Businesses need to protect the sensitive information they collect, whether it comes from customers, vendors, or even their own employees. Unfortunately, this kind of information is under constant threat, with the number of security breaches growing by the day. It isn’t just a problem for large corporations either. Security breaches affect businesses of every size and industry. But the consequences can hit especially hard for smaller businesses, where resources are limited and budgets are tight.
According to a recent report, the average cost of a data breach reached $4.4 million in 2024, reaching an all-time high. While that number is driven up by large-scale incidents at major companies, it reflects a larger trend: protecting data is becoming more difficult, and more expensive.
When breaches occur, the financial fallout tends to come from every direction at once. Regulatory fines, legal fees, reputational harm, and data recovery costs can deal a devastating blow to your business. That’s why it’s worth taking the time to understand where your risks lie and how to put the right safeguards in place to protect your data.
In this article, we’ll look at some of the most common causes of data breaches, the costs that often follow, and a few simple steps you can take to reduce your risk.
Not All Security Breaches Are Created Equal
A security breach doesn’t have to culminate in some major dramatic event to cause serious long term damage. Sometimes it’s the result of an honest mistake. Other times, it’s a targeted effort to steal personal information. Whatever the case is, the risks to your business are the same. And because breaches can come from so many different directions, it helps to understand what the risks are so you can set up the proper defenses against them.
Human Error
No one is infallible, and even the most well-meaning employee can make a mistake. It could be something as simple as leaving a sensitive record out in plain sight, sending the wrong attachment in an email, or throwing a record in the trash that should have gone into the shredder.
These kinds of everyday slip-ups open the door to data theft, especially when those records contain personally identifiable information.
Paper records are particularly susceptible in these kinds of situations. Without clear procedures in place, it’s easy for an employee to make the wrong call, and to be honest, these kinds of decisions shouldn’t be left up to them anyway.
Thankfully, there is an easy way to reduce these kinds of issues. For starters, putting a company wide retention policy takes the guesswork out of what to do with records when they are no longer needed, and training staff on how to properly destroy sensitive records can go a long way toward preventing mistakes before they happen.
While its impossible to avoid mistakes all together, a little due diligence and some basic ground rules can go a long way.
Unauthorized Access
Not every breach comes from outside the business. Sometimes it’s someone on the inside, accessing records they shouldn’t. It could be for a legitimate business purpose, or it could be something more malicious. In any case, it’s a problem that is easily preventable.
Access controls give you the ability to decide who can view, edit, or share specific records. They ensure that sensitive information is only available to the people who need it. When used alongside audit logs and user tracking, they also make it easier to monitor activity and hold people accountable if something goes wrong.
Hacked Accounts
If your business offers an online portal or billing platform, it’s important to make sure that those access points are secure. Shared passwords, weak login credentials, or outdated software can create easy entry points for data thieves. Once someone gains access, they might be able to view, copy, or delete sensitive records without raising any red flags.
Even cloud-based platforms pose a risk if they aren’t set up correctly. Misconfigured settings, a lack of encryption, and poor access controls are issues that go unnoticed, often until it’s too late.
Hiring a qualified security professional can help you catch these vulnerabilities before they’re exploited. They can find weak spots in your current setup, from password policies to system permissions, and help you put stronger protections in place, like encryption, activity logging, and two-factor authentication. Taking a proactive approach to digital security is one of the most effective ways to prevent a data breach.
Physical Theft
When sensitive records are left unsecured, whether it’s on a laptop left in a car, a folder left out on a desk, or stuffed in a filing cabinet, they’re at risk. And once a document leaves your office, there’s no way to control what happens to it next.
Unlike digital files, physical records can’t be encrypted or password protected. You can’t track who’s looked at them or recover them if they’re lost. That’s why relying on paper as your primary way of storing information is inherently risky.
Digitizing your records gives you a lot more control. Digital files can be encrypted, stored securely, and accessed only by authorized users. You can also monitor and log activity, which just isn’t possible with paper. If the goal is to keep sensitive data protected, moving away from paper is one of the most effective steps you can take.
Third-Party Leaks
Businesses often need to share information with outside vendors. That includes payroll processors, database administrators, IT support, and off-site storage facilities, just to name a few. But what many people don’t realize is that working with these providers often means giving them access to your data as well.
If that partner doesn’t take data security seriously, it can come back to haunt you. A mistake on their end can still result in a breach, and your business may still be the one held accountable.
That’s why it’s so important to carefully vet any third-party provider before trusting them with your records. Ask about their security policies and how they respond if something goes wrong. And wherever possible, limit the data they can see or interact with to only what’s absolutely necessary.
Protecting Your Business Starts with Smarter Records Management
There’s no single way to prevent a data breach, but there are plenty of small steps you can take to lower your risk. Prioritizing digital security, training your staff, limiting how and where data is shared, all of these make a difference. But one of the most impactful changes many businesses can make is rethinking how their records are managed in the first place.
If you’re still relying on paper, you’re already working at a disadvantage. Physical documents are harder to keep track of, harder to protect, and much easier to lose. Switching to a digital recordkeeping system solves all of these problems, and its easy to do with SecureScan.
For more than 22 years, we’ve been helping businesses switch from paper to digital recordkeeping with our secure document scanning and indexing services. From the moment your records leave your building to the moment they’re delivered back to you digitally, every step of our process is designed with security in mind. We maintain a secure chain of custody, and digitize your records in a controlled, access-restricted environment.
Once your records are scanned, we’ll help you set up a system with the right protections in place, things like encryption, permission-based access, and reliable backup options to help you protect your records. Whether you’re just getting started with electronic recordkeeping or want to improve the system you already have, we’re here to help.
If you’re ready to make records security easier and more reliable, contact us or request a free quote to get started.