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7 Confidential Data Mistakes That Could Cost Your Business

May 14th, 2025 | 4 min. read

By Mark Sheldon Villanueva

Confidential Information given to your business

Editor's note: This post was originally published on May 29, 2018 and has been revised for clarity and comprehensiveness.

 
Any of these mistakes could potentially expose your customers’ confidential information.

Handling confidential information is a responsibility every business shares, but it’s one that not every business gets right. From client details and financial data to trade secrets and employee records, the stakes are high. A single slip-up can lead to data breaches, loss of trust, legal penalties, and reputational damage.

The good news? Most mistakes are entirely preventable. Intelligent Technical Solutions is a managed security service provider (MSSP) that has helped hundreds of businesses avoid habits and mishaps that could put their sensitive data at risk. In this article, we’ll cover the most common confidential information mistakes businesses make, and how you can avoid them. 

IT professionals review sensitive data, illustrating common business data breaches and cybersecurity mistakes

Mistake #1: Weak Password Practices 

Passwords are the first line of defense between your confidential information and cybercriminals. Yet, studies repeatedly show that weak passwords are still one of the leading causes of data breaches. In fact, 86% of cyberattacks involve weak or stolen credentials.

The main reason for that are weak password practices like using easy-to-guess passwords (like 123456 or password!), reusing passwords across multiple accounts, or sharing passwords via unsecured channels like email or chat.

How to avoid it: 

  • Enforce strong password policies that require a mix of uppercase and lowercase letters, numbers, and special characters. Min 15 characters in length and use pass phrases! 
  • Use password managers to generate and securely store complex passwords. 
  • Mandate multi-factor authentication (MFA) for every business-critical platform and tool. 
  • Regularly audit employee passwords and conduct forced password resets if needed. 

Mistake #2: Poor Access Controls 

Not every employee needs access to every document, customer record, or company database. Poor access controls lead to situations where confidential information is too widely available. That opens your company to the risk of accidental leaks or malicious misuse from insider threats. 

How to avoid it: 

  • Implement role-based access control (RBAC) so that employees only access information necessary for their roles. 
  • Review access permissions regularly. 
  • Automate access removal during employee offboarding. 
  • Document and communicate clear guidelines for requesting access to sensitive data. 

Mistake #3: Mishandling Data on Personal Devices 

Remote work and BYOD policies are common. However, without proper security, personal devices can be gateways for cybercriminals. Employees may store sensitive data on laptops or smartphones that are not encrypted or protected, making data theft far too easy if the device is lost or hacked.

How to avoid it: 

  • Establish clear BYOD policies that require secure configurations and app usage. 
  • Use Mobile Device Management (MDM) software to enforce encryption and remote wipe capabilities. 
  • Educate employees about the risks of using personal devices for work tasks. 
  • Prohibit storage of sensitive information on personal devices unless company security controls are in place. 

Mistake #4: Sending Sensitive Information Over Unsecured Channels 

Many businesses still share confidential information through unencrypted emails, text messages, or public file-sharing links, making them easy targets for cybercriminals. Those are all insecure channels that are common targets for hackers. They can easily intercept unencrypted data sent using those methods. Additionally, using public Wi-Fi or other unverified networks to send sensitive information makes it easy for cybercriminals to eavesdrop.

How to avoid it: 

  • Invest in secure file-sharing tools like encrypted email services. 
  • Train staff never to send passwords or sensitive data via standard email or unsecured messaging apps. 
  • Require VPN use for remote work or when working on public networks. 
  • Include “secure communication” as part of employee onboarding. 

Mistake #5: Ignoring Employee Training 

Technology alone isn’t enough. If your team doesn’t know how to handle confidential data, they may unknowingly become the weak link to your security efforts. In fact, 3 out 4 IT experts believe human error is the top cybersecurity risk they should be worried about. Phishing attacks, social engineering, and accidental sharing of private information happen when staff lack the right knowledge. 

How to avoid it: 

  • Conduct quarterly security awareness training sessions with real-world scenarios. 
  • Use phishing simulations to test and improve employee awareness. 
  • Make security part of your company culture by sharing regular tips and reminders. 
  • Reward good security practices with recognition or incentives.

Mistake #6: Failing to Dispose of Sensitive Documents Properly 

Physical documents, old hard drives, and outdated devices often contain valuable information. Simply throwing them away or selling them without proper asset disposal processes can lead to unintended data exposure. What’s worse is that some cybercriminals exploit discarded materials to gather information for attacks.

How to avoid it: 

  • Set up secure document disposal processes (shredders and locked bins). 
  • Partner with certified e-waste disposal companies that offer documented data destruction services. 
  • Wipe all hard drives, devices, and USBs before disposal. 
  • Periodically audit disposal procedures for compliance.

Mistake #7: Keeping Customer Credit Card Information Longer than Necessary 

While storing credit card data for convenience seems helpful, it can become a huge liability, especially if data retention practices are not aligned with regulatory standards. The longer sensitive data sits in your systems, the more likely it is to become a target for cyberattacks. If your business doesn’t strictly follow PCI DSS compliance guidelines, hackers will target stored payment data, and you could be on the hook for millions in fines and damages.

How to avoid it: 

  • Store payment information only if absolutely required for recurring transactions — and ensure compliance with PCI DSS standards. 
  • Purge outdated or unnecessary credit card data on a scheduled basis. 
  • Use tokenization or third-party payment processors to avoid storing sensitive information altogether. 
  • Communicate clear data retention and destruction policies to all employees handling payment data. 

Handling confidential information is a responsibility every business shares, but it’s one that not every business gets right. From client details and financial data to trade secrets and employee records, the stakes are hig

Need Help Protecting Confidential Information? 

Protecting confidential information isn’t just about ticking boxes or following rules, it’s about preserving your business’s reputation and avoiding costly mistakes. By understanding these common pitfalls and proactively taking steps to address them, you can significantly reduce the likelihood of a data breach or compliance violation. 

If you’re unsure whether your company is doing enough to protect sensitive data, now’s the time to evaluate your efforts. Take our free security assessment test to find out how your defenses stand up. If you need more help, schedule a meeting with our cybersecurity experts at ITS. Our team can guide you through best practices. 

 

Mark Sheldon Villanueva

Mark Sheldon Villanueva has over a decade of experience creating engaging content for companies based in Asia, Australia and North America. He has produced all manner of creative content for small local businesses and large multinational corporations that span a wide variety of industries. Mark also used to work as a content team leader for an award-winning digital marketing agency based in Singapore.