Staff info leaks raise worries as company databases swell

Blockchain-backed technologies are effective to protect data but remain expensive

- Devina Sengupta & Shouvik Das

The ever-bulging employee databases of companies are increasingly getting leaked into the internet for want of adequate security measures and, in some cases, for want of investment into available cybersecurity technologies.

On 12 November, Amazon Inc. confirmed a 2023 employee data leak through a third-party vendor, bearing PIIs (personally identifiable information) of more than 100 million individuals from 2,000-plus companies—the biggest reported incident of its nature.

Then, in October this year, US telecom firm Cisco faced a significant data leak of classified internal documents.

In India, the problem is getting more acute as companies try to increase their diversity quotient; as hiring, or even retrenchments, increase in a volatile economic environment; and as companies seek to roll out more customized benefit plans for key employees.

Rajesh Padmanabhan, CEO of Talavvy, a Mumbai-based business transformation lab, said leaked employee databases can put the entire enterprise at risk, and breach of privacy means violation of corporate governance.

"For instance, if the list of diversity, equity, and inclusion (DEI) details is leaked externally, then one can access information of the employees, their special abilities and sell them to insurance, etc., without their consent," he said.