[{"@context":"http:\/\/schema.org","@type":"Article","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/05\/data-breach-examples-definition-costs-consequences\/#Article","articleBody":"As we spend more time and money online, the risk grows that a data breach will impact us personally or professionally.\nWaging war against passwords can feel like a game of whack-a-mole. You happily head to a website on your phone after work to do a bit of retail therapy, and BOOM:\n\u201cThis password has appeared in a data leak, which puts your account at a high risk of compromise. You should change your password immediately. Change password on website.\u201c\nTalk about a mood killer. And that\u2019s just on a personal level.\nBusinesses can no longer ignore the cost of data breaches. Let\u2019s set aside our password-change fatigue and look at the hard facts for small businesses and global corporations.\n \nWith data breaches everywhere, customer data management becomes crucial\n   Customer data management best practices allow businesses to fortify their commitment to positive relationships. The potential for growth, in commerce and trust, is massive.  \nWhat is a data breach? What are the different types of data breaches?\nData breach, defined: a data breach exposes private, protected, sensitive, confidential information to an unauthorized person \u2013 or persons.\nIn a data breach, the information and files are viewed, downloaded, shared, and sometimes sold on the black market. Any person, business, enterprise, organization, or government can be at risk of a data breach \u2014 making data security, data privacy, and cyber-security crucial to an ever-growing digital existence.\nThe types of data that get targeted during a vary. Let\u2019s go over what gets stolen and how.\nTypically hackers are not looking to target a specific individual. The end goal is to access a volume of data they can sell in bulk.\nData that frequently gets stolen:\nCustomer PII (Personally Identifiable Information)\nIT\u2014The ability to function at the organizational level\nIdentity Theft\u2014Beyond PII, this unravels to be far-reaching and costly to resolve\nConstitutions of data breaches and significance of data privacy\nA snapshot of \u00a0data breaches and who it impacts:\nStolen Information\u2014Fairly straightforward, can be personal information.\nMalware\u2014Malicious software intended to destroy or damage computers.\nPassword Attacks\u2014Coordinated attacks to break weak passwords and gain personal data.\nPhishing\u2014Attempts to get people to voluntarily reveal private information.\nInsider Threat\u2014Someone with keys to the system and a grudge.\nRansomware\u2014Malware\u2019s nasty cousin, this type of breach aims to lock down crucial data and then demand a ransom. Liam Neeson, we need your help!\nDenial of Service (DoS)\u2014A cyber attack designed to disrupt service.\n \nTypes of customer data: Definitions, value, examples\n   Types of customer data serve distinct purposes. Identity data, descriptive data, attitudinal data, behavioral data defined with examples.  \nWho gets hurt by a data breach, and examples of some of the biggest hacks\nThe answer to \u201cWho gets hurt by a data breach?\u201d is \u201cWho doesn\u2019t?\u201d When a leak occurs, the consequences are vast in scope and duration. In other words, leaks are expensive. leaks require companies to disclose the breach and doubling down on protecting consumers.\nThe industries getting hit the hardest by data breaches and the respective cost per breach are:\nHealthcare: $7.1M\nEnergy: $6.64M\nFinancial: $5.9M\nPharmaceuticals: $5.1M\nTechnology: $5.0M\nExamples of some of the biggest breaches over the last couple of years include:\nHanna Andersson: Customers who made online purchases from the clothing retailer between September and November of 2019, had their names, shipping addresses, billing addresses, payment card numbers, CVV codes, and expiration dates skimmed and placed for sale on the dark web. Hackers installed malicious malware in Point of Sale (POS) systems to skim credit card information.\nFifth Third Bank: The financial giant stated said a former employee was responsible for the exposure of customer names, social security numbers, driver\u2019s license information, and PII, like mother\u2019s maiden name, address, phone number, date of birth, and account numbers.\nMGM Resorts: In February of 2020, MGM stated that the personal information of over 10 million guests of MGM Resorts had PII data posted on a hacking forum. The information included names, addresses, phone numbers, emails, and dates of birth. In July of 2020, researchers said that over 142 million records from former guests at MGM were for sale on the dark web.\nWalgreens: One of the biggest pharmacy chains in the United States said that an error in their mobile app\u2019s SMS messaging feature exposed personal messages sent within the app, names, prescription numbers and drug names, store numbers, and addresses of customers.\nBlackbaud: In February of 2020, a ransomware attack began on the cloud-based fundraising database management vendor for non-profits and educational institutions. The attack wasn\u2019t discovered until May of 2020. Upon getting a ransom request, Blackbaud paid up, then was told that the data had been destroyed. However, sensitive data from over 6 million donors, donors, patients, and community members including names, emails, phone numbers, dates of birth, genders, provider names, dates of service, department visited, and philanthropic giving history were stolen. As with nearly every data breach, months later watchdog organizations stated that there were far more people impacted than initially reported. In September of 2020, the SEC said hackers gained access to unencrypted data that included social security numbers, banking accounts, and credit card\/financial payment information. Blackbaud\u2019s customers and clients continue to suffer from the outcomes of the attack and the consequences of it, including Inova Health, Saint Luke\u2019s Foundation, Spectrum Health, and Northwestern Memorial HealthCare, to name a few \u2013 totaling over 2 million people.\n \nMission critical: Why CMOs are focusing on protecting customer data\n   In the race to compliance, customer trust is the finish line. A data breach can mean massive losses, so CMOs are focusing on protecting customer data.  \nShow me the money: The costs of a data breach\nWe\u2019ve covered the hard costs of a data breach, but what about the other intangibles. How will a data breach impact the workforce, the business, and beyond?\nAmong the most significant issues related to a data breach are:\nRevenue\u2014Breaches cost bank.\nReputation\u2014Buildings can be rebuilt. Reestablishing trust is trickier. And more expensive.\nLegal\u2014The ramifications spider out, touching clients, vendors, partners, and even employees.\nOperational\u2014Does the breach shut down a company? Maybe, or perhaps it reveals that the existing standards and protocol are not practical.\nLost Business\u2014Business that might have been in the pipeline will be hampered by the energy put toward recovering from the breach. Pre-breach marketing and outreach are obsolete.\nThe long-term consequences of a data breach also depend on how quickly businesses can rally. The time it takes is twofold: the time to identify the breach and then the time to fix it. For the healthcare industry, recovering from a breach can take between 280-329 days. The financial industry is speedier at 233 days, but that is still a long time.\nBest practices for data leak prevention\nThe ugly truth is that hackers and data breaches aren\u2019t going away.\nYou can start minimizing your risk, however.\nHere are a few things to consider as you build your defense for your data:\nGet your cloud tools in order\u2014multiple cloud-based marketing tools can create an Achilles heel, opening you to security threats.\nConsent guidelines\u2014Establishing comprehensive consent guidelines that are enforced in your system will protect data. Known consent dictates action.\nUnified profiles\u2014The tighter you manage and consolidate your customer data, the easier it is to protect.\nCommit to vigilance\u2014The future will only bring new risk. Prepare now so that your process can mature and evolve.\nThe best companies have always valued their customers; it\u2019s natural and positive reciprocity. Moving forward, businesses must make serious plans to protect customer data, because, at the end of the day, the most costly aspect of a breach is the potential loss of customer trust, which isn\u2019t easily restored \u2013 if ever.\nWhat are the data privacy issues keeping execs awake at night? We\u2019ve got them \u2013 and the solutions \u2013 HERE.","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/05\/data-breach-examples-definition-costs-consequences\/#Article_Person","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/05\/data-breach-examples-definition-costs-consequences\/#Article_Person_ImageObject","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/uploads\/2020\/01\/Amanda-Magee-150x150.jpg"},"name":"Amanda Magee","sameAs":["https:\/\/twitter.com\/AmandaMagee","https:\/\/www.linkedin.com\/in\/amandamagee\/"],"url":"https:\/\/www.the-future-of-commerce.com\/contributor\/amanda-magee\/"},"dateModified":"2021-12-29T03:06:22+00:00","datePublished":"2021-05-05T11:43:44+00:00","description":"Discover data breach examples, consequences, and costs, as well as security measures you can take to prevent the exposure of data to hackers.","headline":"Data breach examples, definition, consequences, costs","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/05\/data-breach-examples-definition-costs-consequences\/#Article_ImageObject","height":"630","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/05\/DataBreach_1200x375-1200x630.jpg","width":"1200"},"mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/05\/data-breach-examples-definition-costs-consequences\/","name":"Data breach examples, definition, consequences, costs","publisher":{"@type":"Organization","@id":"https:\/\/www.the-future-of-commerce.com\/","additionalType":"https:\/\/www.wikidata.org\/wiki\/Q1193236","description":"Relevant, timely information & analysis on commerce trends, both consumer-facing and B2B.","logo":{"@type":"ImageObject","@id":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1","height":"96","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1","width":"500"},"name":"The Future of Customer Engagement and Experience","sameAs":["https:\/\/podcasts.apple.com\/us\/podcast\/a-call-for-a-better-experience\/id1479742201","https:\/\/twitter.com\/FutureOfCEC","https:\/\/www.linkedin.com\/groups\/4844282","https:\/\/www.the-future-of-commerce.com\/feed\/"],"url":"https:\/\/www.the-future-of-commerce.com\/"},"url":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/05\/data-breach-examples-definition-costs-consequences\/#Article"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2021","item":"https:\/\/www.the-future-of-commerce.com\/2021\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"05","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/05\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"05","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/05\/\/05\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Data breach examples, definition, consequences, costs","item":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/05\/data-breach-examples-definition-costs-consequences\/#breadcrumbitem"}]}]