Page 47 - The Insurance Times July 2025

Case Study

Data Breaches - Theft of Sensitive Customer Data

Executive Summary The study focuses on the root causes of the breach, the
immediate and long-term response strategies, and the over-
This case study examines a data breach incident faced by a
all impact on the organization's operations, reputation, and
global e-commerce company, where sensitive customer
financial performance.
data, including financial information, was compromised due
to a cybersecurity vulnerability. The breach resulted in the
exposure of personal data of over 10 million customers, lead- Definition of Key Terms
ing to reputational damage, financial penalties, and loss of 1. Data Breach: Unauthorized access, theft, or exposure
customer trust. of sensitive, confidential, or protected data.
2. Cybersecurity Vulnerability: A weakness in a system,
The company implemented a multi-faceted solution to miti- network, or application that can be exploited to gain
gate the impact of the breach, strengthen its cybersecurity unauthorized access.
defenses, and restore customer confidence. These measures
3. Personally Identifiable Information (PII): Information
included immediate containment of the breach, collaboration
that can identify an individual, such as name, address,
with cybersecurity experts, enhancement of security proto- social security number, or credit card details.
cols, and transparent communication with stakeholders.
4. Encryption: The process of converting data into a se-

Through these efforts, the company regained trust, im- cure format that can only be accessed with a decryption
proved its cybersecurity posture, and minimized future risks. key.
This case study provides insights into the root causes of the 5. Incident Response Plan: A documented process to de-
breach, the effectiveness of the implemented solutions, and tect, respond to, and recover from cybersecurity inci-
key lessons learned, offering a roadmap for organizations dents.
to manage and prevent data breaches effectively.
The Problem
Introduction Challenges Faced by the Company:
Data breaches pose a significant threat to businesses, par- 1. Unauthorized Access: A sophisticated phishing attack
ticularly in industries that handle large volumes of sensitive on an employee led to unauthorized access to the
customer data, such as e-commerce, finance, and company's customer database.
healthcare. The increasing sophistication of cyberattacks and
2. Data Compromised: Personal and financial information
the interconnected nature of digital systems make it im-
of 10 million customers, including credit card details,
perative for organizations to prioritize cybersecurity.
was exposed.
This case study explores how a leading e-commerce com- 3. Reputational Damage: News of the breach resulted in
pany addressed a large-scale data breach caused by unau- negative media coverage, causing a decline in customer
thorized access to its customer database. The task for the trust and loyalty.
company was to contain the breach, protect affected cus- 4. Regulatory Penalties: The company faced investiga-
tomers, enhance its cybersecurity infrastructure, and rebuild tions and fines under data protection laws, including
trust with stakeholders. GDPR and CCPA.

42 July 2025 The Insurance Times