Threat actors are increasingly targeting small and medium-sized businesses because they often don’t have cybersecurity measures in place, so hackers can evade detection. Phishing is still the most significant threat and has countless adverse effects, including but not limited to loss of money, damage to reputation, and disruption of operational activities. Personal and confidential data is stolen, and payment is demanded to prevent sensitive information from being publicised. After malicious actors strike, lawyers are rarely behind. On account of data breaches at the likes of Equifax, British Airways, and Ticketmaster, legal professionals have been quick to act by filing complaints seeking compensation in the name of consumers. 

If your company has a data breach on its network, your client may sue for the distress they’ve suffered, holding you accountable. Getting sued can destroy everything you’ve worked for so hard, so you must go the extra mile to protect your business. Your chances of getting involved in a lawsuit depend on your exposure. For instance, if you run an e-commerce store, you’re a target for cybercriminals looking for credit card data. Your website can be hacked, and this doesn’t take too long – roughly a few minutes. Having employees is another risk factor, as they make cybersecurity-related mistakes, which can turn out to be costly for your organisation. 

Lawsuits Can Be Costly in Terms of Money, Time, And Reputation

If a data breach results in a high risk of adversely affecting people’s rights and freedoms, it’s possible to make a data breach claim and recover compensation for economic losses. In the UK, the GDPR introduces a duty on all organisations to report specific incidents to the relevant supervisory authority. Every circumstance will be different, but anyone can make a GDPR data breach compensation claim if they can provide evidence they’ve suffered damages. If you get sued, the best thing you can do is reach out to a business lawyer. Needless to say, a lawsuit is costly in terms of money, time, and reputation. 

Litigation is an expensive proposition in terms of legal fees and your time and attention. Rather than diverting resources from profitable ventures, you should better make a compromise – in other words, make a settlement agreement. As a rule, a data breach claim can be settled in less than five months. Still, the outcome can depend on several factors, including liability, how badly the plaintiff is suffering, and the complexities relating to the cyber incident. A civil lawsuit will damage your reputation with the public, and others will be hesitant to work with your company. A poor reputation is all it takes to devastate your organisation. 

Critical Best Practices for Preventing a Data Breach 

A civil lawsuit is a professional hazard, yet a few simple precautions can minimise that hazard. Here’s how to improve the security of your data and prevent it from getting lost, damaged, or stolen. 

Identify Locations of Sensitive Information & Limit Privileged Access 

Your company collects and stores information that might result in a loss of an advantage or level of security if disclosed. Carelessness in monitoring and protecting it will leave you vulnerable to costly data breaches, so compile an inventory of all data sets. Above all, this inventory should be subject to routine updates to maintain the same rate of progress. Know where your organisation’s critical data is located, how it’s being accessed, and how it’s being shared. Not only is the amount of data immense, but it’s also located across multiple devices and in disparate locations. Ensure employees have only the necessary levels of access to do their jobs. 

Train Employees & Clients 

Identify the right topics, build or find training material, and create a schedule. Employees and customers must be familiar with the best practices regarding phishing, malware, and other cybercrimes. Slideshow presentations are suitable for building awareness as they immediately grab viewers’ attention and help them remember learning objectives. Remember that cybersecurity practices are effective only if everyone is on board, so training should be mandatory. Everyone knows it’s not a good idea to click on a suspicious link, but what if the threat actor impersonates someone in the organisation? People might make the wrong decisions if they’re not fully prepared or under pressure. 

Run A Data Breach Simulation

Test the strength of your organisational defences by organising a data breach simulation. Many companies run training exercises and role-play scenarios to prepare for a cyberattack. In the event of a data breach, they can respond quickly and know who’s in charge of what. A data breach simulation can feign attacks on endpoints, data exfiltration, malware attacks, and so on, so you’ll know for sure if your organisation is protected against unauthorised access and data breach. Put simply, you can test your security assumptions, identify security gaps, and obtain actionable insights. The best way to fight hackers is to get a good understanding of their methods and fix any vulnerabilities that can be exploited.

Monitor Infrastructure Using Advanced Tools 

Collect and analyse data from IT infrastructure, systems, and processes to enhance business outcomes (and drive value across the organisation). By leveraging advanced security tools, you can block potential threats and prevent data breaches from occurring and spreading. There are many cybersecurity solutions for small and medium-sized businesses, meaning you can maximise potential without sacrificing safety. Most of them are based on artificial intelligence. At any rate, these tools notify the appropriate staff to conduct further investigation and mitigation, giving them visibility into the network and enabling stronger data protection. You can’t assume your organisation is safe, so share ongoing security checks with the rest of your team. 

All things considered, a data breach can change the course of your business, so carry out due diligence. If a cyberattack takes place, insurance is your best bet to cover the losses and the costs of a lawsuit. For extra protection, it’s recommended to customise your insurance policy and add extra expense income so that you can pay for non-ordinary expenses following a disruptive incident.