Ever since the expansion of the internet, managing and storing data has gotten incredibly easier. We no longer have to go looking for a file in the basement whenever it’s needed. As the storage and access have become so much simpler, it has also lead to a rise in data theft. The number of data breaches every year is rising as fast as the amount of data itself. Due to the critical nature of the information that companies inherit nowadays, only the worst can be expected if there’s a cybersecurity breach.
In almost every case of a data breach in a company’s database, there’s reportedly a human error involved. This certainly indicates that mere encryption of company hard drives is not enough to prevent such cybersecurity breaches. There’s a lot more to data protection than strong passwords.
To some extent, this information can be gathered in a legal way, by monitoring market trends, customer feedbacks, and case studies. This is called competitive intelligence, and it can provide an upper hand in the fierce competition.
However, it’s not enough for some companies to have access to publicly available data. They desire an unfair advantage and use unethical data theft tactics to get ahead in the market.
Industrial espionage is the illegal and unethical theft of business trade secrets for use by a competitor to achieve a competitive advantage. It might involve blackmail, bribery and illegal surveillance in the workplace.
In many cases, a ‘mole’ is planted in your company to supply inside information to the outside forces. The idea of an employee stealing secrets for financial gain or to hurt the company might seem like a stretch. But these ‘inside jobs’ are much more common than you might think. It can include leaking company information about business plans, manufacturing recipes, techniques, and formulas.
Harmful effects of a company data breach:
- Lack of employee trust in the organization.
- Leaking of confidential corporate information.
- The tremendous financial loss to the company.
- Failure of organizational goals.
- Loss of competitive advantage in the market.
- Million dollar consumer lawsuits.
- Damage to company reputation.
Company data breach examples:
- Leakage of company affairs to the public.
- Competition suddenly gaining an advantage.
- Leakage of consumer data.
- Easy access to company databases.
How to increase data security in your company:
- Hire experienced data protection officers.
- Create a strict set of rules and guidelines in relation to data management.
- Have a strict policy in place against defaulters.
- Conduct thorough background checks when hiring new employees.
- You need everyone on board to spot these weaknesses in your company’s data security. Implement Your Safe Hub in your organization for employee complaint management and reporting purposes. It’s a secure and anonymous communication channel that lets your employees report such issues anonymously.