Technological advancements have brought us needs that were not previously prioritized. The Data Protection Law ( General Data Protection Law ) introduced rules and protocols to be followed to meet information security needs. The increase in cyber incidents and attacks has demonstrated that the internet is an insecure environment and can represent a significant risk for companies.
According to data updated in 2022, 90% of Brazilian households already have internet access in the country , delivering 155.7 million Brazilians connected to this technology. Since its enactment, the data protection law has helped companies establish protocols for collecting and maintaining data in a more efficient and secure way.
This law was created in 2018 and came into effect in 2020, and its objective is to establish rules for the processing of personal data in the digital environment. Its rules focus on guaranteeing the right to freedom and privacy of individuals . Monitoring compliance with this law is carried out by the National Data Protection Authority, a governmental entity responsible for overseeing public services.
Gain a better understanding of the role of the LGPD (Brazilian General Data Protection Law) in protecting personal data:
How does data breaches impact businesses?
Data leaks are one of the most serious problems faced by companies that have suffered cyberattacks. Beyond the exposure of information, the company will need to deal with the damage to its image and the penalties imposed by data protection law.
This specific problem was one of the main driving forces behind the creation of a specific law for the protection of information. This is because data breaches can generate the following problems:
- The leakage of confidential data can harm the progress of processes and strategies within the company;
- If the incident makes public the financial data of individuals, such as bank information, statements, credit card information, pay stubs, among others, this information can be used fraudulently to perpetrate scams ;
- The leakage of personal data can facilitate the misuse of information, such as in the creation of mass mailing lists, the development of consumer profiles, the sale of products, etc.
Data breaches can cause immense damage to a business's reputation. Regardless of the company's industry, this type of incident can alienate customers and investors , hindering the company's growth and development.
According to research conducted by IBM, Brazil ranks fourth in the world for data breach incidents , with 26,523 reported breaches. This type of incident can now trigger administrative proceedings and data protection penalties, which may include:
- Warning;
- Disclosure of the infraction committed;
- Blocking and deleting the information involved in this infraction;
- Many of these are substantial, potentially reaching R$ 50 million.
In addition to all these problems, the company will suffer a huge impact on its image in the market and among its consumers . Faced with any financial penalty, companies will also need to adopt additional solutions in their data protection strategy. This means that, besides reviewing their compliance with the LGPD (Brazilian General Data Protection Law), the business will also need to establish an awareness campaign and update its digital security policies.
Here are the major data breaches that occurred in 2022:
- Twitter: had over 63 GB of files leaked, containing data from 221 million people.
- Nvidia: the chip developer suffered from the leak of login credentials for 71,000 employees.
- Samsung: In two attacks suffered in 2022, the multinational had 200GB of information leaked.
- Revolut: In a cyberattack, the Fintech company had data from more than 50,000 customers leaked.
Updates to the Data Protection Law
On January 27, 2022, Resolution No. 2 was published by the National Data Protection Authority. This update relaxed one of the rules aimed at small businesses , which applies to the following businesses:
- Micro-enterprises, small businesses;
- Startups;
- Private legal entities.
Although this resolution has brought a bit more flexibility in adapting these companies to the LGPD (Brazilian General Data Protection Law), it's important to remember that small businesses are not exempt from complying with these rules.
Other changes to be mentioned are:
- Starting in 2023, the monitoring and punishment of illegal activities will begin, granting more power to the National Data Protection Agency in order to implement monitoring and punishment more efficiently;
- The update also divided ANPD agents into two categories: controllers, who have decision-making power over information processing activities and can choose a third company for this purpose, called an operator. Operators do not have the same decision-making power as controllers and have more limited decision-making power.
In the second half of 2022 alone, Brazil experienced an almost 50% increase in cyberattacks . For this reason, compliance with the LGPD (Brazilian General Data Protection Law) has become a priority for companies, requiring the implementation of resources and solutions that help maintain cybersecurity and the confidentiality of stored data .
Why comply with the LGPD?
As we saw earlier, enforcement of the General Data Protection Law will become even more intense this year . Therefore, we've outlined some reasons to help you understand the importance of complying with this legislation and ensuring your company's data remains even more secure:
The sanctions are already being applied
Many companies are still unaware that regulatory agencies are already implementing substantial fines for companies that fail in their security processes. Data leaks involving customers, suppliers, and partners are a serious failure and can have an immense financial impact on your company.
Impact on the business image
Due to increased competitiveness, problems of this type can depreciate the value of your brand in the market. Companies that became known for information leaks lost credibility and profitability as a result of this problem. And in this sense, we are not only talking about financial value. The image crisis caused by an information leak has an immense impact on a business's image.
It's not just your company that needs to adapt
Suppliers and partners also need to comply with the regulations set forth in the data protection law. It's also important to know that you can be held liable for the actions of supplier companies , so it's necessary to assess compliance with the LGPD (Brazilian General Data Protection Law) before entering into a contract.
Your company may be charged
Many businesses are already requiring compliance with the General Data Protection Law (LGPD) when soliciting proposals. If your company is not compliant with this new legislation, it may lose valuable partnerships and contracts that are crucial to its continued operation.
Implementing a culture of internet security
Beyond relying on technological tools to ensure the security of information stored by your company, the LGPD (Brazilian General Data Protection Law) also expects a process of awareness among employees . Your team needs to understand the necessity of maintaining good cybersecurity practices to avoid creating vulnerabilities within your business.
It reduces the risk of scams and cyber threats
There are several internet scams that can, in addition to causing financial problems, interrupt your business operations . And we know that a business at a standstill means lost revenue. Complying with the LGPD (Brazilian General Data Protection Law) will help you maintain the security of your devices and networks and avoid these types of scams.
How to ensure your company's internet security
It is very important that, to maintain the security of information within your company, the right tools are used. Although there are numerous solutions on the market focused on cybersecurity, it is necessary to know exactly what your company needs and which is the best resource to implement.
Most cyber threats exploit network vulnerabilities and the misuse of resources. This means that it is also the responsibility of employees to ensure that networks, devices, and documents remain secure.
To achieve this, your team needs to understand the importance of maintaining good practices when using the company's digital resources. In addition to creating strong passwords and adhering to the Internet Usage Policy , users also need to understand the importance of not accessing the system improperly during work hours.
Many cyber scams originate from misleading advertising, fake emails ( phishing scams ), and indiscriminate downloads. For this reason, it is essential that your company has access control features to help prevent these types of problems within the business.
These tools can help managers monitor online activity and ensure their employees stay out of trouble . For this, you can rely on Lumiun tools such as Lumiun Box and Lumiun DNS .
Contact us and discover how to keep your company safer and more protected . The LGPD (Brazilian General Data Protection Law) was created to bring more security to data, and it is your company's responsibility to use the best tool on the market to contribute to this process.
Until later!
