What Happens in a Data Breach?

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Data breaches are all over the news. Major companies and small businesses alike fall victim to data breach all of the time. It’s no longer a requirement for companies to announce that there has been a breach. However, there are still fines and fees when it does happen. This is not counting the problems that losing data can cause for a company. While wholesale cyber insurance protects businesses from cyber risk, it’s important to understand what a data breach is.

What Is a Data Breach?

Data breach is when a criminal manages to infiltrate a data source. Once in, the hacker will extract sensitive information. Sometimes this happens by physically accessing a computer or by bypassing network security.

A data breach involves these four steps:

  • Research of the company’s weaknesses
  • Contact made through network or social attack
  • Criminal uses infrastructure to access network
  • Attack on the network, theft of confidential data


As you can probably tell, a data breach is extremely serious. Some hackers steal credit card information, personal details and medical files.

To protect yourself against data breach, you need to have cyber insurance options that come from providers of wholesale cyber insurance. There are varieties of different coverage options that may help in a case where your cyber security fails.