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AI in Cybersecurity

What is a Data Breach?

Discover what a data breach is, how they happen, and the best way to prevent data breaches.

Finite State Team

Finite State Team

October 9, 2024

A data breach is any security incident where unauthorized parties gain access to sensitive or confidential information.

Data breach is often used interchangeably with the term cyberattack. However, this is not technically accurate as not all data breaches are cyberattacks, and not all cyberattacks are data breaches.

Data targeted during breaches include:


  • Social security numbers

  • Bank account numbers

  • Healthcare data

  • Customer data records

  • Intellectual property

  • Financial information

Social security numbers

Bank account numbers

Healthcare data

Customer data records

Intellectual property

Financial information

Why do data breaches happen?

Data breaches happen for three main reasons


  1. Mistakes, e.g., emailing confidential information to the wrong person

  2. Malicious insiders, e.g., disgruntled employees

  3. Hackers, e.g., outsiders committing intentional cybercrimes

Mistakes, e.g., emailing confidential information to the wrong person

Malicious insiders, e.g., disgruntled employees

Hackers, e.g., outsiders committing intentional cybercrimes

Financial gains are the primary drivers of most intentional data breaches. Hackers either steal the money directly using the stolen credentials, take out loans or credit cards in the victims’ names, or sell the personal information on the dark web.

Generally intentional data breaches follow the same basic pattern, regardless of who’s carrying them out.

Step 1: Research

Hackers identify a target and then search for weaknesses in the computer system or employees that could be exploited.

Step 2: Attack

Attack options include social engineering campaigns, directly exploiting vulnerabilities, using stolen log-in credentials, or leveraging other data breach attack vectors.

Step 3: Compromise data

Once inside the system, hackers exfiltrate the data for use or sale, destroy it, or lock out the victim and ransom the access.

How to prevent data breaches

Strong data breach prevention strategies can help organizations prevent data breaches. Strategies include


  • Implement strong password practices and use multi-factor authentication

  • Update software to the latest version when available

  • Visit trusted URLs that start with HTTPS

  • Avoid clicking on links in emails and messages from unknown senders or from known senders you weren’t expecting

  • Provide employee security training

  • Create an incident response plan

Implement strong password practices and use multi-factor authentication

Update software to the latest version when available

Visit trusted URLs that start with HTTPS

Avoid clicking on links in emails and messages from unknown senders or from known senders you weren’t expecting

Provide employee security training

Create an incident response plan

Finite State Team

Finite State Team

The Finite State team brings together experts in cybersecurity, embedded systems, and software supply chain risk to help connected device manufacturers secure their products and comply with evolving global regulations.

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