Remember in school when you learned stop, drop, and roll as the game plan for dealing with fire?  You and your classmates may have even practiced stopping what you were doing, dropping to the ground, and rolling as a way to handle the extremely stressful situation of your clothing being on fire.

Right now, it may be just a memory, but it’s actually a good plan for dealing with a breach.  You need a plan because when things go wrong and everything’s on fire, that’s not the time to figure things out.  Let’s think past the breach for a moment and look at T-Mobile and Westend Dental, who are both dealing with fallout from poorly executed responses to breaches.

cause when a cyberattack hits, the damage doesn’t stop at stolen data or locked systems. The real danger is in how a business responds or fails to respond. Two recent high-profile cases highlight the devastating consequences of mishandling a breach.

The Westend Dental breach occurred in 2020.  T-Mobile’s happened in 2021.  They seem like old news, right?  Wrong.

These cases serve as stark reminders for businesses of all sizes: without a well-thought-out Incident Response Plan (IRP), the fallout from a cyberattack can spiral into legal, financial, and reputational ruin.

T-Mobile: A Failure to Communicate

In 2021, T-Mobile suffered a breach that exposed the sensitive personal data of 76.6 million customers. But their response turned a bad situation into a catastrophic one:

  • Delayed Detection: T-Mobile didn’t discover the breach for nearly six months, relying on an external alert to uncover the incident.
  • Incomplete Notifications: Customers were notified via brief text messages, omitting crucial details like whether Social Security numbers were compromised.
  • Downplaying the Impact: T-Mobile allegedly misled customers, which led to legal action from the Washington Attorney General.

The result? T-Mobile has already paid $365.75 million in penalties and settlements, with additional lawsuits still in play.

Westend Dental: The Price of Denial

Westend Dental faced a ransomware attack in 2020 but claimed that patient data was lost due to an "accidentally formatted hard drive." This deception unraveled under investigation:

  • HIPAA Violations: The company waited two years—far beyond HIPAA’s 60-day notification requirement—to inform affected patients.
  • No Incident Response Plan: Their lack of preparation meant delays, incomplete data recovery, and failure to communicate with patients.
  • Loss of Trust: The company’s dishonesty led to a $350,000 fine and significant reputational damage.

The Consequences of Mishandling a Breach

These cases demonstrate how poor handling of a breach magnifies the damage:

  1. Regulatory Fines: T-Mobile and Westend Dental incurred severe financial penalties for failing to meet notification and security standards.
  2. Erosion of Trust: Customers expect honesty. Misleading or incomplete responses alienate them permanently.
  3. Operational Downtime: Without a practiced plan, businesses face extended recovery times, which compound losses.
  4. Customer Loss: Mishandling a breach often drives customers away, slashing long-term revenue and growth potential.

The Critical Role of an Incident Response Plan

  • An incident response plan (IRP) isn’t just for your IT team. It’s a vital tool to protect your business’s reputation, maintain customer trust, and reduce liability during a crisis. Is your organization ready? Ask yourself these seven key questions to evaluate your preparedness:

1. Do You Have a Certified Incident Responder?

  • Certified responders ensure your team is equipped to act swiftly and effectively. If you’re unsure, we can evaluate your IT team’s readiness and certify responders for critical scenarios.

2. Do You Have Notification Protocols in Place?

  • Are you confident that your response will meet legal standards for timeliness and content? If not, we can help implement policies and processes to ensure your organization complies with regulations and reduces liability exposure.

3. Do You Conduct Tabletop Exercises?

  • Simulating breach scenarios stress-tests your plan and helps identify gaps. At ClientWatch, we specialize in facilitating these exercises and tailoring them to your organization’s needs. Contact us to develop a robust incident response program.

4. Do You Provide Actionable Advice During a Breach?

  • Your customers need clear, specific steps to protect themselves—such as resetting passwords or monitoring accounts. Our post-incident reports deliver actionable recommendations that exceed today’s best practices.

5. Are Your Communications Clear and Transparent?

  • Misinformation can damage trust. ClientWatch trains your team to deliver accurate updates across all channels, ensuring customer confidence during the chaos of an incident.

6. Do You Document Every Decision and Action?

  • If someone points a finger after a breach, documentation is your best defense. Our compliance programs help organizations systematically document and validate their security operations over time. If this isn’t on your roadmap for 2025, it should be.

7. Do You Offer Post-Breach Support?

  • Offering credit monitoring or identity theft protection can demonstrate your commitment to customer care. We can guide you in creating a post-breach strategy that fosters trust and protects your brand.

Take Action Today

If you’re missing any of these critical elements, don’t wait for a crisis to expose the gaps. ClientWatch partners with organizations to build, test, and maintain effective incident response plans, ensuring you’re prepared to handle the unexpected with confidence.

In addition to having a plan, you need to practice.  At Galactic Advisors we not only help clients create thorough Incident Response Plans, but we also conduct exercises to see how those plans work.  This allows every member of your team to learn their roles, anticipate challenges, and find clarity while they’re calm.  That way, when the fire starts, every person is on board regarding how to respond.

The Takeaway: Transparency Is Key to Survival

T-Mobile and Westend Dental’s missteps highlight a critical lesson: how you respond to a breach often matters more than the breach itself. Poor communication and lack of preparation amplified their losses and shattered customer trust.

For businesses, the message is clear: prepare now or pay later. As cyber threats grow more sophisticated, an incident response plan (IRP) that prioritizes transparent, customer-focused communication is the only way to survive in today’s cyber landscape.

The good news? Building a robust incident response strategy is achievable. We’ve helped businesses like yours implement effective security programs within just one quarter. You don’t have to tackle this alone. We can guide you through every step to protect your business, your customers, and your reputation.

Think you don’t have time? Consider this: Do you have time to be the next T-Mobile or Westend Dental? Let’s get started now.