Breach Notification Strategies

Cybersecurity attacks are continuously on the rise and the threats are becoming more sophisticated. Of these threats, data breaches are the most common. Large-scale, high profile data breaches of large companies are the main focus of media’s attention; however, organizations of all sizes hold confidential information and are vulnerable to data breaches. This article delves into an organization’s obligations regarding breach notifications and outlines best practices for alerting stakeholders when a data breach incident occurs.

Defining Data Breaches

A data breach is any security incident where sensitive data or confidential information falls into the hands of unauthorized persons or entities, either accidentally or unlawfully. The information obtained during the breach is then viewed and shared without the knowledge or permission of the owner.

Common Breach Targets

Organizations, regardless of their size, store sensitive information, making them vulnerable to breaches. Breached data usually includes personally identifiable information, intellectual property, personal health records, login credentials, and digital devices like laptops and hard drives.

Data Breach Scale

Cyberattacks and data breaches are proliferating, affecting millions. High-profile breaches underline the need for robust security measures and prompt breach notifications to prevent personal data loss, theft, or unauthorized access.

Data Breach Notification

Data breach severity and scale vary widely. Organizations must promptly assess security incidents to identify breaches and ascertain the extent of impact on individuals or entities. If a breach is confirmed, legal obligations compel organizations to inform affected clients, individuals, and regulatory bodies. This may involve formal reports and breach notifications.

Notification Requirements

Breach notification requirements differ significantly based on jurisdiction. Global operations make the notification process complex; organizations must adhere to diverse notification rules in each region they operate. Compliance involves maintaining location-specific security policies and taking remedial actions to mitigate damage and strengthen data security. The aim of such laws is twofold: minimizing risks for individuals and encouraging organizations to enhance data protection.

Regional Notification Laws

Breach notification laws vary by country and often by a specific region, for example, by state, territory or province within each country. A jurisdiction may impose data protection regulations in relation to the required timing of a notification, the method by which they should disclose a breach, as well as whether they are obligated to disclose a breach. Organizations would be required to abide by all applicable laws and regulations within each of those regions where they conduct business and incorporate these into their data protection policy.

Notification Best Practices

In spite of most organizations ongoing efforts to ensure a strong security system is in place, breaches are inevitable. Being prepared when a breach happens is the key to minimising potential damage.

Data Breach Incident Response Plan

As part of an organisation’s data protection policy, a data breach incident response plan should be in place. In drafting the response plan, organizations should conduct a risk assessment to ensure that they are aware of any potential breaches and which assets may be impacted, including data, people and systems. Understanding what constitutes a data breach will ensure that the organization is prepared when an incident occurs. The response plan should include a list of key individuals, including the response team, outsourced providers, the legal department, as well as a list of all applicable regulatory authorities. Should a data breach occur, the response plan will have clear guidelines outlining a communications plan. The plan should consider the impact of the breach, as well as the timing of the notification, having consideration for the laws and regulations in the region and who should be notified.

Assessing Notification Necessity

Organizations are not legally obligated to report every data breach, however, ethical best practice suggests that businesses should consider notifying all impacted individuals, other organizations and potentially, law enforcement. Transparent communication should come from the organization, rather than an impacted party learning on the news or social media.

Timing of Notification?

The timing of the notification is critical, particularly in the case where sensitive information or financial information has been stolen, such as credit card details or passwords. Individuals should have the chance to protect themselves against potential harm like identity theft.

Who Should be Notified?

The key stakeholders which need to be made aware of the breach varies widely and includes, individuals, employees, regulators, media, investors, insurers and other relevant parties. As outlined above, adherence to notice periods in each jurisdiction is crucial.

What Information Should be Disclosed?

As part of the breach communication plan, the organization should be prepared to provide clear and honest information about what happened, including when it occurred, what information and data was impacted, associated risks, action taken since the incident happened and solutions deployed.

Offer Assistance

The organization should demonstrate responsibility and provide support wherever possible to all impacted parties in order to help them prevent further damage. Individuals may need guidance on how to protect their identity or in changing passwords. It may be necessary to offer compensation and/or extend an apology for the distress caused by the breach. It is good practice to provide a general contact number so that clients know how to contact the organization when they learn that an incident has occurred.

Post-Breach Actions

When a data breach occurs, organizations should take the opportunity to reflect on the incident, evaluate how the breach was handled and improve the processes and procedures to better prepare for the next occurrence.

Final Words

Effectively containing and eradicating breaches and communicating promptly with stakeholders are paramount. Organizations equipped with robust data breach response plans, knowledge of regional regulations, and proactive notification strategies can minimize damage, build trust, and avoid negative media exposure or client loss.