Data security is important to everyone because it helps protect sensitive information from unauthorised access, use, or disclosure. However, the actual business implications of a data breach can be wide-ranging. Here are some of the consequences a business can face after a data breach:
- Loss of trust. Data breaches cause customers, partners, and other people to lose trust in a business. There are many high-profile examples of data breaches where companies have had to work hard to limit damage to their brand.
- Financial loss. A data breach can result in financial penalties for a business. For example, legal fees and fines if it is found to violate data protection laws.
- Business disruption. A data breach will disrupt business operations. If systems are compromised, employees won’t be able to access the information they need to do their jobs, and customers may be unable to access and use business services. All of which result in lost productivity and revenue.
- Loss of assets and IP. A data breach can lead to the loss of assets and intellectual property critical to the business success and its market value. Intellectual property data is one of the most valuable types of data a business holds. Businesses are willing to pay higher ransoms to restore intellectual property, making it a prime target for cybercriminals.
Here’s a brief reminder of some common techniques businesses use to tackle these threats.
- Two-factor authentication (2FA). 2FA requires a second verification form, adding an extra layer of account security. This makes it harder for hackers to access an account, even if they have the password.
- Strong passwords. Current advice suggests passwords should be at least 12 characters long and include a mix of upper and lowercase letters, numbers, and symbols. A different and easier-to-remember approach is to choose three random words.
- Never storing passwords. Users shouldn’t keep a text record of passwords. However, the biggest risk is storing passwords in an internet browser. It may be convenient, but security goes out the window if a browser conveniently opens and logs a user into everything with just a click of a mouse.
- Secured wireless networks. Routers with robust encryption settings help protect a business. As does turning off the broadcasting function that makes a network invisible – hackers can’t steal what they can’t see.
- Keeping software up to date. Updates often include security patches that address vulnerabilities. A straightforward task for small businesses, but a larger issue that presents a greater vulnerability as a company grows.
- Training employees on cybersecurity. Employees can be the weakest link in defences. They require training on best practices such as identifying phishing emails, creating strong passwords, and avoiding malware downloads.
- Network monitoring. Potential security issues can be monitored using software systems that detect issues and send alerts. These tools offer functionalities, ranging from monitoring the temperature of servers to checking the number of packets that have come through gateways.
- Using encryption. Encryption converts data into code that can only be deciphered with a key. This makes it difficult for hackers to access data, even if they manage to get inside the systems. There’s an argument for encrypting all data by default – but as a minimum, it’s recommended to use encryption for sensitive data.
These are the fundamentals that any business should adopt. What more can be done, given that the sophistication and frequency of attacks are increasing?
Using blockchain as the backbone for secure data storage and sharing
Blockchain technology offers another line of defence. Customers now recognise that its intrinsic security features offer a more robust way to secure both data and valuable intellectual property.
In addition to the methods outlined above, larger, distributed systems require extra protection, especially when secure data sharing is necessary. This applies in supply chains where data is being shared across multiple partners or when apps use highly confidential data such as IP or personal identity information.
This is where deploying a specially designed enterprise blockchain system like FALKOR SI will serve as the foundation of a robust digital and data infrastructure. Here’s how:
- Blockchain employs a decentralised approach. This means there is no central authority controlling the data. Instead, data is stored across a network of computers, making it much more difficult for hackers to access information. This is because to get inside the system, a hacker would need to gain control of most of the computers in the network, which is virtually impossible.
- Blockchain architecture stores multiple copies of data. With a distributed ledger model, blockchain offers redundancy and resilience, replicating and storing copies of data across the network nodes. This ensures there is no single repository of valuable data; therefore, no single point of data loss should data be compromised.
- Blockchain uses cryptography to secure data. Each block in the chain is encrypted with a unique code, and once the block is added to the chain, it cannot be altered or deleted. This stops anyone from tampering with data without being detected. So tools like FALKOR SI add a further encryption layer supported by advanced protection inherent to blockchain technology.
- Blockchain allows for transparency and accountability. Every transaction that occurs on the blockchain is recorded and can be traced back to its origin. This means any suspicious activity can be easily identified and investigated.
- Enterprise blockchain tools can be used to enforce policies and processes. Supported by FALKOR SI, enterprise blockchain systems can be upgraded to reinforce unique and secure user and app access to distinct datasets based on their specific requirements and objectives.
- Enterprise blockchain systems track and audit both data and app use. Tools like FALKOR SI provide an easy way to monitor if users follow policies by tracking how and when they have accessed and used different types of data either directly or through an app. This stops users and intruders from working around or manipulating granted access.
- Blockchain enhances data privacy. By using a permissioned blockchain, only authorised parties can access data, keeping sensitive information confidential.
By using blockchain, you can confidently take your data infrastructure to an advanced level. It’s a secure and auditable system that makes you more trustworthy and productive as a business.
Cybersecurity is a perpetual process, essential for the survival of your business. So be sure to regularly review and update your security measures to prevent the most common data security threats your business could potentially face.