Why Every Company Data Breach Is a Scam Risk for You

Occasionally, you’ll hear of another major company that’s suffered a data breach. If you have even a randomly used account created on their site, you should be concerned not only for the loss of personal information, but also for the scams that might be heading your way. In this article, we’ll be looking at the dangers of a company data breach for its users.

The Company Data Breach – Bad for the Business

Let’s start with the damage to the company itself. A data breach represents a huge loss, not just in terms of what is stolen, but also in the financial implications. A company faces massive expenses in resecuring things, internal investigations, and getting things back on track.

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Then there are the damages to be paid out and lawsuits that might be filed by connected parties. In some regions like the EU, GDPR stipulates either a 20 million Euro ($23 million) fine or 4% of global annual turnover, whichever is higher, as punishment. Companies also have to report the breach to the data protection authority within 72 hours.

Why Breaches Happen

A data breach can have many causes, not all nefarious. The major causes are:

Human Error – Employees accidentally sending the wrong files, using weak passwords, downloading malware by mistake, and so on
Malicious Insider – Disgruntled employees sabotaging the company deliberately
External Actors – Hackers carrying out a deliberate attack on a company and its network

What’s Stolen

In the digital age, information is a highly valuable commodity. Data breaches can produce a goldmine of personal details. This makes companies and sectors, particularly healthcare, finance, retail, tech, and government, particularly susceptible to hacking attempts. In the event of a breach, here’s what’s at risk:

Trade secrets, confidential insider information, political details, and other classified material
Personal information of users, which includes drivers’ licenses, medical history, contact details, social security numbers, and banking details

What Happens to Stolen Data?

Here’s where the concern comes in: average users caught in a data breach. The information stolen can put you at risk. The information is sold by hackers on the Dark Web for others to use or could be used by themselves. Here are a few things your stolen information can be used for:

Credentials, especially login ones, can be used to perpetrate further attacks
Phishing attempts in various forms
Social engineering, such as scamming friends and family through your personal details. This is only getting more convincing through AI
Computer logins for ransomware attacks
Hacked or cloned social media accounts

Even if you don’t see any consequences immediately, keep in mind that your data can be sold and resold down the line. Even if used once, there’s always the chance it’ll be used again.

How to Stay Safe

With any data breach, there’s only so much you, as a user, can do. You may not be able to prevent the attack, but you can minimize the damage caused:

Change passwords – In the event of a breach, change all your passwords connected to the hacked account immediately.
Have multiple passwords – One password across multiple sites might be easy to remember, but it is easy to exploit. Keeping multiple passwords is a must.
Enable Two Factor Authentication – 2FA enables an extra layer of security to any account. Wherever possible, ensure your accounts have an extra login step.
Freeze Credit – If your banking details have been exposed, it’s better to contact your bank and freeze your credit. Inconvenience is better than massive financial loss.
Have a reliable antivirus – Antivirus software can protect against ransomware attacks and alert you to phishing attempts. Some third-party software even monitors the dark web to check if your personal information is showing up on any lists for sale.
Check for breaches – You can also check if your details have been leaked by checking free sites like “Have I Been Pwned?”

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