Data Breach Response Checklist for E-commerce Sellers

A data breach can cost a company millions of dollars in lost revenue, legal fees, and damaged reputations. This is why businesses must have a data breach protocol in place to quickly identify and respond to a breach when it occurs.

In this article, we’ll cover the critical steps in a data breach response checklist for e-commerce sellers to minimize damage.

» How do you prevent a data breach? Discover ways to protect your online store from data breaches

Why Protect Against Data Breaches?

Financial Loss

Talking about monetary cost alone, IBM reports that data breaches can cost businesses upwards of $4.35 million. However, dealing with a data breach is rarely just a financial issue.

Damaged Brand

A data breach can also cost businesses in terms of their reputation and customer trust. In the digital age, customers are becoming increasingly aware of the risks of data breaches. They are less likely to do business with a company that has previously been hacked or compromised.

Increased Threat

Statista also reports that the instances of data breaches continue to rise exponentially, with attacks multiplying to 15 million worldwide in 2022. That’s a 167% increase from the previous year and a staggering number of data records exposed.

Unfortunately, many businesses fail to protect against such breaches until it’s too late. By then, a cyber attack is well underway, with hackers stealing sensitive company information or holding systems hostage with ransomware.

Steps To Respond to a Data Breach

So, what exactly is a data breach response checklist for e-commerce sellers? Here are the steps you should take as soon as you identify a data breach:

1. Assess the Scope of the Breach

The first step in handling a data breach is to determine exactly what was compromised, how it occurred, and who was impacted by the event. This involves assessing the extent of any damage, such as any financial loss, what records were stolen, what files have been hacked, etc.

You should also establish if it’s a genuine breach. Often, security software can generate false alarms that don’t indicate a real threat. You must check whether you’re facing an actual breach or simply need to update your security software.

2. Secure Your Operations and Fix Vulnerabilities

Once you’ve determined that a breach has occurred and assessed the damage, the next step is to immediately secure all operations to prevent further data loss or the breach from spreading. This may involve shutting down systems, reviewing security procedures and passwords, or limiting access to certain data.

The United States Federal Trade Commission (FTC) suggests taking the following steps to secure business operations in the event of a data breach:

• Secure physical areas that may have been involved in the breach Secure computer systems, servers, and other electronics that may be related to the breach by locking them and changing access codes.
• Assemble a response team to carry out your protocol This could include legal experts, data forensics experts, IT professionals, human resources, communications, and upper management.
• Stop data loss Immediately put all affected equipment offline and place clean machines online instead. Update passwords and credentials as quickly as possible.
• Remove information the hacker may have published online If any personal data is posted on the company’s website or other sites, take it down immediately.

Bulleted List

3. Notify Affected Customers or Employees

Once you’ve determined the scope of the incident, you should reach out to all impacted parties as soon as possible to inform them about the data breach. This includes notifying law enforcement, who can help you investigate the breach further.

The General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) are strict laws that require businesses to notify customers of any data breaches within a specific timeframe. The GDPR requires companies to alert affected parties within 72 hours, while the CCPA requires notification as soon as the breach has been discovered.

» How do you stay GDPR compliant? Learn what is a data breach under GDPR

Stay Proactive With Breach Response

Managing a data breach can be challenging and stressful, but you must remain proactive in your approach to responding to them. The steps above are a good starting point for e-commerce sellers who want to protect their customers and businesses from the financial and reputational consequences of a data breach.

Ultimately, preventing future data breaches requires having a clear and comprehensive response plan and investing in robust IT security systems to identify potential threats before they occur.

» Worried about detecting data breaches? Explore PieEye’s data breach protocol