-
The NPD data breach highlighted key vulnerabilities such as valuable data attracting cybercriminals, insufficient security measures, phishing attacks, and third-party vendor risks.
-
Small and medium-sized businesses (SMBs) should protect themselves by understanding the value of their data, implementing strong access controls and encryption, regularly updating systems, and educating employees on cybersecurity best practices.
-
SMBs should strengthen vendor security protocols, perform regular cybersecurity audits, and develop an effective incident response plan to minimize the impact of potential breaches.
With businesses taking to digital means nowadays to better themselves, data breaches are becoming alarmingly common. The recent NPD data breach serves as another eye-opener for businesses, especially small and medium-sized businesses (SMBs), to reassess their cybersecurity strategies.
Read on as we break down what happened in the NPD data breach, why it occurred, and the key lessons SMBs can learn to strengthen their defenses.
What Was the NPD Data Breach?
The NPD Group, a global market research company, recently found itself the victim of a large-scale data breach. While specific details of the attack remain under wraps, it’s clear that cybercriminals gained unauthorized access to a significant amount of sensitive client data. This data included proprietary information from NPD’s corporate clients, who rely on the company’s market insights and consumer data to make business decisions. As with many data breaches, the breach at NPD not only compromised valuable data but also shook the trust between the company and its clients.
Why Did the NPD Data Breach Happen?
The NPD breach is part of a broader pattern of cyberattacks that target companies holding vast amounts of sensitive data. But why did it happen, and what made NPD a target? Let’s examine a few of the underlying causes:
-
Valuable Data at Stake: NPD’s market research data is invaluable for companies looking to understand consumer behavior and trends. This kind of data is highly sought after by cybercriminals, who either sell it on the dark web or use it for future targeted attacks. The more valuable the data a company holds, the more attractive a target it becomes.
-
Insufficient Security Measures: While it’s not yet clear which specific vulnerabilities were exploited, many breaches occur because businesses fail to implement basic cybersecurity measures. This could involve weak passwords, unpatched software vulnerabilities, or insufficient encryption. Often, companies don’t realize they have a security gap until it’s too late.
-
Phishing and Social Engineering: Another potential cause is social engineering, a technique used by cybercriminals to trick employees into revealing confidential information. Phishing attacks, where fraudulent emails lure individuals into clicking malicious links, have become a common entry point for hackers. Employees without proper training may unwittingly expose sensitive data, giving attackers a foothold in the company’s systems.
-
Third-Party Vendor Risks: Many businesses rely on third-party vendors for various services, including data management and security. However, these vendors can also introduce risks. If a vendor’s security practices aren’t up to par, it creates an easy entry point for attackers. It’s possible that NPD’s breach could have involved vulnerabilities in one of its third-party partners.
How SMBs Can Protect Themselves from Similar Breaches
While large corporations often grab headlines when they’re hacked, small businesses are equally, if not more, vulnerable to attacks. Cybercriminals know that smaller businesses typically have fewer resources and weaker security protocols, making them easier targets.
Here are several actionable steps SMBs can take to protect themselves from breaches like the one NPD experienced:
Understand the Value of Your Data
The first step in protecting your business is understanding the value of the data you hold. SMBs often underestimate the importance of their information, from customer contact details to financial records and trade secrets. Conduct a data audit to determine what types of sensitive data you collect, store, and share. Once you understand the value of your data, you’ll be more motivated to protect it.
Implement Strong Access Controls
One of the most effective ways to prevent data breaches is to limit who has access to sensitive information. Not every employee needs access to all your data. Implement role-based access controls so that only authorized personnel can view or modify sensitive information. Additionally, consider implementing multi-factor authentication (MFA) for all employees, which adds an extra layer of cybersecurity by requiring an additional form of identification beyond just a password.
Regularly Update and Patch Systems
Cybercriminals often exploit vulnerabilities in outdated software to gain access to company systems. SMBs must stay vigilant by regularly updating their software, including operating systems, applications, and security tools. Most software providers release patches to fix known security flaws, so installing these updates as soon as they’re available is crucial. Automated patch management systems can make this process easier.
Educate Employees on Cybersecurity Best Practices
Human error is one of the leading causes of data breaches. Educating your employees on cybersecurity best practices can help prevent phishing attacks and other social engineering tactics. Make cybersecurity awareness training a part of your onboarding process and conduct regular refresher courses to keep everyone up to date. Teach employees how to identify suspicious emails, avoid clicking on unverified links, and report any potential cybersecurity threats immediately.
Utilize Encryption
Encryption is a powerful tool that scrambles your data, making it unreadable to anyone without the proper decryption key. Even if hackers manage to breach your systems, encrypted data will be useless to them. Encrypt sensitive data both at rest (stored data) and in transit (data being sent across networks). SMBs should use encryption for files, emails, and any other forms of communication that involve sensitive information.
Perform Regular Security Audits
Conducting regular security audits helps you identify and address vulnerabilities before cybercriminals can exploit them. Audits allow you to evaluate your existing security measures to check that they’re working as intended. Consider bringing in a third-party cybersecurity firm to perform an audit, as they can offer an unbiased perspective and identify weak points that your team might overlook.
Strengthen Vendor Management Practices
If your business relies on third-party vendors, check that they’re following strong security protocols. Conduct due diligence before entering into a partnership with any vendor, and regularly review their security practices. Make sure your contracts include provisions for data protection and liability in the event of a breach. Remember that a security lapse by one of your vendors could have serious consequences for your business.
Develop an Incident Response Plan
No matter how strong your defenses are, there’s always a chance your business could suffer a breach. Having an effective incident response plan in place allows you to act quickly and minimize damage. This plan should include steps for containing the breach, notifying affected parties, and recovering lost data. Regularly test your response plan through drills to make sure your team knows how to respond in the event of an attack.
Our team at CMIT Solutions SW Jacksonville can help keep your business—and its data—safe from cyberattacks. Contact us today for more information on all our cybersecurity and IT solutions!
