How Data Breaches In Tech Companies Can Cost You

How Data Breaches in Tech Companies can Cost You

Emmanuel, a graphic designer, received the biggest shock of his life sometime in 2019. He had attempted but was unable to join the TkTok gang. His email address had already been used to sign up for the app, according to the app.

He was quite perplexed; he was certain he had never signed up before. After attempting multiple times without success, he decided to conduct a name search on the app. To his surprise, he discovered he was already a member of the app and had amassed over 5,000 followers.

That was not all; the account used his photograph as its profile image and promoted Ponzi schemes and other get-rich-quick schemes. Many people, like Emmanuel, are in the dark. Their identities have been stolen from them and they are unaware.

These types of identity theft became possible as a result of the information exposed during data breaches at technology companies. The same data breaches that the majority of tech users overlook.

Many people are unaware that the highly sensitive and private data they provide to technology platforms can be stolen in the event of a data breach. This means that the information you provided when signing up, such as your name, e-mail address, phone number, address, and date of birth, can all be stolen in a well-planned attack.

Armed with this type of information, criminal elements can wreak havoc in a variety of ways, which I will discuss later.

The Danger

From the recent Facebook data breach that exposed the personal information of over 530 million users to the reported leak of the personal information of 1.3 million Clubhouse users and 500 million LinkedIn users, data breaches continue to dominate headlines worldwide.

Within the first nine months of 2019, over 5,183 breaches were reported and over 7.9 billion records were compromised, according to a Risk-Based Security research report.

According to another study conducted by the Better Business Bureau, 22% of small businesses have been the target of cyberattacks. And roughly 11% of these incidents occurred within the last year.

This demonstrates that, despite increased emphasis on data security, cybercriminals are developing new methods for infiltrating, exposing, and profiting from valuable company data.

Regrettably, the alarming increase in data breaches demonstrates that many organizations are woefully unprepared and fail to implement the fundamental security measures necessary to prevent data breaches.

According to a recent Kaspersky study, more than half (57 percent) of recipients do not have a cybersecurity policy in place.

This complacency exposes users to significant risk and places them in the middle of a shark-infested sea. Several of the more severe consequences of a data breach include the following:

1) Identity theft

As mentioned at the outset, many users are unaware that they are being impersonated. With access to a person's full name, date of birth, and email address, anyone can easily create a TikTok or other platform account.

For instance, the information contained in Facebook's recent data breach is sufficient to create an account using a stolen identity, as was the case with Emmanuel. Similarly, Derek Vinebo discovered that his BVN had been compromised when he attempted to use it on the Carbon App.

While some may disregard stolen identity, the reality is that if the account is used for criminal purposes, it can be traced back to you. This means that without proper evidence, you can find yourself in serious legal trouble for something you have no knowledge of.

2) Financial loss

This is one of the most common fears, but many people do nothing until they become victims. The truth is that when personal information is made public, it makes it easier for people to fall for financial scams.

Because you have no idea what information scammers have on you, it is prudent to exercise caution. If they obtain all of the permissions necessary to circumvent all safeguards, they can empty your account in a matter of seconds.

3) Fool proof scams

Receiving a scam message or being the target of a phishing attack is unsurprising, and failing to protect your personal or sensitive information exposes you to significant risk.

This is because scammers can now craft foolproof scams. The messages will be so deceptive that you will almost believe them to be true due to their accuracy.

When a scam caller correctly enters your bank's name, account number, and email address, anyone could be fooled into believing the caller is legitimate. However, he is not, and all of these issues are the result of data breaches.

4) Invasion of Privacy

Many Africans, including Nigerians, are not as concerned with privacy as Europeans or Americans are, but it is critical. Anyone can discover private information about you online using only your name and picture, whether on social media or elsewhere.

As a result, sensitive information such as an address may fall into the hands of criminal elements. Thus, both physical and online protections are contingent upon privacy.

For instance, if a hacker discovers your preferences as a result of a data breach, he can tailor these desires as clickbait in order to hack and steal from you.

5) Reputation Damage

This is an extended effect of Identity Theft. When one's identity is used to perpetuate a scam, it can have a detrimental effect on one's reputation, even if the scam is later discovered and dismissed.

This is because not everyone will believe you did not commit the crime, given that you are the face of it. It could even result in a criminal investigation, dragging your name through the mud.

A good example is last year's Twitter cryptocurrency scam, in which hackers hijacked the accounts of Elon Musk, Joe Biden, and Bill Gates, among other prominent users, in order to perpetuate the scam.

In Summary

Regardless of how well-prepared a technology platform is against a data breach, the possibility of one still exists. This is why you should be sufficiently inquisitive to determine whether your data has been compromised when a breach is discovered.

This way, you can take proactive measures to avoid the above-mentioned consequences. There are also additional personal protection strategies you can implement that safeguard sensitive data, reduce threats, and safeguard your data.