches at third-party vendors, service providers, or associated companies can expose the personal data of many individuals.

• Human/IT errors: Attackers exploit known vulnerabilities in software or hardware that have not been updated or patched.

Potential impact of a data breach on individuals

Data breaches may lead to immediate consequences like financial losses, identity theft, invasion of privacy, reputational damage, and emotional distress. In the long term, individuals may continue to experience financial repercussions, ongoing privacy concerns, trust issues with organizations, and potential legal consequences.

The impact of a data breach ultimately depends on what information was stolen, what was done with the information, and any potential follow up steps taken to secure one’s related accounts.

Data breach safeguards

Wondering how to safeguard personal data in the event of a cyber breach?

Here are some potential ways to help protect against data breaches:

• Enable two-factor authentication (2FA): Enable 2FA whenever possible to add an extra layer of security to accounts in case a criminal gains authorized access to one’s password.

• Regularly update software: Keep operating systems, applications, and antivirus software up to date to patch known vulnerabilities.

• Be cautious with emails and links: Avoid clicking on suspicious email links or downloading attachments from unknown sources. Be skeptical of unsolicited emails asking for personal or financial information.

• Browse with secure Wi-Fi networks: Avoid public Wi-Fi for sensitive activities or use a virtual private network (VPN) to encrypt the connection.

• Freeze credit report: Consider freezing one’s credit with credit reporting agencies to prevent unauthorized access.

• Review online accounts often: Periodically review online accounts for unusual activity.