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System Hacking Incidents: 5 Reasons Why They Happen

Written by DTUC Team | Jun 11, 2024 8:00:00 PM

Despite rapid advancements in cybersecurity strategies and tools, system hacking — the unauthorized access and manipulation of computer systems and their resources by cyber criminals — is still a pervasive threat. As our dependence on digital systems grows, so does the opportunity for malicious actors to exploit any existing security flaws and steal sensitive information to engage in fraudulent activities.

According to recent forecasts, the global datasphere will reach 180 zettabytes by the end of next year. Every zettabyte is equivalent to ​​one billion terabytes. Let that sink in for a minute. That's 21 zeros worth of personal, organizational, and governmental data to keep from system hackers and their nefarious ways.

It's up to you and your security team to take the necessary cyber safety precautions to protect your organization. But before you can defend against cyber attacks and security breaches, you need to know a few things. Let's explore the primary risks and causes of network hacking.

What Are the Risks of System Hacking?

Unfortunately, system hacking is becoming more common by the minute, especially with 30% of businesses storing between 40% and 60% of their data in the cloud. The methods of hacking systems are becoming increasingly sophisticated, such as injection attacks, phishing attacks, social engineering attacks, and even insider threats. 

Once cybercriminals gain access to your systems, they can deploy additional hacking techniques to achieve their goals. The type and extent of damage will depend on the primary purpose of the perpetrators. Regardless of the hacker's motives, their malicious activities could lead to:

  • Data breaches: One of the most immediate risks of system hacking is the exposure of sensitive data. This includes but is not limited to customer information (like email addresses and credit card details), intellectual property, and financial records.
  • Disruption of operations: The malware used in illegal hacking may cause system outages. These disruptions can lead to downtime and decreased productivity, which could ultimately lead to revenue loss for the organization.
  • Financial fraud: Financial gain seems to be the number one cause of malicious hacking. Attackers may steal funds through fraudulent transactions and also manipulate financial data.
  • Reputation damage: A successful hacking incident can be a massive blow to a company's credibility. Customer doubts about the organization's ability to protect their data may result in significant churn and difficulty attracting and retaining new business. This can have long-term consequences for the business's bottom line and future growth prospects.
  • Regulatory non-compliance: Depending on the industry and location, companies may be subject to various data protection regulations. A hacking incident resulting in a data breach can trigger consequences for non-compliance, including hefty fines and penalties.

Top 5 Causes of System Hacking Incidents

While hackers are constantly trying to find new vulnerabilities to exploit, there are five primary security flaws cybercriminals target.  

1. Employees Bypassing Security Controls and Human Error

This is a major cause of breaches and often involves unintentional employee mistakes. According to a recent report, almost 70% of breaches in 2023 involved a non-malicious human element.

For instance, sometimes employees might accidentally disable security measures like firewalls or strong password requirements to make their jobs easier. This automatically creates a vulnerability that hackers can exploit when overlooked for too long. Some workers may also try to access the internet through unsecured public hotspots. Doing so could inadvertently expose sensitive information to potential interception. 

Other times, team members unaware of security best practices can easily fall victim to the most common cyber threats or send sensitive information to the wrong recipient. To prevent this, you must regularly educate them on the latest scams and implement a trusted device strategy that allows them to perform their day-to-day activities while minimizing risks. Some other mitigation strategies include reduced privilege access and multi-factor authentication.

2. Back Doors and Application Vulnerabilities

In a nutshell, ​​backdoors are hidden access points developers intentionally leave in certain types of software for troubleshooting purposes. The problem comes when these application vulnerabilities empower hackers when hacking information systems — and let them wreak all sorts of havoc. 

Other weaknesses in software code, like bugs or outdated software not receiving security patches, are also to blame. For instance, over 90% of WordPress vulnerabilities stem from faulty plugins.

Regularly updating and patching software with the latest security fixes from vendors is one effective way to prevent hackers from taking advantage of backdoors and application weak spots. Developers should also follow secure coding guidelines to minimize problems that could bring dire consequences for you and your customers down the line.

3. Malware and Ransomware Attacks

You and your team can unknowingly download malware from infected websites or emails. This malicious software harms or infiltrates a system and steals information. Ransomware, on the other hand, is a specific type of malware that encrypts a victim's data, making it inaccessible and allowing hackers to demand a ransom payment to decrypt it.

Up to 10% of organizations suffered ransomware attacks in 2023. To avoid this cybersecurity issue, you must be mindful of the type of sites you visit while using the company's networks and systems. On top of that, implementing hacking protection software will help you stay on top of phishing attacks that aim to introduce malware into your devices. Training is also vital so every employee knows about these risks and can take appropriate action to prevent them. 

4. Weak or Stolen Passwords

Passwords that are easy to guess (like birthdays, pet names, or simple dictionary words) are a hacker's goldmine. Automated tools or brute-force attacks can easily crack them. A study by Google Cloud in early 2023 found that weak passwords and other credential issues were behind over half of security breaches.

More complex passwords are not entirely free of risk, though. They can still be stolen through data breaches on other websites, phishing emails, or social engineering scams. Once a hacker has a password, they can use it to access any account protected by it. That's particularly problematic when the user practices bad password hygiene — or, in other words, reuses passwords across multiple platforms.

5. Malicious Insider Attacks

Lastly, cyber attacks do not always come from outside an organization. Sometimes, someone with authorized access to the system perpetrates the security breaches.

Malicious insiders are behind 1 in 4 system hacking incidents. In some cases, that malicious actor may be an employee who is unhappy with their employer and seeking revenge by stealing data or sabotaging the system. In other cases, insiders might help a competitor steal confidential information.

Protect Against Malicious Actors With Absolute Certainty

System hacking is a pressing issue that poses significant challenges to organizations of all sizes across industries. While its causes are varied, the guide above covers the most common ones so that you can be prepared and take proactive steps to modernize security. Understanding and addressing these vulnerabilities will equip you to safeguard your and your clients' data more effectively.