Data Leakage Causes, Data Leakage Impact, and How to Prevent It

Data leakage issues are very common in Indonesia, occurring in large companies to government institutions. According to a report by Surfshark, a Netherlands-based cybersecurity company, within 8 months (January-August 2022), there were 196.26 million accounts globally experiencing data breaches, with 13.89 million accounts being in Indonesia. This puts Indonesia fourth in the list, following Russia, China, and France.

Before we delve deeper into the causes of data leaks, it’s crucial to understand the impacts that data leaks can have.


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Data Leakage Impact

Here are several ramifications a company may face in the event of a data leak:

  1. Paying compensation or fines.

Did you know that the Indonesian Ministry of Communication and Information Technology proposed in the PDP bill that fines relating to data leaks should be scaled according to the size of the company or service provider? The fine can be a percentage of sales, meaning large companies face bigger fines, and vice versa.

  1. Potential criminal charges under the Electronic Information and Transactions Law due to widespread consumer data.

Apart from company data, consumer data should also be guarded and protected as best as possible. If cybercrime affects the consumer data your company holds and leads to data leaks, consumers have the right to complain and take further action under the prevailing Electronic Information and Transactions Law.

  1. Ruined reputation and loss of public trust in the company.

Data breaches prove that your company lacks credibility and optimal management systems. Directly, it throws your company’s quality into question, and people might think twice before using your services/products again.

  1. Financial impact.

A damaged reputation and lost trust from the community clearly impact the financials of a company adversely, from finding it challenging to acquire trusting consumers to retaining loyal customers.


Data Leakage Causes

To prevent data leaks in your company, you must identify potential sources of data breaches. Here are some of them:

  1. Weak passwords

The most common mistake in password selection is not using a combination of numbers, capitals, symbols, and lowercase letters, and using the same password for all accounts. This makes it easy for hackers; if they crack one account, they can access others.

  1. Complicated access.

Your company’s intent to secure all systems might lead to complicated access protocols. For instance, to access a data file, one might need approval from many parties, inadvertently giving unauthorized parties access.

  1. Hacking

Data theft is no longer uncommon, with methods varying from email phishing, website phishing, etc. Many assume that hacking only targets government agencies and large companies, whereas small companies are also frequent victims.

  1. Theft

Data leaks can result from physical theft where devices are taken directly, or just the data stolen.

  1. Human error or user mistakes

User mistakes cause a significant portion of data leaks, with Stanford University research finding that about 88% of data leaks result from human error.


Addressing Data Leak Issues

The most precise way to address data leaks is through IT audits, partnering with cybersecurity firms, or organizing training sessions on the information technology to be implemented. Moreover, here are tips if your company data leaks:

  1. Identify the Data Leak Cause

Quickly find the source of the data leak by gathering evidence, traces, or footprints that indicate the leak’s origin. This can help you take the right steps to prevent the issue from escalating.

  1. Disconnect Inter-device Connections

If the data leak stems from dangerous malware, it’s advisable to disconnect all inter-device connections to prevent the malware from spreading and worsening the leak.

  1. Change Passwords or Access Points

This is necessary to deny the hacker continued access due to the password or access updates applied.

  1. Inform about the Occurred Data Leak

Never hide this fact from your consumers or your company’s internal team. You must explain the cause and solution to the data leak.

Still confused about how to anticipate data leaks and worried if it happens to your company?

Relax, we are ready to be your company’s partner in resolving data leak issues. Fourtrezz, a cybersecurity company with an experienced IT security team, specializes in finding security gaps in websites, applications, or networks. The Fourtrezz IT Security team always applies the operational standards used by IT Security worldwide.

Andhika R

Andhika R

Digital Marketing at Fourtrezz
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