5 Common Data Security Mistakes Businesses Make

Protecting business data has never been more critical or more complicated. Even minor oversights can lead to costly breaches due to evolving cyber threats and increasingly sophisticated attacks. These gaps can become significant liabilities for small to midsize businesses (SMBs), which often lack dedicated security teams.

There are five common data protection mistakes that companies can’t afford to make. These are especially true for companies in California hubs like Modesto and Mountain View.

Where Businesses Slip: Overlooked Yet Costly Security Gaps

Even the most well-run organizations can overlook basic cybersecurity practices. It’s not always due to neglect. More often, it’s a case of underestimating how quickly threats evolve or assuming current protections are “good enough.”

However, small business security depends on consistency, not assumptions. The following list outlines some of the most common cybersecurity errors that make businesses vulnerable to data loss, breaches, and costly downtime.

1. Hand Over the Keys: Weak Password Protocols

If your employees are still using passwords like “123456” or “CompanyName2020,” your business is vulnerable.

Weak password practices are a goldmine for cybercriminals. Brute-force attacks and credential stuffing are faster and more effective when users rely on predictable patterns. Verizon’s 2024 Data Breach Investigations Report indicates that the use of stolen or weak credentials accounted for over 80% of hacking-related breaches.

A compromised password can act as a master key, granting unauthorized access to internal systems, customer data, or financial records. For companies operating under California’s Consumer Privacy Act (CCPA), this could also trigger regulatory fines and legal action.

The Fix:

Implement password policies that require longer, complex passphrases, require multi-factor authentication (MFA), and encourage the use of password managers. It’s like handing out safes instead of sticky notes.

2. Out of Sight, Out of Reach: Lack of Regular Backups

Think of your business data like your home; it needs insurance. If you’re not backing up files regularly, you’re playing Russian roulette with ransomware.

In 2023, over 70% of businesses globally faced ransomware risk, according to IBM’s X-Force Threat Intelligence Index. These attacks encrypt your files and hold your operations hostage. And for SMBs in California, downtime means lost customers, lost trust, and often, never reopening.

Without backups, you only have to pay the ransom or lose your data permanently. Either way, it’s a disaster.

The Fix:

Automate daily backups across cloud and local systems and test those backups monthly to ensure they’re restorable. An excellent data loss prevention strategy doesn’t just store data; it retrieves it quickly.

3. People Are the Perimeter: Inadequate Employee Cybersecurity Training

Even with firewalls and endpoint protection, one click on a phishing email can unravel everything.

Employees are often the weakest link. They haven’t been trained to spot threats. This is especially relevant during National Insider Threat Awareness Month (September). In the past year, 68% of business data breaches originated internally, whether by accident or intent.

Staff may unknowingly download malware, reuse passwords, or fall for impersonation scams without awareness. These common cybersecurity errors can lead to compliance violations or worse.

The Fix:

Schedule quarterly cybersecurity awareness training. Cover phishing red flags, safe browsing habits, and secure data handling practices. Reinforce with simulated phishing tests. Cybersecurity should be treated like first aid, whereas it should be second nature.

4. Too Much Access, Too Little Control: Misconfigured Permissions

Giving employees blanket access to data “just in case” is like giving every intern a key to the company safe.

Access permissions should follow the principle of least privilege. Employees should only have access to what they need. Yet, many SMBs leave folders, cloud drives, or CRMs wide open, assuming internal users won’t pose a risk.

In 2024, researchers found that over 45% of data breaches involved over-permissioned users. And in sectors like healthcare and finance, this translates into major compliance issues.

One compromised account can expose data far beyond its original scope. And internal sabotage? Easier when sensitive data is accessible company wide.

The Fix:

Audit permissions quarterly. Use role-based access controls (RBAC) and integrate with tools that log and alert for unusual behavior. Protecting business data means tightening the locks digitally.

5. Ignoring the Obvious: Failing to Patch and Update Systems

Outdated software is like leaving your front door unlocked and hoping no one notices. Unfortunately, hackers always notice.

Every day, vendors issue patches for security flaws. However, when businesses postpone updates due to their busy schedules or concerns about downtime, they create a pathway for potential vulnerabilities. One infamous example is the 2017 Equifax breach, caused by a known vulnerability left unpatched for two months, which impacted 147 million people.

Unpatched systems are easy targets for automated scanning tools. Malware, ransomware, and zero-day exploits thrive in these environments.

The Fix:

Configure systems to automatically update whenever possible and create a monthly patching schedule for on-premises devices. Subscribe to vendor alert feeds or use managed IT services to track critical vulnerabilities. Patching serves as a preventative measure, similar to cleaning your teeth.

Security by Design: Be Proactive, Not Reactive

Every one of these data security mistakes is avoidable. But for many small businesses, especially those focused on growth, cybersecurity can feel like a backburner issue until it’s not.

Cybersecurity Ventures projects $10.5 trillion in global cybercrime damage by 2025, up from $9.5 trillion in 2024. That’s more than the GDP of every country except the U.S. and China.

Your business data is a target, whether you’re operating out of Modesto, Mountain View, or anywhere in between. And no firewall, tool, or software can compensate for a weak security culture.

Ready to Close the Gaps?

At GSD Solutions, we help SMBs take action on what matters most: protecting business data through innovative strategy and prevention. Our team provides expert cybersecurity services addressing these risks, from automated backups and permission audits to phishing training and patch management.

Don’t wait for a breach if you’re unsure where your business stands.

Schedule a consultation to talk to an IT expert about your current gaps. We can help you build a security-first environment with dependable managed IT services that grow with your business.