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Is it Time to Start Looking for Cloud RADIUS Solutions?

The proliferation of IoT devices is revolutionizing industries, from healthcare to manufacturing to smart cities. By 2030, there could be nearly 25 billion IoT devices in use globally. These devices—smart thermostats, connected medical equipment, industrial sensors, and more—are reshaping how we think about the edge of the network. But as they do, they’re also introducing a vast array of new security challenges. Traditional network security measures were never designed to account for IoT, leaving organizations vulnerable and in need of a new approach.

The Rise of IoT & Its Security Challenges

IoT devices have become indispensable. In healthcare, connected monitors transmit patient data in real time. Manufacturing relies on industrial IoT (IIoT) sensors to optimize production. Even office buildings are becoming “smart,” with connected HVAC systems, lighting, and badge readers. The convenience and efficiency offered by IoT are undeniable, but they come with significant risks.

Most IoT devices weren’t built with security in mind. Many ship with hardcoded passwords that users never change. Others lack mechanisms for software updates or patches, making them vulnerable to exploitation long after deployment. This lack of built-in security becomes a serious liability when you consider that each IoT device represents a new entry point into your network.

As the number of devices grows, so does the attack surface. IoT devices are often used as stepping stones by attackers to move laterally within a network or to launch large-scale attacks. The infamous Mirai botnet, for instance, leveraged unsecured IoT devices to launch distributed denial-of-service (DDoS) attacks that disrupted major websites.

Why Traditional Network Security Falls Short

Legacy security approaches simply aren’t equipped to handle the unique challenges posed by IoT devices. Firewalls, VPNs, and traditional endpoint security tools were designed for a time when networks were more centralized and devices were fewer and more manageable. With IoT, the game has changed.

The biggest issue is visibility—or the lack thereof. IT teams often don’t know how many IoT devices are connected to their networks, let alone their security posture. Unlike corporate laptops or servers, IoT devices are rarely subject to the same onboarding and compliance checks. This creates blind spots where malicious actors can hide.

Another problem is policy enforcement. Even if you can identify an IoT device, traditional tools struggle to apply granular security policies to these devices. For instance, a smart thermostat doesn’t need to communicate with financial servers, yet traditional network setups may not have the means to enforce such segmentation.

Finally, many organizations rely on fragmented security tools that don’t work well together. Managing firewalls, endpoint protection, and network monitoring tools from different vendors can lead to gaps in coverage and slow response times—an especially dangerous combination when dealing with IoT threats.

A New Approach to Securing IoT at the Edge

To address these challenges, organizations need to adopt a modern, holistic approach to securing their networks. Here are the key components:

1. Zero Trust Architecture

Zero Trust operates on the principle of “never trust, always verify.” This approach assumes that no device—whether inside or outside the network perimeter—should be trusted by default. For IoT security, this means verifying every device attempting to connect to the network, enforcing strict access controls, and continuously monitoring for anomalies.

With Zero Trust, organizations can apply micro-segmentation, which isolates IoT devices into their own network segments. This ensures that even if a device is compromised, the attacker’s lateral movement is limited. For example, a smart printer in a corporate office should only communicate with its print server—not with HR systems or email servers.

2. Network Access Control (NAC)

Modern Network Access Control (NAC) solutions are critical for managing IoT security. Unlike traditional NAC, which often requires on-premises hardware, cloud-native NAC solutions provide scalability and ease of management.

These solutions enable IT teams to:

  • Discover all devices connected to the network, including unmanaged IoT devices.
  • Assess device posture to determine whether they meet security policies (e.g., updated firmware, closed ports).
  • Enforce automated access policies, ensuring that non-compliant devices are isolated or denied access entirely.

With NAC, organizations can regain visibility and control over their IoT ecosystem, closing gaps that attackers could exploit.

3. Real-Time Monitoring and Threat Detection

Continuous monitoring is essential for IoT security. By analyzing network traffic patterns in real time, organizations can detect suspicious behavior that might indicate a compromised device. For example, if a smart fridge suddenly starts communicating with an unknown server in a foreign country, that’s a red flag.

Advances in artificial intelligence and machine learning are making it easier to identify these anomalies. AI can quickly analyze vast amounts of network data to spot patterns that would be missed by human analysts. These insights enable faster threat detection and response, minimizing the impact of potential breaches.

The Role of IoT Governance

Technology alone isn’t enough; organizations also need robust governance policies to manage IoT security effectively. This includes:

  • Device Authentication: Establishing processes for securely onboarding IoT devices, including verifying their authenticity before granting access.
  • Firmware and Patch Management: Regularly updating devices to address known vulnerabilities.
  • Procurement Policies: Ensuring that all IoT devices purchased meet a baseline level of security.
  • Decommissioning Procedures: Properly removing devices from the network when they are no longer in use.

By implementing these governance measures, organizations can reduce the risks associated with IoT devices and maintain long-term security.

Securing the Edge Today & Tomorrow

The explosion of IoT devices has redefined the network edge, rendering traditional security measures insufficient. To stay ahead of threats, organizations must embrace modern strategies like Zero Trust, cloud-native NAC, and real-time monitoring. At the same time, effective governance policies are essential to ensure that IoT devices remain secure throughout their lifecycle.

As IoT continues to evolve, so too must our approach to securing it. The stakes are too high to rely on outdated methods. By investing in the right tools and frameworks today, organizations can protect themselves from the threats of tomorrow.

About Portnox
Portnox provides simple-to-deploy, operate and maintain network access control, security and visibility solutions. Portnox software can be deployed on-premises, as a cloud-delivered service, or in hybrid mode. It is agentless and vendor-agnostic, allowing organizations to maximize their existing network and cybersecurity investments. Hundreds of enterprises around the world rely on Portnox for network visibility, cybersecurity policy enforcement and regulatory compliance. The company has been recognized for its innovations by Info Security Products Guide, Cyber Security Excellence Awards, IoT Innovator Awards, Computing Security Awards, Best of Interop ITX and Cyber Defense Magazine. Portnox has offices in the U.S., Europe and Asia. For information visit http://www.portnox.com, and follow us on Twitter and LinkedIn.。

About Version 2 Limited
Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

What can someone do with your IP address?

 

Summary: IP-related cyber risks can’t be ignored. Learn how to secure your business with a VPN, firewalls, and IP allowlisting.

Your company’s Internet Protocol (IP) address might seem harmless. After all, it’s just a string of numbers, right? Not quite. In the wrong hands, it can become a tool to cause serious harm. Cybercriminals can track your location, scan your network for weaknesses, and disrupt your systems with cyber-attacks. The risks related to an IP address are real, from DDoS attacks to phishing schemes and impersonation.

So, what can someone do with your public IP address? How could they find it? And most importantly, how can you protect your company from these risks? Let’s explore.

Key takeaways

  • An Internet Protocol address is a unique numeric identifier for your business’s internet connection, revealing its exact location. Without a VPN, your IP address is public and vulnerable to cybercriminals.
  • How can someone find your IP address? It can be accessed legally through emails, website clicks, and social media, or illegally through unauthorized device access or social engineering attacks.
  • If your public IP address is exposed, attackers could launch phishing schemes, DDoS attacks, or ransomware attacks. They could also exploit your internet connection to carry out malicious activities, damage your reputation, or steal sensitive data.
  • Protecting your IP address is key. Using a Virtual Private Network (VPN), IP allowlisting, and updating network security can limit access to your network connection.
  • A dedicated IP address can help protect your business’s identity online.
  • Businesses must protect IP addresses to comply with legal regulations like GDPR and CCPA, which keep customer data safe.

 

How someone can find your business’s IP address

Your business’s Internet Protocol address is more than just a technical detail—it’s a crucial identifier. While it’s necessary to connect to the internet, it can also reveal sensitive information about your company, like its exact location. You can easily look up your IP address, which often shows your region, state, or even city.

While this data is typically used for non-malicious purposes, it still reveals valuable information about your business. Cybercriminals, competitors, or even disgruntled former employees can track your IP address and use it to gather insights, launch attacks, or damage your reputation.

What an IP address reveals about your business

There are many ways someone can access your business’s IP address. While most of these methods are legal, they can be used maliciously, potentially harming your company. Understanding how your IP address might be exposed can help you take action to protect your company. Here is how your business’s IP address could be accessed.

Legal methods to find your business’s IP address

  • Through email: Some email platforms include your IP address in the heading. A recipient could copy it and use it to track you or shield their own IP address.
  • By clicking on an image in an email: Embedded images can track your IP address when you open them, which could lead to phishing or other attacks on your business.
  • Through public social media comments: If an employee comments on social media, your IP address could be traced, revealing your location and making your company more vulnerable to cyber threats.
  • Court orders: Law enforcement or lawyers involved in a criminal or civil case may obtain a court order to access your business’s IP address and related data.

 

Illegal ways to find your company’s IP address

  • By physically accessing your business devices: If someone gains physical access to your device without your knowledge, they can obtain your business’s IP address within seconds.
  • By using social engineering attacks: Cybercriminals can get your company’s IP address by impersonating someone your employees trust, like a colleague or vendor, and convincing them to share the address.
  • By connecting to your company’s network: Anyone connected to your business network can easily find your IP address, as the same IP is shared across devices. If unauthorized access occurs, your business’s IP could be exposed and exploited, risking your data and security.

Protecting your IP address is key for businesses to safeguard privacy and security. Steps like using a VPN, updating network security protocols regularly, and educating employees about safe internet practices can help keep your business safe from cyber threats.

 
 

Top risks to your business IP address

Your business’s Internet Protocol address is a tasty target for cybercriminals. From phishing scams to DDoS attacks, here are the biggest threats to watch out for.

What threat actors can do with your IP address

Cyber-attacks

An IP address alone doesn’t allow cybercriminals to control your computer or impersonate you online. It’s simply a numeric identifier for your device that reveals general information about your geolocation.

However, if threat actors gain access to your company device(s) through a cyber-attack, they can use your company’s IP address to carry out malicious activities in your name. Here are some examples of how this can affect your business:

  • Phishing emails: Cybercriminals can send phishing emails from your company’s IP, tricking others into sharing sensitive data or installing malware.
  • Distributed Denial of Service (DDoS) attacks: Attackers can launch a DDoS attack using your company’s IP address, flooding a target website or server with traffic and causing it to crash.
  • Exploiting services: If your company uses public-facing services, attackers can exploit vulnerabilities to launch attacks on other businesses, using your IP address to mask their location
  • Spamming: Threat actors can send out bulk spam emails from your company’s IP, harming your reputation and getting your address blacklisted by email providers.
  • Botnet activities: Attackers can add your company’s device to a botnet, using your IP address to conduct illegal activities like cryptocurrency mining or distributing malware.
  • Ransomware attacks: Using your business’s IP address, bad actors can infiltrate your systems, encrypt critical data, and demand a ransom for its release while appearing to act from within your network.
  • Man-in-the-Middle (MITM) attacks: Hackers spoof an IP address to intercept and alter communication between two computers. This lets them steal data, redirect users to fake sites, and gather valuable information to sell or exploit.
  • Dark web threats: Your IP address and other sensitive data can be sold on the dark web. On its own, an IP address isn’t worth much, but it can be bundled with personal details like usernames or login credentials.

 

Competitor scraping

Competitor scraping involves using automated tools to collect sensitive data, such as pricing, product details, or proprietary content, from competitors’ websites. These scraping tools often rely on IP addresses to access and extract information.

Malicious actors may use rotating IPs or proxies to bypass IP-based restrictions, making it harder to detect and block their activities. This practice threatens intellectual property by allowing competitors to unfairly undercut pricing or steal content, which can harm a business’s reputation and search engine rankings. To protect your business IP, you need strong security measures, including bot detection, API monitoring, and IP blocking, to prevent unauthorized access and data theft.

Reputation damage

Reputation damage is a significant concern when it comes to IP address abuse, especially in the context of intellectual property theft. When a company’s IP is stolen or misused, it can severely damage its reputation, even if the theft isn’t immediately discovered or publicly disclosed.

Since many companies only report cyber-attacks when sensitive customer information—such as medical or financial data—is compromised, the theft of intangible assets like designs or trade secrets often goes unnoticed by the public. As a result, competitors or malicious actors may exploit stolen IP to gain an unfair advantage, further eroding trust and brand credibility. Over time, this reputation damage can lead to a loss of customer confidence, decreased business growth, and a weakened competitive edge.

 

What can IP address leaks lead to?

IP address leaks can lead to significant cyber risks, including IP spoofing. In IP spoofing, attackers alter IP packet headers to disguise their identity and impersonate trusted sources. This method is often used to bypass authentication, launch DDoS attacks, or gain unauthorized network access. While there haven’t been many high-profile incidents, the threat remains substantial.

#1 GitHub DDoS attack

  • What happened: In February 2018, GitHub, a widely used code hosting platform, faced one of the most significant DDoS attacks ever recorded. Bad actors spoofed GitHub’s IP address in a coordinated attack that caused the platform to experience nearly 20 minutes of downtime.
  • Who was affected: GitHub and its users.
  • Key learning: Measures like traffic rerouting and data filtering are crucial for mitigating DDoS attacks.

#2 Europol Man-in-the-Middle attack

  • What happened: In 2015, Europol uncovered a large-scale attack where hackers used IP spoofing to intercept and change payment requests between businesses and customers, sending funds to fake accounts.
  • Who was affected: Many businesses and customers were involved in fraudulent transactions, as well as the organizations’ reputation and security.
  • Key learning: Secure your communication channels and email systems to prevent unauthorized access.

#3 Zephyr OS vulnerability

  • What happened: In October 2024, a vulnerability in Zephyr OS was found that allowed attackers to exploit IP spoofing to launch DDoS attacks. This flaw could result in system instability or crashes.
  • Who was affected: Organizations using Zephyr OS in their systems and services were at risk of disruption.
  • Key learning: Regularly update your systems to fix vulnerabilities before attackers find them.

Additionally, IP spoofing poses challenges in cloud environments, especially in systems using reverse proxies. Attackers can manipulate IP addresses to bypass security measures, making robust protection essential for organizations.

Comparing shared and dedicated IP: which offers better security?

A shared IP address is used simultaneously by multiple users, with all data routed through the same server. This setup is common in web hosting, where many websites share the same server and IP address. It is also used in email marketing, where senders share an IP for email delivery. Sharing resources reduces costs but can create challenges, such as reputational risks.

A dedicated IP address, however, is assigned to just one organization. This makes it ideal for secure web hosting, Virtual Private Networks (VPNs), and services that need a reliable, consistent connection. In email marketing, dedicated IPs give you full control over the sender’s reputation and deliverability.

An IP address can also be dynamic or static. Dynamic IPs change periodically and are often used for general browsing and temporary connections. A static IP remains fixed and is better for hosting websites, running servers, or secure remote access.

The pros & cons of a shared IP address

What are the benefits of a shared IP address?

  • Affordability: Shared IPs are more cost-effective, making them an attractive option for small businesses’ websites hosted on shared servers.
  • Ease of use: Shared IPs are simple to set up for web hosting, email services, or VPNs. They typically require minimal technical expertise.
  • Reputation pooling: In shared web hosting or email environments, the pooled reputation of users can be a benefit. For example, in email marketing, new senders may benefit from the positive reputation of others using the same IP, potentially improving their deliverability.

However, a shared IP address comes with risks, such as:

  • Potential reputational damage: Activities by other users, such as spamming, hosting malicious websites, or engaging in phishing, can harm the shared IP’s reputation.
  • Limited control: Sharing an IP reduces control over performance and security, which can be critical for businesses managing sensitive data or hosting high-traffic websites.

When to use a shared IP

Shared IP addresses work well for businesses with smaller needs, such as hosting websites, sending low volumes of email, or using VPNs for general browsing. They’re cost-effective and convenient for starting out or operating on a budget.

If your business needs more security and control, a dedicated IP address is a better option. While it costs more and takes extra effort to manage, it offers better reliability, security, and control, making it ideal for larger or high-demand needs.

6 steps to protect your business’s IP address

Your IP address is like a neon sign for cybercriminals—if they spot it, you’re on their radar. But don’t panic. With a few simple steps, you can throw up the barriers and keep your business safe from attacks.

6 steps to protect your IP address

Step #1: Invest in DDoS protection

Cloud firewalls are particularly useful in defending against DDoS attacks, as they filter out malicious traffic and block certain attack types.

However, additional DDoS protection measures are often necessary for a complete defense that combines firewalls with threat prevention solutions.

Step #2: Use a VPN for encrypted traffic

Another good way to protect your IP address is to use a VPN. A VPN encrypts your internet traffic and routes through a VPN server. It gives you an anonymous IP address, which helps keep your identity safe. It’s a great tool for remote work, using public Wi-Fi, or traveling internationally.

The best VPNs offer both privacy and speed, so you can stay secure without slowing down your internet.

How a VPN hides your company’s IP address

Step #3: Utilize a proxy server

While proxies don’t encrypt data, they mask IP addresses by assigning new ones for the traffic passing through. This can shield your network from external threats and provide faster speeds, making proxies ideal for accessing streaming services or quick internet browsing.

Step #4: Switch to a dedicated IP for added control

A dedicated IP is an IP address assigned just to your business, typically through a Virtual Private Gateway. This gateway helps control network access, including assigning a unique IP address. It also lets you set user access permissions and segment your network to keep critical resources safe.

With a dedicated IP, your team can access your data securely from anywhere, ensuring that only authorized users can connect to your network. It’s a simple yet effective way to manage access and protect sensitive information.

Step #5: Enable IP allowlisting for secure access

To better control who can access your network, you can use IP allowlisting. This means creating a list of trusted IP addresses that are allowed to connect to your system. It helps limit your network’s exposure to possible attacks. IP allowlisting works best with static (dedicated) IPs, ensuring only authorized users can access your network.

Step #6: Train employees to spot cyber threats

Training helps employees spot suspicious activity, avoid phishing attacks, and make sure they don’t accidentally share sensitive data. It also teaches them how to use security tools like VPNs, create strong passwords, and avoid unsafe networks.

Compliance and legal considerations

Protecting your IP addresses is not just good practice – it’s also a legal requirement. Regulations like the GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act) emphasize the need to protect personal data and privacy. Your IP address can reveal much about an individual or a business, making it a critical piece of information.

Using compliance solutions can help businesses meet these requirements more effectively. These solutions ensure IP address protection, align with legal standards and simplify the process of protecting personal data.

This way, businesses can avoid legal issues and potential penalties. Compliance also helps build customer trust by showing a commitment to security and data protection.

Why choose Nordlayer for business IP protection

Your business’s IP address is a key part of your online identity, but it’s also a target for cybercriminals. What can someone do with your IP address? They can track your online activity, break into your network, or launch malicious attacks. Knowing how easy it is to find your business’s IP address, it’s important to take steps to protect it.

Here’s how NordLayer can help safeguard your business operations:

  • DDoS Protection: NordLayer’s Cloud Firewall offers strong protection against these attacks, keeping your business up and running.
  • Business VPN: NordLayer offers a Business VPN that encrypts your internet traffic, hides your IP address, and ensures secure communication. Whether you work remotely, use public Wi-Fi, or travel internationally, the VPN server protects your business from unwanted surveillance.
  • IP allowlisting: With NordLayer, allowlisting your Dedicated IP gives you full control over who accesses sensitive resources. You can segment network permissions, ensuring only authorized employees can access specific servers and network resources.

Take action to strengthen your IP protection and ensure your business is fully protected. Contact our sales team to learn how NordLayer can strengthen your business’s IP security and safeguard your operations.

Joanna Krysińska

Senior Copywriter

A writer, tech enthusiast, dog walker, and amateur pastry chef, Joanna grew up in a family of engineers and mathematicians, so a techy mind is in her genes. She loves making complex tech topics less complex and digestible. She also has a keen interest in the mechanics of cybercrime.

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About Nord Security
The web has become a chaotic space where safety and trust have been compromised by cybercrime and data protection issues. Therefore, our team has a global mission to shape a more trusted and peaceful online future for people everywhere.

About NordLayer
NordLayer is an adaptive network access security solution for modern businesses – from the world’s most trusted cybersecurity brand, Nord Security.

The web has become a chaotic space where safety and trust have been compromised by cybercrime and data protection issues. Therefore, our team has a global mission to shape a more trusted and peaceful online future for people everywhere.

About Version 2 Limited
Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

Scale Computing Soars Onto CRN’s 2025 Cloud 100 List

Scale Computing has been named to CRN’s Cloud 100 list for 2025 in the Cloud Infrastructure category! The annual list recognizes the top cloud computing powerhouses in the IT channel, and we’re proud to be among those delivering the most innovative and partner-centric cloud infrastructure solutions to partners and customers globally.

Simplifying Hybrid Cloud with Scale Computing Platform

As businesses increasingly embrace the advantages of both public and private clouds, hybrid cloud solutions have become critical for IT departments everywhere. Scale Computing Platform (SC//Platform) brings the simplicity of hyperconverged infrastructure to the cloud, delivering a hybrid cloud solution built for organizations of every size.

A compelling alternative to the complexities of traditional cloud architectures, SC//Platform boasts a self-healing platform that’s built for simplicity, high availability, and scalability. This means you can deploy applications autonomously in your data center or at the network’s edge, wherever your data resides. This versatile approach empowers your IT department to design the ideal hybrid cloud solution for your unique needs.

Benefits of the Scale Computing Platform

Here are just a few of the benefits you’ll reap with a hybrid cloud deployment powered by Scale Computing:

  • Flexibility: Scale Computing empowers your IT team with unparalleled flexibility. You can seamlessly scale your computing resources up or down to perfectly match your workload demands. This ensures you can adapt to changing business needs, conquer peak usage periods, and optimize resource allocation.
  • Seamless Management: SC//Platform allows you to connect and manage all your virtual machines through a single, intuitive user interface, regardless of their location — on-premises or in the cloud. This streamlined approach simplifies operations and minimizes the learning curve, even during critical events like disaster recovery.
  • Robust Data Security: Our hybrid cloud solution allows you to control your company’s critical data and applications by maintaining them on-premises, while offloading anonymized or less private data to a private or public cloud for big data and analytics use. This approach ensures compliance with relevant industry regulations and provides a crucial layer of security for sensitive information.
  • Cost-Effectiveness: Our hybrid cloud architecture helps optimize IT spending by dynamically allocating resources. You’ll minimize upfront capital expenditures and maximize the return on your IT investments.
  • Simplified Networking Across Multiple Sites: Scale Computing’s innovative technology, including HyperCore Edge Fabric and Open vSwitch/VxLAN, simplifies networking across multiple locations. This means you can effortlessly manage multiple virtual LANs and configure them on a per-VM basis within SC//HyperCore. This capability extends to managing multiple on-premises instances, streamlining disaster recovery failover/failback processes, and enabling live migration between on-premises and cloud-based instances for a seamless hybrid cloud experience.

 

About Scale Computing
Scale Computing is a leader in edge computing, virtualization, and hyperconverged solutions. Scale Computing HC3 software eliminates the need for traditional virtualization software, disaster recovery software, servers, and shared storage, replacing these with a fully integrated, highly available system for running applications. Using patented HyperCore™ technology, the HC3 self-healing platform automatically identifies, mitigates, and corrects infrastructure problems in real-time, enabling applications to achieve maximum uptime. When ease-of-use, high availability, and TCO matter, Scale Computing HC3 is the ideal infrastructure platform. Read what our customers have to say on Gartner Peer Insights, Spiceworks, TechValidate and TrustRadius.

About Version 2 Limited
Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

What is a data breach, and how does it happen?

What is a data breach, and how does it happen?

Data breaches are one of the most common cybersecurity threats that businesses and individuals have to face. What may seem like a small data leak can result in huge financial loss and reputational damage. So, what is a data breach, how does it happen, and how can you safeguard your data?

What is a data breach?

A data breach occurs when unauthorized people gain access to personal, classified, or otherwise protected information. Data breaches can be unintentional (for example, resulting from a company file sent to the wrong person) or malicious (caused by phishing emails, hacker attacks, or malware infections).

More often than not, businesses and individuals suffer malicious data breaches. Since data can hold significant value, it’s natural that cybercriminals try to steal it and make a profit from it either by selling the obtained information on the dark web or ransoming it for huge sums.

How do data breaches happen?

Typical data breaches involve specific steps, such as reconnaissance, gaining access, extracting data, and covering the hackers’ tracks. In certain cases, cybercriminals can also use privilege escalation or lateral movement.

Here’s how malicious actors breach systems to steal data:

  • Step 1 – Reconnaissance. Before launching an attack (be it phishing, malware, session hijacking, or brute force attacks), cybercriminals will scout the system for potential attack vectors and system vulnerabilities. Once they gather the information they need, the cyberattack is ready to go.
  • Step 2 – Gaining access. This one is also known as the initial compromise. During this process, hackers use their preferred attack method to gain unauthorized access to the system and its data.
  • Step 3 – Privilege escalation. Once they breach the system, malicious hackers may need higher clearance, such as admin rights, to bypass restrictions and access more sensitive data. To do so, hackers exploit system vulnerabilities until they get admin-level access, which strengthens their control over the compromised system.
  • Step 4 – Lateral movement. When hackers gain enough power over the system’s controls, they can use them to move laterally across the network. That means malicious actors have open access to all or most system files, most significantly those that include sensitive information.
  • Step 5 – Data exfiltration. Once the bad guys are completely set in the breached system, they begin exfiltrating the “good stuff.” Using extraction tools, hackers steal personal information, business secrets, and classified documents in seconds, sometimes before system owners can even notice anything.
  • Step 6 – Covering tracks. After completing their task, the hackers will try to cover up any trace of their presence. This usually means deleting activity logs or disabling security systems so that the system owners and security do not pick up any leftovers, unusual files, or suspicious activities.

The steps above describe a perfect data breach, during which the system operators are unaware of being attacked. Depending on the type of attack, the system security, or the vigilance of its owners, data breaches can be spotted early or even during the attack, forcing malicious actors to adjust their methods.

What are the main causes of data breaches?

Poor cybersecurity practices, such as weak passwords or unpatched vulnerabilities, are usually the main causes of data breaches. Cybersecurity experts also note that human error is among the most common causes of this issue and add misconfigured systems and physical credential theft (or loss) to the list of contributing factors.

Hackers target both small and large businesses for two different reasons. Small businesses often lack robust cybersecurity practices, making them easy targets. Meanwhile, large companies often present a challenge that can motivate hackers to breach the system and humiliate the company publicly, resulting in financial and reputational damage. Some hackers may also breach systems to commit espionage or even shine a light on a specific political or social cause (a process also known as hacktivism).

Based on these simple principles, malicious actors can exploit different vulnerabilities. For example, small businesses often suffer phishing and other social engineering attacks. Big businesses aren’t immune to phishing either, due to the larger number of employees and extensive communication channels. However, they’re also more likely to experience brute force attacks, which can breach the company’s cybersecurity and result in data theft.

Businesses may also face different types of data breaches caused by insider threats (employees who willingly help hackers get inside), malware, unpatched system vulnerabilities, or even lost or stolen company devices. This is why companies invest in cybersecurity measures, such as password managers, two-factor authorization (2FA), and skilled cybersecurity personnel. However, it’s equally important to train all employees to help them understand their role in maintaining cybersecurity in the workplace.

What methods are used in data breaches?

As mentioned, hackers can use numerous methods to breach the systems and steal data. From malware to third-party software, here are the main ways in which malicious actors may launch a data breach attack:

Malware

Hackers use malware to slip into the system undetected. Files with spyware or ransomware, trojans, and infostealers are among the most common types of malware that can open doors for hackers to access your system, potentially gain admin-level privileges, and steal sensitive data.

Malware can infect your system through various methods, including phishing links, infected USBs, and unsafe websites. Therefore, employee vigilance is essential in preventing this type of cyberthreat.

Social engineering

Social engineering refers to attacks that involve direct contact between the hacker and the system user. Malicious actors create believable scenarios and try to lure users into providing sensitive information, using methods such as phishing.

Whaling is another great example of a social engineering attack. This method is used to target big companies and works similarly to phishing. During whaling attacks, hackers send emails to high-level employees (executives, CEOs, and CFOs), pretending to be representatives of reputable companies, such as law firms. In those emails, the hackers may urge their victims to wire money, share the company’s secrets, click on suspicious links, or download unknown files.

Phishing

Phishing is a social engineering cyberattack that exploits users by baiting them to click on links or files that contain viruses, spyware, and other malware. Hackers usually attempt phishing through email and contact employees with messages that create a sense of fear or urgency and encourage quick response. For example, phishers may target employees by pretending to be representatives of legitimate organizations, and prompting the users to take immediate action based on the content of the email.

If an employee takes the bait, they may click on the link which typically hosts some kind of malware, potentially opening the doors for cybercriminals to breach the system. The landing pages of some phishing links may also replicate known user interfaces, such as system login windows, and scan everything the user types (including username and password), further exposing the system to the threat.

Human error

No matter how hard people try, sometimes accidents happen. A lost keycard, a typo in the email address field, or a lost work laptop can cause a data breach if they fall into the hands of malicious actors. If something like that happens, it’s important to report the issue without ignoring it and be vigilant of potential breaches or attacks. Offering support to the person who made a mistake is also a good practice for maintaining loyalty among employees.

Insider threats

In some cases, hackers can initiate a data breach with assistance from someone inside the organization. According to the experts, this issue has become so prevalent that it now ranks among the top cybersecurity risks for large businesses. To prevent insider threats, you can limit access to sensitive information or invest in a better workplace environment (people are less likely to turn against the company when they actually like working there, right?).

Supply chain attacks

Supply chain attacks occur when hackers target part of a company’s supply chain software. In simple terms, it’s a type of cyberattack that targets service providers, vendors, and third-party apps on which the company relies. Some businesses may need to share access rights or sensitive information when using third-party services. Therefore, a successful supply chain attack can expose your company’s system even if it wasn’t attacked directly.

Unpatched vulnerabilities

As soon as companies develop new strategies to safeguard their data, malicious actors come up with new ways to overcome them. System security gets obsolete fast, exposing businesses to cyberattacks. Overdue updates and unpatched vulnerabilities invite hackers to breach your networks and steal sensitive data. To avoid such problems, companies should install system updates as soon as they launch while constantly monitoring and patching additional system vulnerabilities.

Weak or stolen credentials

Weak passwords are one of the most common causes of data breaches. Far too often, people believe their passwords are strong enough, while a hacker with a capable toolset can crack them in mere seconds. Safeguarding against this vulnerability requires businesses to introduce 2FA and educate employees on password security. Using additional tools such as password managers can also be a huge benefit.

Cloud misconfigurations

While cloud storage is a convenient choice for data storage, poorly configured cloud servers can turn that comfort into a headache in just a few seconds. Insufficient user restrictions, lack of encryption, or disabled logging and monitoring can allow malicious actors to jump into your cloud server and peek at all the sensitive data you might be hiding there.

Third-party access

Third-party access vulnerabilities can allow cybercriminals to steal your business data even without directly attacking your company. Hackers may target a third-party service provider to hijack communications, gain access to specific files shared between your company and the third-party service provider, or learn about potential vulnerabilities.

Safeguarding against this risk is difficult but not impossible. Before entrusting your company’s data to a third-party service provider, make sure that the provider has an impeccable cybersecurity record. Even then, set up separate accounts for communication and use proper information segmentation. In addition, look for ways to safeguard your system in case of a third-party attack.

What are the targets of data breaches?

Data breaches, as the name suggests, mainly target data. Depending on the service the business provides, we can divide that data into more specific types.

  • Personal data. Includes names, surnames, addresses, phone numbers, Social Security numbers, and birth dates. Malicious actors may use stolen personal data to commit identity theft or sell it on the dark web.
  • Financial data. This data type includes credit card numbers, bank account details, and payment information. With this data, hackers can try to carry out fraudulent transactions or drain bank accounts.
  • Login credentials. If the system collects usernames, passwords, or answers to security questions, the data breach will expose them to malicious actors. Needless to say, login credential leaks can pose a huge risk of identity theft and loss of account access (for example, when hackers use the victim’s login details to change the account’s password).
  • Intellectual property. Patents, trade secrets, and research data can harm businesses and cause significant financial damage when in the hands of hackers. Malicious actors may demand ransom for stolen data or try to sell it on the dark web, making a company’s hard work go to waste.
  • Customer and client data. Businesses often collect various types of customer data including, but not limited to, personal and financial information. Suffering a data breach that leaks client data is a huge financial, reputational, and potentially legal blow. Customer data is often the most sought-after target for malicious actors because it causes the most damage, hurting the business and creating thousands of potential new victims.
  • Government data. Some companies may work closely with the government as service contractors. That could mean exchanging sensitive information such as strategic documents, personal data of government employees, or even classified information. Exposing such data to hackers could, at the very least, cause a scandal, let alone destroy careers, or even worse — put someone’s life in danger.

 

What are the consequences of data breaches?

The consequences of data breaches vary depending on the type and amount of stolen data, the size and reputation of the company, and sometimes even the hacker’s “goodwill.” Based on these (and many more) factors, the consequences of a data breach can range from small financial losses to massive reputational damage, compliance regulation breaches, lawsuits, loss of certificates, and even official government hearings.

Typically, after stealing sensitive data, malicious hackers can either use it to further their scams (for example, using stolen client data to launch phishing attacks and steal identities), sell the data on the dark web, or contact the owners of the breached system to demand ransom for the stolen data. If the company has a strong presence in the market or is one of its leaders, the hackers may leak the data for free to cause reputational (and, therefore, financial) damage.

Real-life examples of data breaches

Examples of real-life data breaches prove that even well-known companies, such as Equifax and Yahoo, cannot feel safe from potential cyberattacks. Here are a few high-profile data breach cases:

  • MGM resorts data breach (2023). In early 2023, MGM Resorts suffered a major data breach after a cyberattack that appeared to target its internal systems, causing severe disruptions. A result of a ransomware attack, the breach granted hackers access to sensitive information, including guest data and internal systems. The breach resulted in complete system shutdown along with reputational damage and significant financial loss.
  • Snowflake data breach (2023). Snowflake, a business cloud data platform, suffered a data breach when hackers found a possible entry point through a third-party provider. The supply-chain attack exposed sensitive data stored on Snowflake’s platform, including financial information and business intelligence. This caused a series of security incidents including breaches at other Snowflake-associated companies (such as AT&T and Santander Bank). While the company took swift action and worked with security experts to address vulnerabilities, the snowball of breaches that rolled over Snowflake’s customers resulted in a significant reputational damage.
  • MOVEit Transfer data breach (2023). Progress Software’s MOVEit Transfer, a secure file transfer software, was exploited by a zero-day vulnerability, just last year. The breach affected thousands of organizations worldwide, with hackers gaining access to personal, financial, and healthcare information. The company sustained increased scrutiny and hefty financial consequences.

How can businesses prevent data breaches?

For businesses, data breach prevention requires substantial financial and human resources. Here are some tips on how to safeguard your business against data breaches:

  • Implement two-factor authentication. Safeguarding systems with 2FA provides an additional layer of security and helps detect suspicious or unauthorized access requests more quickly.
  • Encrypt sensitive data. Investing resources in strong encryption can improve your business cybersecurity and increase the safety of sensitive information. While you can use file encryption tools, a VPN such as NordVPN can offer additional benefits (for example, Threat Protection Pro™ features).
  • Build a strong cybersecurity team. Large companies should invest in seasoned cybersecurity specialists. They will help you better prepare for potential cyber threats and strengthen the overall safety of the company’s sensitive data (for example, through educating your employees).
  • Update and patch software regularly. System updates often include new security patches, so it’s crucial to install them as soon as possible to keep your systems up to date.
  • Carry out security audits and employee training. As the old saying goes, “practice makes perfect.” Run regular security audits and employee training sessions to strengthen the company’s cybersecurity and ability to respond to a potential data breach.
  • Create backups and data recovery plans. Data diversification can be a smart strategy. Make sure to create backups for sensitive information and draw up strategies to recover lost data. While this may not protect against a potential data breach, it’ll help mitigate the damage (for example, by avoiding paying a ransom) after a potential cyberattack.
  • Use NordStellar. From the minds behind NordVPN, the latest addition to the Nord family, NordStellar helps businesses identify potential exposures and compromised customer or employee credentials before hackers can take action. It’s a useful tool that aids businesses in data breach monitoring, identifying potential risks, and tracking mentions of your company in cybercrime communities.

What to do if your business suffers a data breach

If the business has suffered a data breach, it’s critical to act fast. First, contain the breach by isolating all affected systems and assessing the damage and the compromised data. Then, start patching vulnerabilities, fixing security gaps, and notifying affected customers and stakeholders. Some laws may also require reporting the data breach to law enforcement (for example, under the GDPR, organizations have 72 hours to report a breach to the relevant data protection authority).

Finally, continue to monitor your systems and review the security policies. The backlash and repercussions may continue for some time. However, while going through the process, it’s important to start upgrading and patching your cybersecurity weaknesses to avoid future cyberattacks.

 

FAQ

What is the average cost of a data breach?

While it’s hard to define a specific figure, the average cost of a data breach usually involves millions of dollars. Some experts indicate that the average cost per lost or stolen record containing sensitive information could be approximately $165, while healthcare records may reach $429 per record. According to IBM’s 2023 Cost of a Data Breach report, the average data breach exposes about 25,000 records. Based on these numbers an average data breach can cost from $4 million to $10 million and more.

How to detect a data breach?

To detect a data breach, check your system activity logs and file directories for suspicious activity. Data breaches usually include connections from unknown devices, changes in file locations or sizes, and unusual data transfers. So if you notice any unauthorized or dubious changes in your system, start investigating. Additionally, use automated security tools, such as NordStellar, and regularly conduct security audits to enhance threat detection capabilities.

How should business report a data breach?

Reporting a data breach may look different depending on where the business operates. For example, in the EU, you must report a breach to your local data protection authority (DPA) within 72 hours of its discovery. In the US, however, most states obligate businesses to notify their Attorney General’s office or consumer protection agencies of any breaches. The requirements vary by state, and the timelines may be shorter than those mandated by federal law.

It’s also critical to inform the company’s customers by sending emails or text messages describing the situation and the steps that will be followed to mitigate the damage.

About NordStellar
NordStellar is a threat exposure management platform that enables enterprises to detect and respond to network threats before they escalate. As a platform and API provider, NordStellar can provide insight into threat actors’ activities and their handling of compromised data. Designed by Nord Security, the company renowned for its globally acclaimed digital privacy tool NordVPN.

About Version 2 Limited
Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.