[Blog](/blog) Show links Resources [Blog](/blog) [Breaches](/breaches) [eBooks, reports, & more](/resources) [Events](/events) [News](/news) [Data Breaches](/category/data-breaches) Show links Categories [Attack Surface Management](/category/attack-surface-management) [Company News](/category/company-news) [Compliance and Regulations](/category/compliance-and-regulations) [Cybersecurity](/category/cybersecurity) [Data Breaches](/category/data-breaches) [DevOps](/category/devops) [Human Cyber Risk](/category/human-cyber-risk) [Risks and Vulnerabilities](/category/risks-and-vulnerabilities) [Third-Party Risk Management](/category/third-party-risk-management) [Vendor Risk Management](/category/vendor-risk-management) [5 Ways Tech Companies Can Prevent Data Breaches](/blog/how-tech-companies-can-prevent-data-breaches) Publish date November 16, 2025 {x} minute read # 5 Ways Tech Companies Can Prevent Data Breaches [Get a demo](/contact-sales) [Free trial](/demo) [Download the PDF guide](/resources/complete-guide-to-data-breaches) [Free trial](/demo) Written by [Catherine Chipeta](/team/catherine-chipeta) Cybersecurity Writer Catherine's work has influenced leaders in technology, SaaS, government, and financial services. Reviewed by [Kaushik Sen](/team/kaushik-sen) Chief Marketing Officer Kaushik has a background in software engineering, enterprise solution architecture, and data analytics. He brings a unique, data-driven perspective to cybersecurity education. Table of contents eBook A Complete Guide to Data Breaches Free resource ### A Complete Guide to Data Breaches Learn how to avoid a costly data breach with a comprehensive prevention strategy. [Download now](/resources/complete-guide-to-data-breaches) The technology industry has unlocked innovation across all sectors as an enabler of [digital transformation](https://www.upguard.com/blog/digital-risk). Most organizations are now outsourcing critical operations to tech companies, such as cloud providers. Tech vendors are now left to manage an ever-growing volume of sensitive data, which they must secure effectively to [prevent large-scale data breaches](https://www.upguard.com/blog/prevent-data-breaches). IBM and Ponemon Institute’s 2022 Cost of a Data Breach Report found a [record high average breach cost of US$4.35 million](https://www.upguard.com/blog/cost-of-data-breach). Aside from the immediate financial penalties, breached organizations also pay the long-term cost of irreversible reputational damage. This article explores why the tech industry is a high-risk data breach target and how effective security policies can drive data protection across the supply chain.  ## What is a Data Breach? A [data breach](https://www.upguard.com/blog/data-breach) occurs when an unauthorized individual gains access to [sensitive data](https://www.upguard.com/blog/sensitive-data) by copying, transmitting, viewing, or stealing it. Hackers exploit this data to commit [identity theft](https://www.upguard.com/blog/identity-theft), insurance fraud, and other lucrative cybercrimes.   Data breaches can expose the following types of data: * Financial information, including credit card numbers and bank account details * Social Security numbers * Driver’s license details * Other personal data, such as phone numbers and residential addresses * Intellectual property * Trade secrets [Learn how to secure sensitive data.](https://www.upguard.com/blog/sensitive-data) Common data breach causes include: * [Undiscovered data leaks](https://www.upguard.com/blog/data-leak-prevention-tips)[‍](https://www.upguard.com/blog/network-security) * [Poor network security](https://www.upguard.com/blog/network-security)‍ * Software vulnerabilities[‍](https://www.upguard.com/blog/cloud-misconfiguration) * [Software misconfigurations](https://www.upguard.com/blog/cloud-misconfiguration)‍ * Physical theft, such as stolen hard drives or laptops[‍](https://www.upguard.com/blog/prevent-third-party-data-breaches) * [Third-party breaches](https://www.upguard.com/blog/prevent-third-party-data-breaches) [Learn data breach prevention tips.](https://www.upguard.com/blog/prevent-data-breaches) ## Why Tech Companies Should Worry About Data Breaches Cybercriminals know that tech companies often have weaker data protection and overall cybersecurity measures than highly-regulated industries, like [healthcare](https://www.upguard.com/blog/cybersecurity-regulations-and-frameworks-healthcare) and [finance](https://www.upguard.com/blog/cybersecurity-regulations-financial-industry). Instead of targeting these organizations directly for their valuable data, they focus their efforts on the poor data security often found in the [first link of the supply chain](https://www.upguard.com/blog/supply-chain-attack) – tech vendors that store and manage significant amounts of data from these industries. Data breaches in the tech industry prove devastating, causing a domino effect throughout the supply chain with the compromise of hundreds or even thousands of customers and their customers’ data.  [Learn how to choose the best attack surface management product for the tech industry >](https://www.upguard.com/blog/choosing-a-tech-attack-surface-management-product) For example, the [SolarWinds](https://www.upguard.com/security-report/solarwinds) supply chain attack of December 2020 affected almost 18,000 of the network management provider’s customers. Consequently, the breach affected the [US Government](https://www.upguard.com/news/u-s-government-data-breach) and multinational tech vendors, including [Intel](https://www.upguard.com/security-report/intel), [NVIDIA](https://www.upguard.com/security-report/nvidia), and [Microsoft](https://www.upguard.com/security-report/microsoft), further impacting thousands more customers.  SolarWinds faced a lengthy and costly recovery process, outlined below. * SolarWinds’ stock [declined by approximately 40%](https://www.securitymagazine.com/articles/97602-solarwinds-data-breach-lawsuit-takeaways-for-cisos) within a week of the breach becoming public. - SolarWinds reported [spending between $18 and $19 million](https://www.reuters.com/technology/solarwinds-says-dealing-with-hack-fallout-cost-least-18-million-2021-04-13/) on investigation and remediation costs in Q1 of 2021. * SolarWinds faced a [class-action lawsuit from shareholders](https://www.scmagazine.com/news/breach/solarwinds-lawsuits-merge-as-stockholders-begin-documenting-financial-losses) who experienced significant financial losses following the breach. - SolarWinds reported [customer renewal rates dropped](https://www.zdnet.com/article/solarwinds-ready-to-move-past-breach-and-help-customers-manage-theirs/) from the low- to mid-90s to the 80s in the year following the incident. [Learn about the biggest data breaches of all time. ](https://www.upguard.com/blog/biggest-data-breaches) ## 6 Data Breach Prevention Strategies for Tech Companies If a cyber attack occurs, effective data security practices can significantly reduce the risk of a data breach. Below are five strategies tech companies can implement to protect against data breaches. For a more technical guide on preventing data breaches, [refer to this post](https://www.upguard.com/blog/prevent-data-breaches). ### 1. Limit Data Access Tech vendors must enforce Zero-Trust Architecture (ZTA) to limit internal and external data access to prevent data loss. ZTA assumes any user outside the network perimeter cannot be granted access to protected resources without further authentication or verification. Zero Trust security models consist of several security controls, such as the principle of least privilege and multi-factor authentication, to provide better visibility and control over who accesses sensitive data. [Learn how to implement ZTA.](https://www.upguard.com/blog/prevent-supply-chain-attacks-with-zero-trust-architecture) #### The Principle of Least Privilege The principle of least privilege restricts all users to the least amount required to perform their jobs, reducing the risk of insider threats, which could result in intentional or accidental data exposure. You should also schedule regular audits to revise employees’ access privileges which may have changed over time, for example, if they leave the company or change roles. [Learn more about the principle of least privilege](https://www.upguard.com/blog/principle-of-least-privilege) #### Multi-Factor Authentication (MFA) Multi-factor authentication (MFA) requires users to provide two or more authentication factors to access an account or system. These additional factors help verify users and prevent cybercriminals from hacking into corporate accounts with stolen passwords.  [Learn more about MFA.](https://www.upguard.com/blog/mfa-multi-factor-authentication) ### 2. Provide Security Awareness Training Verizon's 2022 Data Breaches Investigations Report found that [82% of reported breaches involved a human element](https://www.verizon.com/business/resources/reports/dbir/). Cybersecurity awareness programs help prevent security breaches caused by human error, benefitting all organizations, including those of small business owners.  Basics such as keeping operating systems updated and using a VPN on public networks,  A phishing attack is the most common initial attack vector leading to a data breach. Tech companies should focus their awareness programs on preventing vulnerabilities that facilitate these security incidents, such as data leaks. [Learn the difference between a data breach and a data leak.](https://www.upguard.com/blog/data-breach-vs-data-leak) #### Password Training  Weak passwords are easy to crack using [brute-force methods](https://www.upguard.com/blog/brute-force-attack), and [reused passwords quickly become an issue](https://www.upguard.com/blog/this-password-has-appeared-in-a-data-leak) in the event of a [data leak](https://www.upguard.com/blog/data-leak).  Employees should be aware of the following best practices for keeping their credentials safe: * Use unique, strong passwords * Regularly update passwords * Don’t share passwords * Set social media settings to private * [Understand the security threats of password managers](https://www.forbes.com/sites/daveywinder/2022/08/25/lastpass-hacked-password-manager-with-25-million-users-confirms-breach/) * [Set up multi-factor authentication (MFA)](https://www.upguard.com/blog/mfa-multi-factor-authentication) [Use this password security checklist in your awareness training program.](https://www.upguard.com/blog/the-password-security-checklist) #### Identifying Phishing Scams Cybercriminals trick employees into disclosing sensitive information with social engineering techniques, such as phishing scams. They exploit this privileged data to gain access permissions to corporate systems. Once inside the internal network, the hackers commit more serious cybercrimes, such as [data exfiltration](https://www.upguard.com/blog/how-to-detect-data-exfiltration), malware injections, and [ransomware attacks](https://www.upguard.com/blog/ransomware).  [Learn the features of an ideal risk remediation tool for the tech sector >](https://www.upguard.com/blog/choosing-a-tech-cyber-risk-remediation-product) Phishing emails have defining characteristics, such as poor spelling and grammar, unusual requests, and a sense of urgency. Teaching employees how to identify these traits helps prevent [business email compromise](https://www.upguard.com/blog/business-email-compromise) and potential data breaches in the making. Organizations should also deploy antivirus software for additional endpoint security, should phishing awareness fail. [Learn how to spot phishing scams.](https://www.upguard.com/blog/phishing) ### 2. Segment Your Networks Network segmentation is a crucial network security practice for tech providers. Segmenting your main network into smaller subnetworks restricts lateral movement across the rest of your network. If one network is compromised, the others remain protected – unlike flat networks, which can easily facilitate large-scale attacks by providing cybercriminals full access to all connected entities.  Individual subnetworks have their own access points, log-in credentials, and firewalls. These mechanisms provide additional protection against [cyber threats](https://www.upguard.com/blog/cyber-threat), which could shut down operations if the entire network is affected, such as [DDoS attacks](https://www.upguard.com/blog/what-is-a-ddos-attack).  [Learn best practices for network segmentation](https://www.upguard.com/blog/network-segmentation-best-practices). ### 3. Implement a Cybersecurity Framework Organizations from all industries trust tech companies to manage their internal data securely. Customers from highly-regulated industries must ensure their vendors also comply with these requirements or risk non-compliance. Implementing a recognized cybersecurity framework, like [NIST CSF](https://www.upguard.com/blog/nist-cybersecurity-framework), can help your organization better manage and [mitigate cyber risk](https://www.upguard.com/blog/reduce-cybersecurity-risk) by providing a baseline for minimum security controls. Frameworks also allow for compliance mapping, helping you [measure and maintain compliance](https://www.upguard.com/blog/what-is-compliance-management) with several industry standards, including [PCI DSS](https://www.upguard.com/blog/metrics-for-tracking-pci-dss-compliance) and [ISO 27001](https://www.upguard.com/blog/what-is-iso-27001). Proven compliance with popular standards and regulations builds customer trust, with confidence that you’re implementing strict data security measures to protect their sensitive data.  [Learn how to implement the NIST Cybersecurity Framework.](https://www.upguard.com/blog/nist-cybersecurity-framework) ### 4. Stop Data Leaks [Data leaks occur](https://www.upguard.com/blog/data-leak) when sensitive information is accidentally exposed – either physically or on the Internet. Time is of the essence with data leaks – left undetected too long and cybercriminals will find and exploit them as entry points in a cyber attack. For example, [misconfigured software settings](https://www.upguard.com/blog/cloud-misconfiguration) can publicly expose corporate data, facilitating unauthorized access to internal systems. A robust [incident response plan](https://www.upguard.com/blog/incident-response-plan) with fast remediation capabilities is vital to stopping data leakage before cybercriminals can find these exposures. [A capable data leak detection solution](https://www.upguard.com/product/breach-risk/threat-monitoring) continuously monitors all layers of the web to [identify data leaks](https://www.upguard.com/blog/common-data-leak-causes) affecting an organization and its vendors, preventing potential security breaches. ### 5. Identify All Vulnerabilities According to Palo Alto research, cybercriminals begin [scanning for vulnerabilities within 15 minutes of a new CVE announcement](https://www.bleepingcomputer.com/news/security/hackers-scan-for-vulnerabilities-within-15-minutes-of-disclosure/). For tech companies, the consequences of an [exploited zero-day](https://www.upguard.com/blog/zero-day) prove deadly. For example, hackers can [exploit vulnerabilities](https://www.upguard.com/blog/vulnerability) in software update code and [inject ransomware](https://www.upguard.com/blog/ransomware) or [other malware](https://www.upguard.com/blog/types-of-malware), infecting hundreds of customers in the process.  Fast vulnerability detection is the key to identifying and patching software vulnerabilities before they become a direct access point for [large-scale supply chain attacks](https://www.upguard.com/blog/how-to-prevent-supply-chain-attacks). [Reliable attack surface management (ASM) solutions](https://www.upguard.com/blog/best-attack-surface-management-software-solutions) provide tech companies with the speed and visibility required to manage emerging vulnerabilities and other cyber threats. Unlike manual detection methods, [ASM software](https://www.upguard.com/blog/attack-surface-management-software) detects security issues in real time and assigns a criticality rating, allowing security teams to prioritize remediation efforts.  eBook A Complete Guide to Data Breaches Free resource ### A Complete Guide to Data Breaches Learn how to avoid a costly data breach with a comprehensive prevention strategy. [Download now](/resources/complete-guide-to-data-breaches) ## Related posts Learn more about the latest issues in cybersecurity. Attack Surface Management #### [Find Out if You're Exposed on the Dark Web](/blog/find-out-if-youre-exposed-on-the-dark-web) Answer 5 quick questions to predict what a dark web scan will find about your company. Then run the free scan to see your real exposure. [](/team/lance-turner) [Lance Turner](#) October 14, 2026 Data Breaches #### [Your First Dark Web Scan Report, Explained](/blog/your-first-dark-web-scan-report-explained) You scanned your domain. What do the results mean? [](/team/lance-turner) [Lance Turner](#) October 13, 2026 Data Breaches #### [Good Security Rating? Your Dark Web Exposure Says Otherwise](/blog/good-security-rating-your-dark-web-exposure-says-otherwise) Scan your domain to see just how exposed you are on the Dark Web. [](/team/lance-turner) [Lance Turner](#) October 13, 2026 Data Breaches #### [How to Prevent Data Breaches in 2026 (Highly Effective Strategy)](/blog/prevent-data-breaches) Learn how to implement an effective security control strategy for defending against data breaches in 2026. [](/team/edward-kost) [Edward Kost](#) October 21, 2026 Attack Surface Management #### [Attack Surface Management Vendors Compared](/blog/attack-surface-management-vendors-compared) We compared ASM vendors and helped you rate them before agreeing to a POC! [](/team/lance-turner) [Lance Turner](#) October 13, 2026 Attack Surface Management #### [The Blind Spot in Brand Protection: Why App Stores Slip Past Standard Monitoring](/blog/the-blind-spot-in-brand-protection-why-app-stores-slip-past-standard-monitoring) Do Brand Protection Solutions scan the Apple App Store and Google Play? Don't wait to find out. [](/team/lance-turner) [Lance Turner](#) September 22, 2026 [All posts](/blog) Experience superior visibility and a simpler approach to cyber risk management [Get a demo](/contact-sales) [Free trial](/demo)