Complete Guide To Data Security: Comply With Regulations & Prevent Data Breaches

Introduction

To efficiently prevent data breach attempts, it’s imperative to understand the whole structure of a data breach event. 

Did You Know? 

Companies that experience a data breach can lose up to 7.2% of their market value. 

Though 45% of breaches are because of external malicious activities, 22% are usually credited to casual errors within the company. This percentage has a lot of sensitive data falling prey to the wrong people on the internet. 

However, it’s best to understand data security is much more than protecting data against hackers. You need to stay compliant, too while protecting information. 

Let’s get into the blog to understand the concept of data security better, with the right ways to prevent data breaches and comply with regulations. 

Section 1: What is Data Security

The concept of data security and its importance

Data security protects data from :

• Unauthorized access
• Disclosure
• Modification
• Destruction

It is a crucial aspect of information technology (IT) and plays a vital role in ensuring the:

• Confidentiality
• Integrity
• Availability of data for an organization

Data security is important for several reasons, including:

1) Protecting Confidential Information

2) Compliance with Regulations

3) Building Customer Trust

4) Reducing Costs by Minimizing Data Theft

5) Minimizing the Risk of Cyberattacks and Data Breaches

Classifying Data Breaches: An Overview of the Various Types

Here are some common types of data breaches: 

1. Malware Attack: In this type of attack, a person receives a simple email to execute a file that the user clicks while logged into the system. It basically involves tricking a user into installing malicious code into their system to seal the data. 
2. Phishing Attack: In this type of attack, a malicious actor poses as a friendly entity to trick the user into giving them unauthorized data. It can be a direct play for certain, a technique of earning a password, or other means of entry into the system the hacker uses to search for data. 
3. Brute Force Attack: In this basic kind of attack, the hacker can build a bot that guesses common passwords throughout the day. The bot considers several possibilities to get the right answer. 
4. SQL Injection Attack: In this kind of attack, the hacker sends an SQL query to the database, employing input data from the client to the server and adds SQL commands to the data plane input. 

Now, let’s delve deeper into the

Section 2: Complying With Regulations

Data Security Regulations: An Overview

Data security regulations are in place to ensure that an organization’s systems and networks are secure from unauthorized access or use.

These regulations can vary by:

• Industry
• State
• Country

But they generally include requirements for implementing data security measures and technologies and reporting incidents when they occur.

Some of the major regulations related to data security include:

1) The General Data Protection Regulation (GDPR)

This regulation applies to all businesses that handle the personal data of EU residents. It sets guidelines for :

• Collecting
• Processing
• Storing personal data

2) Federal Information Security Management Act (FISMA)

This regulation applies to all federal agencies within the United States and sets guidelines for:

• Managing
• Protecting
• Monitoring their information systems

3) The Information Technology Act, 2000

This Act applies to all businesses in India that handle digital information and sets guidelines for securing their systems and networks.

The act aims to facilitate:

• E-commerce
• Promote e-governance
• Enhance the security and confidentiality of electronic data in India.

The act was amended in 2008 to address:

• Data protection
• Privacy
• Cyber security issues.

Now let’s understand

Consequences of failing to comply with the above data security regulations

1)The General Data Protection Regulation (GDPR)

Failure to comply with GDPR can result in significant fines and penalties.

Organizations can be fined up to 4% of their global annual revenue or €20 million.

The company’s reputation can also be damaged, leading to:

• Loss of business and customers
• Reduction in revenue

2) Federal Information Security Management Act (FISMA)

Failure to comply with FISMA can result in:

• Financial penalties
• Suspension or revocation of government contracts
• Damage to an agency’s reputation

3) The Information Technology Act, 2000

Failure to comply with this act can result in:

• A fine (up to Rs 5 lakh) and/or
• Imprisonment (up to 3 years)

It can also lead to business loss, reputation damage, and inability to participate in government contracts.

Now let’s take a look at

Top Companies Data Breach Fines, Penalties, and Settlements

1) Didi Global

Didi Global, a Chinese ride-hailing company, has been fined $1.19 billion by the Cyberspace Administration of China for violating the:

• Nation’s network security
• Data security
• Personal information protection laws

Didi Global has accepted the decision after a year-long investigation into its security practices and suspected illegal activities.

2) Amazon

In 2021, Amazon faced one of the biggest fines, 877 million U.S. dollars, issued by Luxembourg for GDPR violations concerning cookie consent. It was the second-biggest data breach fine noted in that month. However, Amazon appealed the fine, mentioning that no such breach or exposure related to customer data had happened. 

3) Instagram

In 2022, Instagram faced a 403 million U.S., dollars fine from Ireland’s Data Protection Commissioner in regards to violating kids’ privacy stated under GDPR. The complaint involved the public availability of minors’ phone numbers and email addresses when they upgraded to business or creator accounts. Though Instagram disagreed with the way the fine was calculated and stated that the final decision was taken after the platform’s privacy and security settings were already updated.

4) Meta (Facebook)

The Irish DPC fined Meta €265 million for compromising 500 million users’ personal information.

The inquiry focused on Facebook, Messenger, and Instagram tools and compliance with GDPR obligations.

5) Uber

In 2016, the popular ride app, Uber faced a massive breach of 600,000 drivers and 57 million user accounts. However, they did not report the issue but paid the perpetrator a huge amount of $1000,000 to stay under the light. Due to such actions, the company was fined $148 million in 2018.

Innovative Solutions To Data Security Challenges For IT Managers

1) Lack of visibility

Without actual visibility into the data flows and processes, it can be difficult for businesses to ensure how employees are accessing and using company data.

This lack of visibility can lead to:

• Data Breach
• Unauthorized Access
• Data Leakage

Solution 1) Opting for employee monitoring software

Installing employee monitoring software can provide visibility into how employees use company data and ensure that potential risks are identified quickly.

The software can also help:

• Detect potential malicious activities
• Track URL visited and app usage
• Monitor shared resources
• Track access to confidential information

This helps businesses comply with regulations and prevent data breaches by providing the necessary visibility, monitoring, and prevention capabilities to protect sensitive data.

2) Increased risk of insider threats & lack of accountability

As companies adopt cloud technologies and remote work, the risk of insider threats has increased.

This can be due to a lack of accountability and monitoring of employees with sensitive data access. This can lead to :

• Data manipulation
• Unauthorized access
• Theft of corporate data and intellectual property

Solution 2) Use real-time Screenshot capturing software  

Real-time screenshot-capturing software can help businesses proactively detect and prevent insider threats by providing visibility on how employees use corporate data.

The software also allows teams to monitor employee activities, such as:

• Taking screenshots of user activities at specified intervals
• Tracking remote desktop activities
• Recording keystrokes and mouse movements

This helps identify potential insider threats and holds employees accountable for their actions, which can reduce the risk of malicious behavior.

Challenge 3: Slow incident response

Organizations need to be able to respond quickly and efficiently to a data breach or other security incident.

But this can be difficult if they do not have real-time reports of security incidents leading to:

• Delayed response time
• Increased damage to sensitive data
• Reputation damage

Solution 3) Use real-time alerting and reporting software

Real-time alerting and reporting software can help organizations detect and respond to security incidents quickly by generating reports such as:

• Time & Activity Report
• Weekly Report
• App & URL Reports

These reports can provide visibility into potential threats, enabling IT personnel to:

• Rapidly identify
• Mitigate
• Resolve the incident

Challenge 4: Person authentication-  

As organizations extend access to more users and external sources, it can be difficult for IT personnel to verify an individual’s identity.

It can lead to:

• Unauthorized access to sensitive data
• Increased risk of malicious activities
• Data breaches due to user impersonation

Solution 4) Use attendance with selfie management software

Attendance with selfie management software can help organizations verify an individual’s identity and ensure that only authorized personnel have access to sensitive data.

The software uses facial recognition technology to verify the identity of employees and external users before granting access to company resources.

This reduces the risk of:

• Unauthorized access
• Malicious activities
• Data breaches due to user impersonation

Furthermore, the software can:

• Track employee attendance
• Monitor work hours

It will be quicker and more seamless for companies to comply with relevant labor regulations. It further ensures employees work as per the requirements. 

Thus, these were some of the primary challenges faced by most IT managers and the advanced solutions that can be implemented to overcome them. 

However, the prime concern is where to begin when you think about using data security measures. 

That’s exactly where you need Workstatus!

Workstatus is an employee monitoring software that can help organizations in this regard. It provides real-time visibility into:

• Employee activities
• Real-time operations
• Usage of applications

With Workstatus, IT professionals can:

• Monitor employee activities
• Track website visits & app usage
• Analyze productivity
• Ensure data security
• Secure confidential information

Helping companies protect their organization’s sensitive data and comply with relevant regulations.

So, there you have it, a comprehensive guide to data security.

Closing Thoughts 

All in all, data security is one of the vital aspects of any company or business that can’t be ignored if you want a successful venture. 

Regardless of the kind of cyber attack you may experience, the best step of defense is quality identity and proper access management. Moreover, quality access control is essential to keep a data hack away! 

Next, you must invest in reliable tools like Workstatus with advanced data security features to protect your sensitive data. 

Thus, don’t wait until a breach happens; take measures immediately. Security awareness is a constant, ongoing process of understanding real-world attack situations. 

FAQs

Q: What should I do if a data breach occurs?

A: If a data breach occurs, you should

• Immediately notify the affected individuals and authorities
• Cause and scope of the breach
• Contain the damage and prevent further access
• Implement measures to prevent future breaches

Q: How can I ensure compliance with data security regulations?

A: To ensure compliance with data security regulations, you should

• Conduct regular risk assessments (using monitoring software)
• Develop and enforce security policies and procedures
• Train employees on security awareness
• Implement technical and administrative controls
• Regularly audit and report compliance

Q: What are some other tools to prevent data breaches?

A: To prevent data breaches, you can implement a combination of technical controls, such as

• Firewalls
• Antivirus software
• Intrusion detection systems

Administrative controls, such as

• Security policies
• Risk assessments
• Incident response plans