Data Privacy Day: How to Protect Your Business From Costly Data Breaches

January 28 is Data Privacy Day—a global reminder of how vital it is to safeguard sensitive information. For businesses across the United States, data privacy isn’t just a buzzword; it’s a critical component of protecting your bottom line.

Data breaches are becoming more frequent, with costs averaging $4.35 million per incident in 2023, according to IBM’s Cost of a Data Breach Report. The good news? By taking the right steps, you can minimize your risks and keep your business secure.

Why Data Privacy Matters for Small Businesses

Many small and midsized businesses (SMBs) assume they’re too small to be targeted by cybercriminals. Unfortunately, this misconception leaves them vulnerable. In fact, 43% of cyberattacks target small businesses, and many lack the resources to recover from a significant breach.

The consequences of a data breach can be devastating:

Financial Losses: Ransom payments, fines, and legal fees can quickly add up.

Reputational Damage: Losing customer trust often results in lost business.

Operational Disruption: Downtime from breaches can paralyze operations, impacting revenue and productivity.

What Types of Data Are Cybercriminals After?

Hackers target any valuable data they can exploit, including:

Customer Information: Credit card numbers, addresses, and login credentials.

Employee Records: Social Security numbers, health information, and payroll data.

Business Financials: Bank account details, invoices, and trade secrets.

Common Ways Cybercriminals Steal Data

Cybercriminals continually evolve their methods, but some of the most common tactics include:

Phishing: Tricking employees into revealing sensitive information via fake emails or links.

Ransomware Attacks: Locking you out of data and demanding payment to regain access.

Weak Passwords: Exploiting simple or reused passwords to infiltrate systems.

Unsecured Networks: Intercepting data on public WiFi or unprotected networks.

Taking proactive measures is essential to reduce the risk of falling victim to these threats.

5 Steps to Strengthen Your Data Privacy

1. Know Your Data

The first step is understanding what data you have and where it’s stored. Conduct a data inventory to identify:

Customer information.

Employee records.

Financial details.

Access permissions for each data set.

Quick Tip: Only collect and store what you truly need—less data equals less risk.

2. Encrypt Everything

Encryption converts sensitive data into unreadable code, making it useless to hackers without the decryption key. It should be standard practice for emails, databases, and file transfers.

Pro Tip: Apply encryption both in transit and at rest for maximum security.

3. Implement Strong Access Controls

Not every employee needs access to all data. Use the principle of least privilege (PoLP) to ensure team members can only access what’s necessary for their role.

Example: Your HR team doesn’t need access to marketing campaign data.

4. Train Your Employees

Human error is one of the leading causes of data breaches. Regular training on data privacy best practices can drastically reduce risks.

Topics to Cover:

Recognizing phishing attempts.

Safeguarding devices in public spaces.

Reporting suspicious activity promptly.

Statistic: 88% of data breaches result from employee mistakes, according to Stanford University research.

5. Partner with a Trusted IT Provider

Managing data privacy is complex, and SMBs often don’t have the resources to handle it alone. Partnering with a managed IT provider like Empowering Technology Solutions can help:

Conduct regular audits to identify vulnerabilities.

Monitor systems for potential threats.

Provide rapid responses to security incidents.

Don’t Leave Data Privacy to Chance

Data breaches don’t just cost money—they can destroy your reputation or even your business. This Data Privacy Day, take the opportunity to review and strengthen your security practices.

Start with a FREE Network Assessment to uncover vulnerabilities and ensure your business is protected against costly breaches.

Click here to schedule your FREE assessment and take control of your data privacy today!

Let’s make 2025 the year your business stays one step ahead of cyber threats.