How to handle a data breach in my business

Picture this: You’re enjoying your morning tea, skimming through emails, when suddenly—an alert pops up. Your business has had a data breach. Your stomach drops. What is a data breach? And more importantly, what do you do next?

We've created a plan to help you respond swiftly and with confidence, while staying on top of your data privacy responsibilities.

Here’s an easy step-by-step guide to help UK businesses handle data breaches effectively.

Step 1: Confirm and contain

First things first, take a breath. Not all alerts mean there is a confirmed breach. Your priority should be to confirm if a breach has actually happened. Work with your IT team or data provider to verify the situation.

Data breach incidents can take many forms, including malicious data breaches that exploit software vulnerabilities. Confirming the type of breach helps guide your response.

If the breach is confirmed, contain it. This means stopping the data leak in its tracks — whether that’s disconnecting affected systems or blocking unauthorised access to private data online. The faster you contain it, the less damage can spread.

If you have a proactive plan in place, you will feel far more in control, with protocols and contacts. In crisis you do not want to search for resources and not know what to do. 

Step 2: Assess the risk

Once you’ve stopped the bleeding, it’s time to assess the damage. Determine what kind of data was compromised: Is it customer details, financial records, or internal business documents? Ask yourself: How serious is the risk to individuals and to your business?

To assess the risk, you need to classify the type of data involved. For example, customer personal information, like addresses and payment details, has a higher risk level than internal memos. Consider the following questions:

• What type of data was compromised?

Identify the categories of data involved (e.g., personal, financial, business-related). This helps determine the severity of the breach.

• How sensitive is the data?

Assess the sensitivity level of the data. More sensitive data, such as personal identifiable information (PII), requires a more urgent response.

• How many individuals or entities are affected?

Determine how many people or organizations are impacted by the breach. This helps gauge the scale of the incident and informs your communication strategy.

• What potential harm could result from the breach?

Evaluate the potential consequences, such as identity theft, financial loss, or reputational damage, to ensure an appropriately scaled response.

If personal data is involved in the breach, you'll need to notify the Information Commissioner’s Office (ICO). Many people ask, how long do you have to report a data breach? You have 72 hours to report it to the ICO. Acting fast is key—not only to stay compliant with UK GDPR but also to avoid fines and protect your business's reputation.

So, who notifies the ICO of personal data breaches? It’s usually up to the data controller to take action and make sure the breach is reported in time.

Step 3: Notify affected parties

If personal data has been compromised, you need to inform those affected as soon as possible. Make sure to be clear and empathetic in your communication. Explain what happened, what data was compromised, and how you’re working to protect them.

Transparency is key here - people appreciate honesty. It’s also a chance to show that you’re taking the situation seriously and have their best interests at heart. Include the following in your communication:

• A summary of what happened

Explain the breach in clear, non-technical language.

• The type of data involved

Specify what information was compromised (e.g., names, email addresses, credit card details).

• What you are doing about it

Detail the steps you have taken to contain the breach and mitigate the damage.

• Actions they should take

Advise affected individuals on what they can do to protect themselves, such as changing passwords, monitoring accounts, or contacting financial institutions.

• Contact information

Provide a way for those affected to reach out for more information or assistance.

Step 4: Review and improve

After the initial crisis is handled, it’s time to learn from what happened. Conduct a thorough review of how the breach occurred and what vulnerabilities it exposed. Then, take steps to ensure it doesn’t happen again. This might mean improving your data security policies, conducting staff training, or upgrading your systems. Start by asking the following questions:

• How did the breach occur?

Identify the root cause - was it human error, a software vulnerability, or a sophisticated cyber-attack?

• What systems were involved?

Understand which parts of your network were compromised and how.

• What gaps in security did the breach expose?

Identify weaknesses that need to be addressed.

Once you have answers to these questions, it’s time to make improvements. This may involve updating firewalls, installing new software patches, or enhancing encryption methods. In some cases, it might require redesigning entire systems to prevent similar breaches in the future.

Staff training is another critical aspect of preventing future breaches. Human error is one of the leading causes of data breaches, so providing regular training sessions for your employees can make a big difference. Make sure your team understands the latest cybersecurity threats and best practices, such as recognising phishing emails and using strong passwords.

Another important step is conducting regular audits of your data security systems. Regular audits are a key part of data breach prevention and help you identify weaknesses before they lead to data breach attacks. Bringing in a third-party security consultant to perform an independent audit can provide valuable insights and help identify vulnerabilities that internal teams might miss.

Step 5: Documentation and reporting

Finally, it’s important to document the breach and your response. Proper documentation of data breach incidentshelps refine your data security programs and ensures compliance. This record is not only a legal requirement but a valuable tool to reflect on later. It will help you refine your data security measures and build resilience. Ensure that you have detailed records of:

• How the breach occurred
• The steps you took to contain and mitigate the breach
• Any communications with affected individuals or regulatory bodies
• The findings from your risk assessment
• The measures taken to prevent future breaches

Stay calm, stay prepared

No one likes thinking about a data breach, but having a response plan means you’re ready to act, not react. The best defense is a good offense: take proactive steps to protect your data by regularly updating your security systems, training your staff, and performing audits. Be ready with a response plan so that if the worst happens, you can tackle it head-on.

Make sure you keep your plan up to date, along with your security measures. Data security is an ongoing journey, so stay informed, stay prepared, and always look for ways to improve. That way, if a breach ever occurs, you’ll be ready to handle it.