Information Leakage Risks Companies Should Be Aware Of: Causes and Countermeasures Explained
As IT adoption progresses, information leakage incidents are becoming more common. It is now crucial for companies to recognize these risks and handle information correctly and securely.
Even if you believe your company is secure, information leakage can occur at any time due to human error or cyberattacks.
This article explains the risks, causes, and countermeasures related to information leakage. We hope that through this article, you will gain a deeper understanding of information leakage risks.
Table of Contents
- Risks Caused by Information Leakage
- Imposition of Damages and Criminal Penalties
- Website Information Tampering
- Unauthorized Use of Information
- Loss of Social Credibility
- Decline in Employee Motivation
- Causes of Information Leakage
- Loss or Misplacement
- Conversations and SNS Posts
- Email and System Misoperation
- Unauthorized Access
- Cyberattacks and Malware Infection
- Three Measures to Reduce Information Leakage Risks
- Implementing Security Software
- Thorough Information Management and Rule Creation
- Encrypting Transmission Data and Implementing Mis-transmission Prevention Systems
- Summary
1. Risks Caused by Information Leakage
The main risks caused by information leakage are the following five:
- Imposition of damages and criminal penalties
- Website information tampering
- Unauthorized use of information
- Loss of social credibility
- Decline in employee motivation
First, let’s understand what kind of risks exist.
1-1. Imposition of Damages and Criminal Penalties
If customer personal information is leaked, you may be subject to damages and criminal penalties.
With the revision of the Personal Information Protection Act enforced in April 2022, protection of individual rights and responsibilities of businesses were added, resulting in penalties of imprisonment for up to one year or a fine of up to 1 million yen.
According to the Personal Information Protection Act, information leakage is considered an act that infringes on the rights and interests of others. Some companies have even paid apology money separately from damages in the past.
1-2. Website Information Tampering
There is also a risk of unauthorized access to a website, resulting in unintended advertisements or information tampering.
If recruitment sites or e-commerce sites are subject to unauthorized access, the risk of personal information leakage increases, requiring caution.
Additionally, there are cases where users are redirected to another website to obtain personal information, so you must always be aware of website vulnerabilities.
1-3. Unauthorized Use of Information
Information leakage also poses the risk of third parties stealing and misusing personal IDs and passwords.
In particular, if credit card information is stolen, it can lead to monetary issues for customers, requiring caution.
Furthermore, if an email address is hijacked, it can be used to spread spam emails while impersonating the company. Recipients may be more vulnerable to these emails if they believe they are coming from a legitimate company, increasing the risk of widespread damage.
1-4. Loss of Social Credibility
Information leakage can also lead to a loss of social credibility from customers and business partners.
When information leakage becomes public, customers and business partners may feel insecure about the protection of their personal information and confidential data, causing them to distrust the company.
This can make it difficult to continue transactions, and new interactions may also be met with suspicion regarding social credibility.
1-5. Decline in Employee Motivation
A decline in employee motivation can also be considered an information leakage risk due to the loss of the company’s credibility.
The trust and achievements that employees have built up to that point are damaged, potentially having a negative impact on the overall performance of the organization.
Additionally, if information leakage occurs due to an employee’s actions, it can lead to strained relationships and legal issues, making it even more difficult to maintain motivation.
2. Causes of Information Leakage
The main causes of information leakage include the following items:
- Loss or misplacement
- Conversations and SNS posts
- Email and system misoperation
- Unauthorized access
- Cyberattacks and malware infection
Let’s take a closer look at each cause.
2-1. Loss or Misplacement
Information leakage often occurs due to the loss or misplacement of USB memory sticks or documents.
In one actual case, a person left their bag containing a laptop behind after a dinner party.
If the staff at the restaurant notice and immediately return it, there is no problem. However, if it is lost or misplaced elsewhere, it can be difficult to find.
This type of information leakage due to human error is surprisingly common, and sufficient care must be taken when handling information.
2-2. Conversations and SNS Posts
Information leakage can also occur through everyday conversations or posts on personal social media accounts.
Information can spread rapidly on social media, leading to the risk of online firestorms. It is best to avoid posting information or confidential details that are only known to company employees.
Employees with different employment statuses, such as part-time workers or dispatched employees, may not be as aware of information leakage risks and may be more likely to make careless remarks.
Additionally, there have been cases where internal information was disclosed with the intention of leaving the company, leading to information leakage.
2-3. Email and System Misoperation
Information leakage can also occur due to email mis-sends or system misoperations.
For example, if a contract file with a business partner is mistakenly sent to another company, the recipient could prepare to offer more favorable terms if they are in the same industry.
Also, if the wrong recipient is selected when sharing a customer information file, it can lead to personal information leakage and a major problem.
2-4. Unauthorized Access
The infection of devices such as computers with cyberattacks or malware by malicious third parties, leading to the extraction of data, is another cause.
Recently, malware infections have become more sophisticated, and some are difficult to identify as viruses or memes at first glance.
Also, there are many types of malware, such as keyloggers, that do not harm the system itself but extract the device’s operation history, enabling unauthorized access.
Companies that handle confidential information and customer information should pay close attention to cyberattacks and malware infections.
2-5. Unauthorized Access
Information leakage due to unauthorized access is a common external factor.
If IDs and passwords are obtained by exploiting security vulnerabilities, there is a risk of personal and confidential information being stolen.
Additionally, unauthorized access can lead to website tampering, negatively impacting visitors to the website, so caution must be exercised.
Companies that handle confidential information and customer information should pay close attention to cyberattacks and malware infections.
3. Three Measures to Reduce Information Leakage Risks
To reduce the risk of information leakage, it is important to use the following three measures in combination:
- Implementing security software
- Thorough information management and rule creation
- Encrypting transmission data and implementing mis-transmission prevention systems
In particular, the implementation of security software is a measure that should be thoroughly implemented to address information leakage risks, so start practicing it immediately.
3-1. Implementing Security Software
Implementing security software is the most effective way to protect against unauthorized access, cyberattacks, and malware infections.
However, many companies have already implemented security software. The issue is whether the security software and its version are up to date.
Viruses and malware, including memes, are constantly evolving, and some may not be detected by traditional security software.
Therefore, install the latest security software possible to efficiently reduce information leakage risks.
3-2. Thorough Information Management and Rule Creation
Thorough information management and rule creation are important to prevent the loss or misplacement of USB memory sticks and documents containing confidential information, as well as email mis-sends.
For example, avoid dinner parties when carrying information and shred unnecessary information documents.
After creating rules, it is more effective to provide regular training so that employees are always aware of them.
Personal information leakage requires thorough management to ensure that accidents never happen. Therefore, raise employee awareness by adhering to strict and clear rules.
3-3. Encrypting Transmission Data and Implementing Mis-transmission Prevention Systems
Encrypting transmission data and implementing mis-transmission prevention systems can reduce human error. If data is encrypted, it will be difficult to decipher even if it is lost or stolen.
Mis-transmission prevention systems vary depending on the type, but some require third-party approval or provide a grace period before sending.
The best system will vary depending on the company. Implement the appropriate mis-transmission prevention system while carefully considering which mechanism is most efficient.
Summary
This article explained the risks of information leakage, along with its causes and countermeasures. Information leakage can occur from a variety of sources, including human error, external unauthorized access, and malware infections.
The measures introduced in this article are not meant to be implemented in isolation; all of them should be implemented, as it will be too late after an incident occurs.
Please use the content explained in this article as a basis for hedging against the risk of information leakage.
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