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Data breaches are an unfortunate reality for businesses of all sizes, including charities. When a breach occurs, the immediate response is crucial. How a business manages the aftermath can significantly impact their reputation as well as financial stability, reputation, and legal standing.
In 2024, the average global cost of a data breach reached $4.88 million (roughly £3.89 million). However, for charities, the impact extends far beyond financial losses. The breach or loss of sensitive data, such as donor or beneficiary information, can damage vital relationships and disrupt essential operations. Furthermore, as climate change drives an increase in natural disasters and related donation surges, charities are becoming prime targets for phishing scams and other cyber threats.
As a managed service provider (MSP), we have seen firsthand the challenges organisations face during a data breach. Effective damage control requires a well-planned approach, but there are common pitfalls that can exacerbate the situation.
This article will guide you through the key steps of data breach damage control as well as highlighting the pitfalls you should steer clear of to reduce the impact, thereby ensuring your business can recover quickly and maintain the trust of those who rely on your work.
Pitfall #1: Delayed Response
One of the most critical mistakes a company can make after a data breach is delaying the response. The longer it takes to respond, the more damage can happen. A delayed response not only increases the risk of further data loss, it also erodes customer trust.
Act Quickly
Globally, it takes an average of 194 days to identify a data breach, and the average time to contain a breach was 64 days in 2024. Delays like this can significantly increase the damage caused by a breach. As soon as a breach is detected, start your incident response plan. This should include containing the breach and assessing the extent of the damage, as well as notifying affected parties. The faster you act, the better your chances of mitigating the damage.
Engage Legal and Regulatory Authorities
Depending on the nature of the breach, you may need to notify regulatory authorities. Delaying this step can result in legal and financial repercussions. Ensure you understand the legal requirements for breach notification and that you follow them promptly.
Pitfall #2: Inadequate Communication
Inadequate communication leads to misunderstandings, frustration, and further reputational damage. How you communicate with stakeholders matters as it will set the tone for how they perceive your company during a crisis.
Notify Stakeholders Promptly:
We recommend being transparent and addressing three critical points:
- What happened: Provide a straightforward explanation of the breach, avoiding speculation.
- What data was compromised: Specify the information affected and the potential risks.
- What steps are being taken: Detail the actions to contain the breach and prevent recurrence.
Establish Clear Communication Channels
Establish clear communication channels to keep stakeholders informed. This could include:
- A dedicated hotline
- Email updates
- A section on your website with regular updates
Ensure that communication is consistent, transparent, and accurate.
Avoid Jargon and Technical Language
When communicating with non-technical stakeholders, avoid using jargon. The goal is to make the information accessible and understandable. Clearly explain what happened, what steps are being taken, and what they need to do.
Provide Regular Updates
Keep stakeholders informed with regular updates as the situation evolves. Even if there is no new information. Providing regular updates reassures stakeholders that you are actively managing the situation.
Pitfall #3: Failing to Contain the Breach
Another critical mistake is failing to contain the breach quickly. Once your business detects a breach, take immediate action as mentioned previously. This will help prevent further data loss. Failure to do so can result in more significant damage.
Isolate the Affected Systems
The first step in containing a breach is to isolate the affected systems. This may involve:
- Disconnecting systems from the network
- Disabling user accounts
- Shutting down specific services
The goal is to prevent the breach from spreading further.
Assess the Scope of the Breach
Once you contain the breach, assess the scope of the damage. Identify what data was accessed as well as how someone accessed it and the extent of the exposure. This information is crucial for informing stakeholders and determining next steps.
Deploy Remediation Measures
After assessing the scope of the breach, deploy remediation measures. They should address the exploited vulnerabilities. Ensure that your company takes all necessary steps to prevent a recurrence.
Pitfall #4: Neglecting Legal and Regulatory Requirements
Failing to comply with legal and regulatory obligations can result in severe penalties. Many jurisdictions have strict data protection laws. These laws dictate how businesses must respond to data breaches. Failing to comply can result in significant fines and legal action.
Understand Your Legal Obligations
Familiarise yourself with the legal and regulatory requirements in your jurisdiction. This includes understanding the timelines for breach notification as well as the specific information your company must provide and who you must notify.
Document Your Response
Documenting your response to a data breach is crucial for charities and businesses alike to demonstrate compliance. This documentation should include:
- Timeline of events – capturing when the breach was detected, and the subsequent actions taken
- Steps taken to contain the breach – outlining measures such as isolating affected systems and addressing vulnerabilities
- Communication with stakeholders – including donors, beneficiaries, and regulatory bodies, ensuring transparency and clarity
As an MSP, we assist charities and organisations by:
- Compiling incident reports that outline the scope of the breach and remediation efforts.
- Providing structured templates to help businesses and charities meet regulatory requirements, such as GDRP or local data protection laws.
- Archiving findings and recommendations for future audits and improved security practices.
By ensuring every step is documented, businesses and charities can demonstrate due diligence, minimise the risk of regulatory penalties, and build a foundation of trust with their stakeholders.
Pitfall #5: Overlooking the Human Element
The human element is often overlooked in data breach response. Human error can contribute to the breach and the emotional impact on employees and customers can be significant. Addressing the human element is essential for a comprehensive response.
Support Affected Employees
As a business providing employees with support if the breach compromised their data, we recommend:
- Offering credit monitoring services
- Providing clear communication
- Addressing any concerns they may have
Supporting your employees helps maintain morale and trust within the organisation.
Address Customer Concerns
Customers may be anxious and concerned after a data breach. Address their concerns promptly and empathetically. Provide them with clear instructions on steps they can take to protect themselves. Offer help where possible, as a compassionate response can help maintain customer loyalty.
Learn from the Incident and Prepare for the Future
Finally, use the breach as a valuable learning opportunity. Conduct a thorough post-incident review to identify what went wrong and how it can be prevented in the future. Use the insights gained to deploy training and awareness programs to educate employees on data security best practices.
Employee education is a crucial part of prevention. Implement training and awareness programs to ensure your team understands data security best practices and can recognise potential threats.
To support this effort, VirtueUK offers:
- A Free Phishing Test: Identify which employees might be vulnerable to phishing attacks and see how your organisation compares to others.
- Phishing Awareness Training: Equip your team with the skills to recognise and avoid targeted threats, bolstering your overall cybersecurity posture.