How to Handle a Data Breach: A Guide for Businesses

Data breaches are a growing threat that can strike any business, large or small. The impact of a breach goes beyond just data loss – it can devastate your company’s finances, ruin customer trust, and lead to expensive legal challenges.

Knowing how to handle a data breach is more important than ever. Responding swiftly and with a clear plan can help your business recover quickly and minimize damage. 

This guide will walk you through the key steps for handling a breach and provide strategies to prevent future incidents. By the end, you’ll have a clear action plan to handle a data security breach, protect your business from similar incidents, and reinforce the security of your systems.

What is a data security breach?

A data breach is the unauthorized access, exposure, or disclosure of sensitive, confidential, or protected information. The exposed information could range from personal identifiers like names and addresses to highly sensitive data like credit card numbers or intellectual property.

Data breaches can be categorized based on how they occur, such as:

• External Breach: A cyberattack launched by hackers outside the organization who exploit weaknesses in a company’s systems.
• Internal Breach: Misuse or unauthorized access to information by an employee or insider, whether intentional or accidental.
• Physical Breach: The theft of physical devices, such as computers, smartphones, or USB drives, that contain sensitive data, leading to exposure if the devices fall into the wrong hands.

Phishing attacks are one of the most common causes of data breaches. These attacks have become far more sophisticated thanks to the growing use of AI, and are likely to become more persuasive, increasing the risk for businesses. Organizations must stay vigilant, as the potential for these attacks to cause widespread damage is greater than ever.

For more insights on the types of cybersecurity breaches and how to address them, check out our article: Top Types of Cyber Security Breaches (And How to Prevent Them).

How to deal with a data breach

A data breach occurs when unauthorized individuals gain access to sensitive, confidential, or protected information. This can happen either through malicious intent or weak security measures. The compromised data can include anything from personal identifiers like names and addresses to more sensitive information, such as credit card numbers or intellectual property.

Data breaches typically fall into three main categories:

• External Breach: Cyberattacks from outside hackers who exploit vulnerabilities in a company’s systems.
• Internal Breach: When an employee or insider misuses their access to confidential data, either intentionally or by accident.
• Physical Breach: The theft of physical devices, like computers or USB drives, which contain sensitive information.

One of the most alarming facts is that nearly 90% of data breaches are caused by phishing, making it the primary method cybercriminals use to gain access. These attacks have become more dangerous, as attackers now use AI to create convincing, personalized scams. AI makes phishing harder to detect and allows attackers to target more people at once, increasing the scale and potential damage of each attack.

The true power of phishing lies in its ability to manipulate human behavior. By exploiting emotions like fear or urgency, phishing attacks prompt users to click malicious links or share sensitive information before fully assessing the risks. As AI enhances the realism of phishing attempts, the threat continues to grow, making it an even greater risk to organizations everywhere.

Keep evidence of the breach 

Preserving evidence is a critical part of handling a data breach, as it will be necessary for both internal investigations and any legal or regulatory proceedings that may follow. Properly collecting and preserving evidence allows your team to trace the breach's origin, understand how attackers accessed your systems, and prevent future incidents.

Key examples of evidence include:

• Logs of system activity before, during, and after the breach. These may show any unauthorized access or suspicious behavior.
• Affected files and databases, with details of how they were accessed or modified by the attackers.
• Communication records – including internal and external correspondence – that may provide insight into how the breach occurred.

Despite warnings, companies often lack a strong data breach prevention plan or fail to update their security protocols regularly, leaving them vulnerable to phishing-related breaches. Collecting evidence that shows how phishing was used in an attack can inform better security strategies and lead to stronger safeguards.

Secure operations and contain the breach 

Containment is one of the most important steps in managing a data breach, as it helps to prevent the breach from escalating further. Your IT team should focus on isolating the affected systems to limit the reach of the attackers and safeguard the rest of your network.

Containment efforts typically involve:

• Disconnecting compromised systems from the network to stop unauthorized access.
• Blocking access points that were used to gain entry, such as shutting down compromised user accounts or changing login credentials.
• Applying temporary fixes to any known vulnerabilities to prevent attackers from exploiting them further.

Since phishing often involves the compromise of employee credentials, it is critical to immediately assess whether any employee accounts have been hijacked and take action to prevent further misuse. The damage caused by phishing can escalate quickly if not contained, especially as over 70% of organizations reported experiencing a phishing-related security incident in 2023.

Carry out an IT security audit 

After containing the breach,  the next step is conducting a thorough IT security audit. This examination allows your team to fully assess the scope of the breach and identify the vulnerabilities that attackers exploited. A well-executed audit helps you understand exactly how the breach occurred and which systems or data were compromised.

Key areas to focus on during the audit include:

• Identifying the breach entry point and mapping how attackers navigated your systems and gained access to sensitive information.
• Assessing the scope of the breach, including which files were accessed or stolen, and whether sensitive customer or employee data was exposed.
• Evaluating the business impact, such as potential legal, financial, and operational consequences that could arise from the breach.

Given that 55% of IT and security leaders consider phishing attacks their top concern (Source: CSO Online), your audit needs to include a detailed analysis of how it might have contributed to the breach. Since phishing remains one of the primary methods used by cybercriminals, failing to properly audit this aspect could leave your organization exposed to future threats.

Fix vulnerabilities 

Once the security audit has revealed the weaknesses that led to the breach, it’s time to address these vulnerabilities. Key actions include:

• Applying security patches to any outdated software or systems that may have been compromised.
• Implementing additional security measures, such as multi-factor authentication or stronger encryption for sensitive data.
• Changing access controls, especially for high-risk accounts or systems, to prevent unauthorized access.

By addressing these vulnerabilities, you reduce the chances of a similar breach occurring again, particularly those stemming from phishing attempts, which remain a persistent threat. 

Create a public communications plan 

A well-crafted public communications plan is key to managing the external impact of a data breach, particularly if customer or client data has been compromised. How you communicate with the public will influence how your business is perceived in the wake of the incident.

Your communications plan should focus on:

• Providing clear, factual information about the breach, including what data was compromised and what actions are being taken to resolve the situation.
• Reassuring affected individuals that their data is being handled with care and offering guidance on how they can protect themselves.
• Maintaining transparency throughout the response process to build trust and demonstrate that your business is committed to rectifying the situation.

By proactively managing your public communications, you can help mitigate the reputational damage caused by a data breach, particularly one initiated through phishing. 

Notify the relevant parties

Depending on the nature of the breach, you may be required to notify specific individuals, organizations, or regulatory bodies. Prompt notification is not only a legal requirement in many industries but also demonstrates your commitment to transparency. Notification laws vary by country and state, so be sure to stay up-to-date with local legislative requirements. 

Key parties to notify include:

• Internal teams who need to be aware of the breach and its potential effects on operations.
• Customers or clients whose data may have been compromised, providing them with the information and resources needed to protect their personal information.
• Regulatory bodies who oversee data protection and privacy laws, ensuring that your business remains compliant with any legal obligations.

Notifying the appropriate parties quickly and effectively can help minimize the potential fallout from the breach, especially when phishing has been involved. Phishing breaches, in particular, tend to affect a wide range of stakeholders, from internal employees to external clients, so timely and transparent communication is critical.

Learn from the breach 

After the immediate concerns have been addressed, you might be wondering what to do after a data breach. This is the time to reflect on what can be learned from the incident. A post-breach review lets your organization identify areas for improvement and develop stronger defenses against future attacks.

Here are some steps to include in your review:

• Analyzing the effectiveness of your incident response plan and making adjustments where necessary.
• Identifying gaps in your security infrastructure that could be strengthened.
• Reinforcing employee training to make sure that everyone understands cybersecurity best practices and how to respond to potential threats.

The learning process should be ongoing, with regular updates to policies and procedures based on the latest phishing tactics and cybersecurity developments.

What not to do in a data breach

In addition to following the advice above on what to do in a data breach, there are some key things not to do in this critical situation. 

Panic 

It’s normal to be overwhelmed when a data breach occurs, especially if sensitive information has been compromised. However, panicking can lead to rash decisions that might exacerbate the damage. 

Avoid jumping to conclusions or making decisions without all the facts in place. Instead, take a moment to regroup with your team, assess the situation calmly, and follow the steps outlined in your incident response plan. Acting with a clear head will help minimize errors and ensure that your response is effective.

Wipe your systems

While it may seem like wiping your systems or deleting compromised files will stop the breach, doing so can destroy critical evidence that is necessary for investigating the incident, determining how it happened, and preventing it from occurring again.

Preserving all system logs, files, and communication records is crucial for an accurate forensic investigation. Removing anything before a full assessment has been completed can hinder your ability to trace the origin of the breach and understand its full scope.

Make misleading statements

When a data breach occurs, transparency is key. 

Misleading or downplaying the incident can damage your organization’s credibility and lead to further mistrust from clients, customers, and stakeholders. Instead of attempting to cover up the extent of the breach, focus on providing clear, factual information.

Make sure that your internal teams coordinate on what will be communicated and to whom. It’s important to provide consistent messaging about what happened, what is being done to resolve the issue, and how those affected can protect themselves moving forward. This coordinated communication plan will help build trust and prevent miscommunication from escalating the situation.

Act without a plan

Rushing to act without a well-thought-out plan can lead to serious mistakes. Following your incident response plan ensures that all the necessary steps are taken in a structured and organized manner. Avoid attempting to “improvise” or skip steps during the breach response process, as this could result in missed details or further vulnerability.

Ensure that your team sticks to the defined protocol, no matter how urgent the situation feels. Your incident response plan was designed to guide you through moments like this – trust it and avoid making hasty decisions that could have long-term consequences.

Create a data breach prevention plan 

Given the significant role phishing plays in data breaches, organizations must prioritize building a robust defense strategy to mitigate these risks. A well-rounded approach should include the following components:

• Comprehensive employee training: Businesses should regularly educate their staff on how to recognize phishing attempts and how to respond when they encounter suspicious emails or messages. Security training should cover the latest phishing trends, tactics, and best practices for staying safe online.
• Multi-layered security approach: Relying on a single line of defense is no longer sufficient. Instead, organizations should implement multiple layers of security to protect against phishing. This could include technologies such as email filtering, firewalls, and endpoint detection systems, all working together to block malicious content and detect suspicious activity before it can cause harm.
• Regular phishing simulations: To test the effectiveness of your cybersecurity measures and ensure that employees remain vigilant, consider conducting regular phishing simulations. These exercises can help identify weaknesses in your defenses and provide opportunities for improvement. Simulations can also reinforce the training employees receive, helping them recognize and avoid real phishing attempts.
• Incident response planning: Even with the best preventive measures, no organization is entirely immune to phishing attacks. That’s why it’s important to have an incident response plan in place that outlines the steps to take if a phishing attack does occur. This plan should cover everything from identifying the breach to mitigating its impact and notifying relevant parties.

By adopting these strategies and keeping up with the evolving threat landscape, businesses can significantly reduce their risk of falling victim to phishing attacks and, by extension, data breaches.

For more information, check out our blog "How to Protect from a Data Breach: Best Practices."

What is a data breach prevention plan?

A data breach prevention plan is a well-structured strategy aimed at protecting your organization from unauthorized access to sensitive information. This plan not only outlines the steps your company will take to minimize the risk of a breach but also details how to handle a data breach effectively if one does occur.

A strong prevention plan focuses on proactive measures that secure your data before a breach even happens. Data loss prevention measures can range from regular employee training and strict access control policies to using advanced security technologies like encryption and real-time threat detection systems. By establishing a clear, actionable plan, your business will be better prepared to detect and neutralize potential threats before they escalate into serious breaches.

As phishing and other cyber threats continue to evolve, having a data breach prevention plan is no longer optional – it’s essential. A proactive approach to security is one of the most effective ways to minimize risk and ensure that your organization is ready to respond should a breach occur.

What should a data breach prevention plan include?

Here are the essential elements every plan should cover:

• Employee training: Since human error is one of the leading causes of data breaches, ongoing employee education is critical. Staff should be trained to spot phishing attempts, practice safe data handling, and report suspicious activity immediately. Training should also cover how to respond if a breach occurs, ensuring that every team member understands their role in the incident response process.
• Access control policies: Restricting access to sensitive data is fundamental. Ensure that only employees who need access to specific information have it, and use multi-factor authentication (MFA) to add an extra layer of protection. This should extend to remote work setups, where secure connections are necessary to keep data safe.
• Regular security audits: Conduct routine security audits to uncover any vulnerabilities within your systems. These audits help ensure that systems are regularly updated with the latest security patches and that any weaknesses are addressed before they can be exploited. Audits should be thorough, covering both internal procedures and external third-party risks.
• Data encryption: All sensitive information, whether in storage or during transmission, should be encrypted. Encryption ensures that even if attackers gain access to your systems, the data remains unusable without the appropriate decryption keys. This is especially important for protecting personal data, financial records, and intellectual property.
• Backup and recovery plans: In the event of a breach, having a reliable backup and recovery plan is essential. Regularly back up critical data and store it securely so that it can be restored quickly if needed. It’s important to regularly test backups to ensure they function properly and can be accessed when required, minimizing downtime in case of an attack.
• Phishing prevention measures: Phishing remains one of the most common methods used to breach systems, making prevention a priority. Implement tools like email filters to detect and block suspicious messages before they reach employees. Regular phishing simulations and training refreshers can also keep your team vigilant and help prevent attacks.

Building and regularly updating a data breach prevention plan will reduce the risk of unauthorized access to your company’s data. Taking proactive steps now will not only protect your business but also enable a fast and coordinated response if a security breach does occur.

Protect your business with Jericho Security 

A data breach can do lasting damage to your business. Luckily, with the right strategies in place, you can minimize the fallout and protect your organization from future attacks. Jericho Security offers a full range of services designed to not only help businesses recover from breaches but also prevent them before they happen.

From incident response planning and employee training to advanced threat detection, Jericho Security provides the expertise and tools your company needs to stay secure in an increasingly hostile digital environment. Don’t wait for a breach to put your business at risk – contact Jericho now to protect your data, your reputation, and your future.