When a database is hacked, it can have serious consequences for the organization that owns the database as well as the individuals whose personal data is stored in the database. A database hack can lead to data breaches, identity theft, financial fraud and regulatory fines. Understanding what happens when a hack occurs and how to prevent database hacks is crucial for any organization that stores sensitive data.
How do databases get hacked?
There are a few common ways that hackers can gain unauthorized access to databases:
- Exploiting vulnerabilities in database software like SQL injection or buffer overflow attacks
- Guessing or cracking weak database passwords
- Stealing database login credentials through phishing attacks or malware
- Abusing database privileges by gaining access as an authorized user
- Exploiting misconfigured database security settings like excessive permissions
- Physically accessing database servers in data centers through social engineering
Once a hacker gains entry to a database, they can steal data, make unauthorized changes, or even delete or corrupt data. Advanced hackers may attempt to gain control over the entire database server.
What data is at risk when a database is hacked?
Nearly any type of sensitive data stored in a database could be exposed and compromised in a breach:
- Personal identifiable information like names, addresses, birthdates, etc.
- Financial data such as credit card numbers, bank account details
- Medical records containing healthcare data covered by HIPAA
- Authentication credentials like usernames and passwords
- Confidential corporate data including trade secrets and intellectual property
This data can then be used to commit identity theft and financial fraud or be sold on the dark web. Hackers may also alter or corrupt the data, making it unusable for the organization.
How does a database hack lead to a data breach?
A database hack in which sensitive personal data is exposed leads to a data breach. Under many regulations and laws around the world, organizations are required to report data breaches when they occur:
- In the United States, data breaches must be reported under regulations like HIPAA and various state laws
- The European Union’s General Data Protection Regulation (GDPR) requires breach reporting within 72 hours
- Australia, Canada, and many other countries have mandatory breach notification laws
When a breach is reported, the organization must disclose details like the number of records exposed, the types of data compromised, and the number of individuals potentially impacted. Data breach notifications are now commonplace globally.
What are the consequences of a database breach?
A database hack and subsequent data breach can have major legal, financial, and reputational impacts:
- Regulatory fines and penalties – Organizations can face fines in the millions of dollars for data breaches under GDPR, HIPAA, and other regulations for failing to protect data.
- Lawsuits – Class action lawsuits may be filed on behalf of impacted individuals seeking compensation.
- Notification costs – Mailing breach notices and providing credit monitoring services gets very expensive for large breaches.
- Lost business – Customers lose trust after a breach and may switch to competitors.
- Negative publicity – Breaches harm brand reputation and public perception of the organization.
A 2020 IBM study found the average total cost of a data breach is $3.86 million globally.
How can organizations prevent database hacks?
While no data security is impenetrable, organizations can take steps to significantly reduce the risk of a database hack:
- Use encryption to render stolen data unusable without the key
- Install database firewalls and intrustion detection systems
- Enable database activity monitoring to catch attacks
- Utilize strict password policies and role-based access controls
- Never expose the database to the public internet
- Keep all software patched and updated to close vulnerabilities
- Require multi-factor authentication for all database access
- Conduct frequent security audits to find misconfigurations
- Provide security training to teach personnel cyber hygiene
With proper precautions in place, organizations can greatly reduce cyber attack surface on their databases and protect the sensitive data entrusted to them.
What does a hacked database look like?
When a database has been compromised by hackers, there are usually telltale signs that can reveal the breach:
- Unexpected high database server CPU usage
- Spike in outbound database traffic
- Disabled or altered database logs
- Tables and files missing from the database
- Malicious database procedures and triggers
- Modified database records that don’t match application logs
- Unfamiliar administrator accounts
- SQL injection entrada in web application logs
However, advanced hackers may be able to erase their tracks and alterations, or prevent logging their activities, making some breaches harder to detect. Regularly monitoring for any unusual database activity is key.
How are data breaches investigated?
After a database hack is discovered, a rigorous forensic investigation takes place to determine the extent of the breach and how to remediate it. Steps include:
- Isolate the compromised database from the network to prevent further exposure
- Take encrypted copies of the database for forensic analysis in a sandbox environment
- Inspect all audit and database logs closely for anomalies
- Determine the timeframe of the initial compromise and hack duration
- Identify which specific data was realistically exposed based on forensic artifacts
- Interview database administrators and application owners to identify additional evidence
- Trace hacker activity and determine how access was gained
- Assess and mitigate any backdoors or vulnerabilities that allowed the hack
Thorough investigation provides evidence needed to assess damage accurately and prevent future recurrence of the breach.
How are impacted individuals notified after a breach?
Once a data breach investigation confirms personal data exposure, notification is sent to impacted individuals. Methods of notification include:
- Letters sent through postal mail
- Email notices to any known email addresses
- Text messages or telephone calls
- Website notices and press releases
- Social media postings
Notifications provide details on what happened, types of data involved, steps being taken to secure data, and measures the individual can take to protect themselves from identify theft and fraud. Organizations also typically offer free credit monitoring services.
What can impacted individuals do to protect themselves?
Those impacted by a data breach exposing personal information should take measures to minimize the chances of becoming an identity theft victim:
- Enroll in free credit monitoring services offered by the breached organization
- Place fraud alerts on credit files with the major credit bureaus
- Reset passwords, especially for any financial accounts
- Review credit card and bank statements for suspicious activity
- Consider enrolling in identity theft protection services
- Be vigilant against phishing using exposed account credentials
- File your taxes early to prevent fraudulent filings
Individuals should also beware of any communications claiming to be related to the breach, as scammers will take advantage by posing as the breached organization and asking for sensitive information.
How do laws and regulations aim to prevent data breaches?
Governments worldwide have enacted data protection laws and regulations to require organizations to secure personal data they collect and store:
- HIPAA in the US requires safeguards for medical and healthcare data
- GDPR in the EU mandates data security and breach notification processes
- Australia’s Privacy Act imposes standards for handling personal information
- Canada’s PIPEDA data privacy law requires organizations to protect data
These laws establish large fines and penalties for non-compliance, negligence resulting in breaches, and failing to properly notify impacted individuals. They provide an added incentive for robust data security.
What cyber insurance policies help cover breach costs?
Organizations can purchase cyber insurance policies to help minimize financial impacts of hacks and data breaches. Standard policies may cover costs like:
- Legal defenses and settlements for lawsuits
- Regulatory fines and penalties
- Public relations services
- Forensic investigations
- Fraud monitoring for breach victims
- Expenses to notify impacted individuals
Policies with higher coverage limits are available for organizations with substantial data security risks. While insurance cannot prevent breaches, it helps mitigate costs that can reach millions of dollars depending on breach size.
How do organizations recover after a data breach?
Recovering from a data breach requires technical, operational and reputational efforts:
- Reset all user passwords and credentials to prevent reused compromised logins
- Deploy patched and updated software and security tools across infrastructure
- Implement stronger data security protections to prevent repeat incidents
- Provide updated staff training on privacy and security processes
- Wait for forensic investigation results before making public PR statements
- Express sincere transparency, accountability and commitment to those affected
Depending on the scale, organizations may need to invest substantially and expend major efforts to fully recover trust and restore their operations and reputation after a major hack or breach.
How can organizations prevent future database hacks?
Learning from any incident, organizations should take these key steps to enhance database security and prevent future attacks:
- Perform exhaustive audits of the full database environment and infrastructure
- Identify and eliminate any potential overlooked access vectors
- Implement stricter least privilege and access controls
- Encrypt sensitive data fields and connections end-to-end
- Install activity monitoring and anomaly detection tooling
- Hire outside experts to penetration test defenses and processes
Addressing vulnerabilities exposed by any breach through enhanced controls and improved processes is crucial for preventing repeat incidents in the future.
Conclusion
Database hacks lead to damaging data breaches that severely impact organizations and individuals alike. Understanding what happens when databases are compromised by attackers is key for preventing successful cyber attacks through rigorous security measures and practices. With strong data protections and controls in place, companies can gain trust and minimize risks of serious data breaches resulting from database hacks in the future.