A data leak is a lapse in security that exposes confidential information to unauthorized parties. These breaches can compromise personal identifiable information (PII), intellectual property, future business plans and more. They can also lead to costly lawsuits and fines for non-compliance with data protection laws. The damage to a company’s reputation is often irreparable.

Inadvertent leaks can occur from the accidental loss of a physical device or misconfiguration of a digital system. A famous example is the Heartland Payment Systems hack in 2015, where hackers breached servers to steal customer records and credit card details. Malicious insider threats are another cause. In one case, four lawyers at a law firm stole company files and deleted data to help their competitor open a new office.

Data leaks can be exploited by cybercriminals for phishing scams, identity theft and ransomware attacks. The information that’s commonly exposed is PII, including names, phone numbers, physical addresses, social security numbers and email addresses. These are easy to find and sell on the dark web.

In addition to containing and repairing the leak, organizations need to investigate its source. A thorough analysis reveals the root causes, whether they stem from software vulnerabilities or human error. The lessons learned from this process will help strengthen defenses, improve existing security protocols and educate staff on how to identify risks. Finally, organizations must inform those impacted by the data leak. It’s a necessary step to maintain trust and loyalty.