Human Risk Management Institute

Causes of Data Breaches and How to Prevent Them

Written by Nur Rachmi Latifa | 20 Jan 2025

The Importance of Data Protection in the Digital Era

As technology advances, personal data and other critical information are often stored and managed digitally, increasing the risk of data breaches. Data breaches not only impact individual privacy but can also damage an organization’s reputation and result in significant financial losses.

In this increasingly interconnected world, understanding the causes of data breaches and learning how to handle leaked personal data is crucial. This article will explore the key factors contributing to data breaches and the solutions that can be implemented to prevent them.

What Is a Data Breach?

A data breach occurs when sensitive, confidential, or personal information is exposed to unauthorized parties. It can involve various types of data, ranging from personal details such as names and identification numbers to corporate data, including financial information or business strategies. Data breaches can result from multiple factors, including cyberattacks or human error.

High-profile cases, such as the Facebook–Cambridge Analytica incident or data theft by hacker groups targeting major companies, highlight the significant risks that data breaches pose to both individuals and organizations.

Causes of Data Breaches

Several common factors contribute to data breaches, including:

a. Cyber Attacks

One of the most common causes of data breaches is cyberattacks. These are deliberate attempts by hackers to access or steal sensitive data. Types of cyberattacks that often lead to data breaches include:

  • Phishing: Manipulative techniques to obtain sensitive information by pretending to be a trusted entity.
  • Malware: Malicious software designed to steal or damage data.
  • Ransomware: A type of malware that locks a victim’s data and demands a ransom for restoring access.

b. Security System Weaknesses

Weaknesses in security systems are a major cause of data breaches. These can include outdated systems, weak passwords, or flaws in the software being used. For example, software that is rarely updated becomes an easy target for hackers exploiting its weaknesses.

c. Human Error

Human error is a frequent and often inadvertent cause of data breaches. Examples of such errors include:

  • Misaddressed Emails: Sending sensitive data to the wrong recipient.
  • Incorrect Data Uploads: Uploading files without proper protection.
  • Configuration Errors: Misconfigured security settings in cloud applications.

d. Insider Threats

Not all threats come from external sources. Insider threats originate from employees or other individuals with access to data who have malicious intent. These may involve disgruntled employees or third parties misusing their access to company systems.

e. Lost or Stolen Devices

The loss or theft of physical devices such as laptops or smartphones containing critical data is another significant factor. Without encryption or additional security measures, the data stored on these devices can be easily accessed by unauthorized individuals.

f.  Lack of Regulatory Compliance

Failing to comply with data protection regulations, such as the Personal Data Protection Law (UU PDP), increases the risk of data breaches. Non-compliance often indicates that the company has not implemented adequate security measures to protect sensitive data.

What Are the Most Common Causes of Data Breaches?

Based on the factors mentioned above, the most common causes of data breaches are cyberattacks and human error. Cyberattacks like phishing and ransomware exploit security vulnerabilities to gain access to sensitive data. Meanwhile, human errors, such as sending emails to the wrong recipient or mishandling data carelessly, are also frequent contributors.

The combination of these two factors makes data breaches a persistent risk unless mitigated by strong security strategies.

How to Address and Prevent Data Breaches

Here are some effective ways to combat and prevent data breaches:

1. Implement Stronger Cybersecurity Measures

Using antivirus software, firewalls, and data encryption is a basic yet essential step in protecting data from cyberattacks. Strengthening cybersecurity can significantly reduce the risk of breaches caused by hacking.

2. System Updates and Security Patches

Keeping systems up-to-date is a simple but highly effective way to prevent data breaches. Regular updates and security patches help close vulnerabilities that hackers might exploit.

3. Cybersecurity Awareness Training for Employees

One of the best ways to minimize human error is through regular training on the importance of data security. This training should cover recognizing cyber risks, identifying phishing emails, and adopting best practices for safeguarding data.

4. Use Multi-Factor Authentication (MFA)

MFA adds an extra layer of security by requiring additional verification to access data. This reduces the risk of unauthorized access, especially in cases where access credentials are stolen.

5. Enforce Strict Data Access Management

Implementing role-based access control (RBAC) ensures that only authorized individuals can access sensitive data. This reduces the likelihood of data being stolen or misused by unauthorized parties.

6. Establish Security Procedures for Physical Devices

Organizations should have specific security procedures to handle lost or stolen devices. Device encryption and remote data wipe policies can help secure data stored on physical devices.

7. Comply with Data Protection Standards and Regulations

Adhering to data protection regulations, such as the Personal Data Protection Law (UU PDP) or GDPR, ensures that organizations implement appropriate security measures. Compliance also helps companies avoid fines and penalties associated with non-compliance.

Steps to Take If Personal Data Has Been Breached

If a data breach has occurred, here are steps that can be taken to minimize its impact:

  • Change Passwords Immediately: If the breach involves credentials, immediately change passwords and enable multi-factor authentication (MFA).
  • Notify Authorities: Companies should contact relevant authorities and report the breach.
  • Communicate with Affected Customers or Employees: Inform those affected about the breach and outline the steps being taken to address the issue.
  • Improve Security Systems: Conduct an audit and evaluate security systems post-breach to prevent similar incidents in the future.

Conclusion

Data breaches are a serious threat in the digital era, capable of causing significant harm to both individuals and organizations. The most common causes of data breaches include cyberattacks, human error, and security system vulnerabilities. However, with appropriate preventive measures such as enhancing cybersecurity, training employees, and implementing access controls, data breach risks can be minimized.

Ultimately, maintaining data security is a shared responsibility that requires attention and action from all levels of an organization. By understanding the causes of data breaches and how to address them, individuals and companies can better protect their data in today’s challenging digital landscape.