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Is Your Tech Company Next? Lessons from the Neon App Data Breach

It seems like every week we hear about another data breach, and this week is no different. The latest headline features the popular call-recording application, Neon, which reportedly went dark after a security lapse exposed a vast database of sensitive user information. According to a report by TechCrunch, this included users’ phone numbers, call recordings, and even transcripts.

This incident is not an outlier; it is a recurring theme in the technology sector. For tech companies, especially start-ups and scale-ups, the pressure to innovate and grow can sometimes overshadow the critical need for robust cybersecurity. While these companies often have brilliant developers and engineers, the specialist knowledge required to build and maintain secure systems is a different discipline entirely.

The Standard Privacy Policy Clause

If you look at the privacy policy of many tech companies, you will likely find a clause similar to Neon’s, which states:

“We make reasonable efforts to protect your information by using physical and electronic safeguards designed to improve the security of the information we maintain. However, because no electronic transmission or storage of information can be entirely secure, we can make no guarantees as to the security or privacy of your information.”

While legally prudent, this statement highlights a crucial point. What constitutes “reasonable efforts”? More importantly, it serves as a disclaimer that security cannot be guaranteed. In our experience, without dedicated external cybersecurity expertise, these efforts can fall significantly short of what is required to defend against today’s determined attackers.

The Pitfall of ‘Do-It-Yourself’ Security

Many technology companies believe they can manage cybersecurity in-house. They might achieve certifications like ISO 27001 or SOC 2, believing these frameworks are a complete solution. However, these are just guidelines. They provide a map, but they do not teach you how to navigate the complex and hostile terrain of the digital world.

This overconfidence can often be attributed to a psychological principle known as the Dunning-Kruger effect, where individuals with limited knowledge in a specific area tend to overestimate their competence. A team can be exceptional at writing code for a product, but that does not automatically make them experts in secure coding, infrastructure hardening, or threat detection.

From our experience helping hundreds of businesses, we have not seen a single one that has managed to implement comprehensive security correctly on its own. The reality is that building a secure business requires a deep, specialist skill set. It involves complex tasks that are often overlooked, such as:

  • Hardening Cloud Servers: Configuring Cloud and servers to minimise the attack surface.
  • Secure Code Reviews: Analysing application code to identify and fix security flaws before they can be exploited.
  • Cloud Platform Configuration: Correctly configuring the hundreds of security settings within platforms like Microsoft 365 or Google Workspace to prevent unauthorised access and data leakage.

These are just a few examples of the multifaceted approach required for effective cybersecurity.

Why External Expertise Is No Longer Optional

The lesson from the Neon breach, and the many others before it, is clear: preventing a hack is far more important and less costly than dealing with the aftermath. For technology companies, whose reputation is built on trust and innovation, a data breach can be devastating.

If you are a tech business, whether a start-up or a scale-up, it is advisable to consider seeking external cybersecurity experts. Attempting to handle it all yourself is a significant risk that, as we have seen time and again, often does not pay off.

The Neon example should serve as a powerful motivator to take proactive steps. Do not wait until your company’s name is in the headlines for the wrong reasons.

At Vertex, we specialise in providing cybersecurity solutions for technology businesses. We understand the unique challenges faced by start-ups and scale-ups and can help you build a security posture that protects your data, your customers, and your reputation.

If you are concerned about your company’s security, we invite you to have a chat with us about how we can help. Contact Vertex today to learn more.

CATEGORIES

Data Breach

TAGS

Application Security - Cybersecurity - data breach - Dunning-Kruger Effect - hacked - ISO 27001 - SOC 2 - Tech Startup

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