Wondering What Happens to Your Personal Data After A Company Data Breach? Learn where stolen information goes, how cybercriminals use it, the risks involved, and the steps you can take to protect yourself
What Happens to Your Personal Data After a Company Data Breach
Data breaches are a major cyberattack on businesses or people all over the world. Many business owners & customers will get millions of email notifications every year stating that a company they have trusted has had a security breach and their personal information may have be exposed.
Many people are just confused at first. What did they steal? Who has access to the information? Will hackers use it to steal money or identities? Is there anything you can do after you’ve taken the hit?
What most people don’t realize is that the attack continues long after hackers gain entry to your systems. The information no longer exists in its original out-of-the-way location, but is now part of an intricate black market where personal data is continuously bought and sold or utilized for months or even years beyond the original hack/date of theft.
Understanding how your personal data gets used after a company experiences a data breach has become an important issue in our society because of the changing nature of digital technology. By having some knowledge about what can happen to your personal information (e.g., an email address, password, telephone number, bank account, government identity number etc.), after being stolen, can help you to know what to do next.
This guide provides an overview of the steps involved in the process of a data breach, identifies the potential threats faced by consumers as a result of a data breach, and presents some solutions for consumers to reduce potential harm due to the compromise of their personal information.
A company experiences a data breach when individuals who are not authorized to do so gain access to confidential, protected or sensitive information that the company has stored.
A breach of this kind can arise from any number of sources, including the following:
malware infections
ransomware attacks
insider threats (e.g., a current or former employee that is knowingly taking advantage of their access to business information)
human error (e.g., accidental exposure of data due to careless behavior)
weak passwords (e.g., weak or shared passwords that are either easily guessable or compromise the security of an account)
misconfigured or poorly maintained cloud storage (e.g., cloud-based storage or software that are not properly configured or maintained)
software vulnerabilities
The type of information exposed in a data breach situation, may include:
full names
e-mail addresses
Telephone numbers
mailing addresses
user logins and passwords
credit card numbers
bank account numbers, and
medical records
government-issued identification numbers
Not all breaches are created equal. While some breaches “only” expose basic contact information, others provide hackers access to very sensitive personal data (social security numbers, credit card info, etc.) and/or financial data.
How It Works: What Happens to Your Data After a Breach?
The Journey of Stolen Data – Understanding How Stolen Data Travels Will Show You How Dangerous Stolen Data Will Be a Long Time After the Basic Initial Breach.
The first step in the process is the theft of the data itself.
Cybercriminals will gain access to the data through various methods including:
i. Software Vulnerability – attackers often exploit unpatched vulnerabilities in systems to get the access they require.
ii. Phishing Attacks – employees may fall victim to convincing phishing emails, which will trick them into providing their login credentials to an attacker.
iii. Credentials – many attackers use previously stolen credentials or other user information that was previously breached.
The cybercriminals will search for high-value data within the organization’s network. The cybercriminals are looking for customer data that exists in one or multiple databases.
Step 2: Organization & Extraction of Data
When they gain access, hackers usually take as much information as possible and categorize that information into distinct sets, such as: Customer account information, Financial data, and employee records; Authentication data, and Medical information. The cybercriminals then organize all of this data to make it as valuable as it can be for future exploitation.
The third step involves the stolen data being sold on the underground market. Many people think that once the data is stolen, it is immediately used, but this is not the case. In most cases, the stolen data is made available on cybercrime marketplaces on portions of the internet that are not accessible to the general public. Depending on the type of information, the prices of the stolen data will be different. The following examples illustrate this point:
• Email lists
• Collections of passwords
Credit card number
Passport data
Medical history
Corporate ID
A data value is determined by the completeness and accuracy of the data.
Step 4: The Data is Reviewed by the Criminal Buyers
After purchasing the data, cybercriminals start searching through the stolen information to find ways to make money.
The criminals are looking for these three things:
Passwords used more than once – Many people have the same password for more than one website; therefore, if the criminal obtains a password from one company, that password may work on different websites as well.
Financial information – If any of the stolen information contains banking details, it will probably be a primary focus for attackers.
Targets are highly valued – Executives, entrepreneurs, and other wealthy individuals could represent the targets of targeted attacks
5th Step: Identity Theft Attempt
Identity theft is one of the most serious consequences of all data breaches.Due to the nature of identity theft, criminals will use the stolen Information to commit various crimes, including:
Open Bank Accounts
Apply for Loans
Apply for Credit Cards
Tax Fraud
Fake Identity Creation
Financial Scams
Most times, victims will only realise that such fraud took place after a period of several months since the breach had occurred.
Step 6:
It is becoming easier for criminals that conduct phishing attacks based on the information they have obtained from data breaching events. Stolen information allows cyberattackers to conduct successful phishing campaigns by sending personalised messages; so, people are more susceptible to believing that the message is true. Some examples are:
Bank or credit card institution alerts
Password reset requests
Shipping/Work/Consumer related notifications or offers
Since the attackers can know additional information about their targets, it is more likely that they will respond to that particular message.
Step 7 – Credential Stuffing Attacks Take Place
Credential stuffing is among the most typical activities after a breach occurs.
Once a breach occurs, cybercriminals utilize automation capabilities to conduct credential testing against multiple platforms where the users may have an account, including:
-Bank web sites;
-Social networking;
-Email service providers;
-Online retailers; and
-Digital entertainment streaming services.
If a user reuses any single stolen password across any two or more platforms, this would potentially allow an attacker to gain access to the user’s other accounts as well.
Step 8: Exposure over the long term continues
A common misconception about data breaches is the danger is over very soon. However, in reality, your stolen data may continue being used by cybercriminals for months (even years) after the criminal breach. Your information may also:
-be sold again and again;
-be used in conjunction with information from newer data breaches;
-be used in another fraudulent transaction; and/or
-entered into a database of other stolen information.
Old breaches can still pose new risks long after they happen.
Advantages of knowing the Data Breach Procedure.
No one ever wants to see what they do exposed to others, but there are some benefits to understanding this process.
Quick Reaction to Breach Notification
Individual awareness of breach risks makes it easier to respond to notification of a breach.
Improved Account Protection
By being aware, individuals will have a better chance of using stronger passwords and better authentication.
Reducing Fraud
Individuals who quickly respond to a breach will often be able to prevent the exploitation of their identity after being stolen.
Improved Protection of Money
Knowing what common types of attacks can help users monitor their accounts.
Greater Knowledge of Cyberspace
Knowing what is going on allows people to identify suspicious activities and frauds.
Data Breach Challenges and Risks.
Identity Theft.
The aftermath of a breach carries high identity theft risk. The victims may be required to rectify the fraudulent transactions for an extended duration.
Financial Fraud.
The attack perpetrator may access the bank account, the debit/credit card and other financial information, to perform the illegal transactions before the victims know about it.
Accounts Take Over.
Once their usernames/passwords or logins have been compromised, unauthorized users could access email accounts, social media, work accounts, and on-line marketplaces.
Privacy Violations.
Personal information could disclose personal or family or professional information about persons or businesses or individuals.
Emotional Stress.
A lot of the victims suffer from stress after their information is made public.
The uncertainty of future misuse creates a considerable amount of psychological pressure.
Examples of Real Life Situations
Retail Company Data Breaches
Large retailers have had breaches that exposed the payment information of millions of their customers. The majority of victims have now reported that fraudulent purchases and transactions have been made on their accounts.
Key takeaway.
You need to check your bank and credit card statements on a regular basis.
Breaches of Health Care Facilities
Medical facilities are a major target as medical records are full of private information and unlike passwords, you cannot just change your medical history. The majority of victims have now reported that fraudulent purchases and transactions have been made on their accounts.
Key takeaway.
Ensure to closely monitor all communications and insurance-related activity related to your healthcare providers.
Social Media Platform Data Breaches
Stolen social media accounts commonly expose the victims’ private email addresses, phone numbers, and profile information. Bad Guys generally use this information to phish for more information in the future.
The first thing you learn after being hacked is that you should have had multi-factor authentication turned on for your account(s).
Financial Services Data Breaches
Due to the amount of value in customer records, banks and financial services organizations are under almost constant attack by hackers.
Immediately replace your compromised user credential and check the security of your account.
The Best Way To Protect Yourself Following A Breach
You should immediately replace all passwords that may have been compromised; use a different password for each of your accounts. (This type of approach is easier when you are using a Password Manager)
Turn on 2FA on all accounts.
MFA gives another layer of verification on top of passwords. Even if someone steals credentials, it gets a lot tougher for them
Financial Accounts – Monitoring
Check out Bank
Credit Card Transactions,
Payment App Activity etc.
Look for unauthorized transactions.
Be aware of Phishing Scams
Be Very Careful With Unsolicited:
Emails
Phone Calls
Text Messages
Social Media Messages etc.
Verify all requests independently before you reply.
Check your Credit Report
Always check your credit report for any fraudulent activity or new accounts that are opened without your consent.
Freeze Credit, if Required.
A Credit Freeze will block anyone from opening an account in your name and will be of great help in case a serious breach of your sensitive information has occurred.
Use Identity Monitoring Services.
An identity monitoring tool is capable of sending alerts to users when the system detects the user’s personal information appearing in locations that are considered as “suspicious.”
Staying updated with the latest information
Monitor Updates from Affected Companies:
Identity Monitoring Tools Alert user to locations that are considered “suspicious”
Stay up to date with the latest news.
Future Data Breach Protection Trends:
A I Driven Threat Detection
Companies utilize artificial intelligence to find suspicious activity before a breach escalates.
Continuous Verification Security Framework
Many organizations are adopting the Zero Trust framework, requiring constant verification for all users and devices accessing their networks.
Credential-less User Authentication
Passwords will be eliminated through the use of biometrics and passkeys.
Better data encryption methods
Advanced encryption technology makes it more difficult for stolen information to be used fraudulently.
Stricter Privacy Laws
Government agencies across the globe continue to enact laws requiring quicker disclosure of data breaches and better protection of individuals’ personal information.
Frequently Asked Questions
What steps should I take upon Receiving Notice of a Data Breach?
You should change the passwords of accounts that have been compromised by the data breach, turn on multi-factor authentication to keep your accounts safe from being accessed, monitor your financial accounts for fraud, and check with the affected company on what steps you should take next.
Can a hacker do something with just my email address?
Yes. A hacker can use your email address in a phishing attempt,or credential stuffing attack,or even to target you with a scam.
How long are stolen personal data useful?
In many situations you find stolen data that will have value for thousands of years as it can be bought and/or sold again and again for many years after the original theft has occurred, to be reused in new attacks.
Will i be safe after changing my password?
No, changing your password is one part of the puzzle; best practice is to enable multi-factor authentication (MFA) and monitor your accounts closely for unusual activity.
Will it be possible to reverse all damages caused by a breach?
There aren’t perfect solutions…however, if you act quickly you stand a better chance of avoiding both identity theft and financial fraud.
Conclusion
When a company gets attacked by hackers, it usually sets off a chain reaction of events where your stolen data goes missing for days, weeks or even months. Now when that information is released from the business’ custody it can be repeatedly used for phishing scams, impersonations and further cyber attacks by multiple parties through stolen accounts bought and sold on black markets.
