How Do Big Companies Get Hacked, and How Can You Avoid Getting Hacked?

It seems like every few months, another headline breaks about a major corporation suffering from a devastating cyberattack. From toy giants like Hasbro to healthcare manufacturers like Stryker, cyberattacks on corporations hit businesses of every size and across industries. If companies with entire IT departments and million-dollar security budgets can get breached, what does that mean for the rest of us? More than you might think – because the way big companies get hacked and the way everyday people get hacked aren't all that different.

Why Do Big Companies Get Hacked?

It's easy to assume that big companies getting hacked is the result of some sophisticated, movie-style infiltration. In reality, most corporate hacking starts with something surprisingly simple: a weak password, a clicked phishing link, or an employee who didn't know what to look for.

Here are five of the most common reasons corporate hacks succeed:

1. They're High-Value Targets

Large companies hold enormous amounts of valuable data, such as credit card numbers, bank account details, personal information, employee records, and proprietary business data. That makes them attractive targets. The bigger the company, the bigger the potential payoff for hackers.

2. Social Engineering Attacks

One of the most common entry points into a corporate business network isn't a technical vulnerability; it’s a person. Social engineering attacks manipulate employees into handing over credentials or clicking malicious links, often through convincing emails, phone calls, or even text messages that appear to come from trusted sources. This is called phishing, and it works on Fortune 500 employees just as well as it works on anyone else.

3. Weak Passwords and Poor Access Controls

A single weak password can give hackers access to an entire network. Many corporate breaches start with compromised employee credentials, especially when companies don't require strong passwords or multi-factor authentication across all systems. Hackers can exploit these gaps quickly and quietly, often going undetected for weeks or months.

4. Too Many Entry Points

Large organizations have complex networks with hundreds – and sometimes thousands – of connected devices, software systems, and third-party vendors. Every connection is a potential entry point. The more complex the network, the more opportunities hackers can exploit.

5. Outdated Systems

Legacy software and unpatched systems are among the easiest targets in corporate hacking. When companies delay updates or continue running outdated technology, they leave known vulnerabilities open for attackers to walk right through.

What Happens When a Big Company Gets Hacked?

The consequences of a corporate hack go far beyond an embarrassing headline. When a big company gets hacked, the fallout can include:

• Ransom payments — Many attacks involve ransomware, where hackers encrypt company data and demand payment to restore access.
• Business interruption — Operations can grind to a halt for days or weeks while companies recover.
• Regulatory fines — Depending on the industry, companies may face significant penalties for failing to protect customer data.
• SEC filing requirements — Publicly traded companies are now required to disclose material cybersecurity incidents, adding legal and reputational pressure.
• Customer data exposure — Personal information, credit card numbers, and bank accounts belonging to millions of customers can be compromised in a single breach.

Cybersecurity experts estimate the average cost of a data breach runs into the millions – and that doesn't account for the long-term reputational damage that follows.

What Is Cyber Liability Insurance, and Does Your Business Need It?

One question that comes up often after high-profile breaches is: What is the best corporate insurance for a cyberattack? Cyber liability insurance, sometimes called cyber risk insurance, helps businesses cover costs associated with a breach, including legal fees, notification expenses, ransom payments, and business interruption losses.

For small and mid-sized businesses, especially, a single cyberattack can be financially devastating without the right coverage in place. Insurance companies have expanded their cyber offerings significantly in recent years as corporate hacking has grown into a multi-billion-dollar criminal industry. If your business handles customer data of any kind, cyber liability insurance is worth a serious conversation with your provider.

How Do Big Companies Prevent Getting Hacked?

The good news is that cybersecurity experts have a well-established playbook for reducing cyber risks. Here's what large organizations do, and what the rest of us can learn from it:

• Require strong passwords across every system — No exceptions, no simple combinations, no reused credentials.
• Enforce multi-factor authentication — Even if a password is compromised, multi-factor authentication adds a critical second layer of protection.
• Train employees to recognize social engineering attacks — Most breaches involve a human element. Regular training dramatically reduces the risk.
• Keep software updated — Patching known vulnerabilities is one of the most effective and straightforward ways to stop hackers.
• Limit access by role — Not every employee needs access to everything. Restricting access reduces the damage any single compromised account can do.
• Monitor networks continuously — Catching an intrusion early limits the damage significantly.

How to Avoid Getting Hacked, and What You Can Do Right Now

Corporate hacking lessons apply directly to individuals and small businesses. Here's how to stop hackers from targeting you successfully:

Use Strong, Unique Passwords

Strong passwords are your first line of defense. Every account, whether that be email, banking, or social media, should have its own unique password that combines letters, numbers, and symbols. A password manager makes this manageable without having to memorize everything.

Enable Multi-Factor Authentication

Turn on multi-factor authentication everywhere it's available. A code sent to your phone via text message or generated by an authenticator app means a stolen password alone isn't enough to get someone in.

Watch Out for Phishing

Be skeptical of unexpected emails, links, and attachments, even ones that appear to come from familiar sources. If something feels off, don't click. Verify directly with the sender through a separate channel before taking any action.

Keep Your Devices and Software Updated

Updates exist for a reason. When manufacturers patch security vulnerabilities, those patches only protect you if you install them. Enable automatic updates wherever possible.

Secure Your Home Network

A secure connection at home is the foundation of everything else. Use a strong WiFi password, keep your router firmware updated, and consider a whole-home security solution that monitors threats across every connected device.

Take Cyber Protection Further with MaxxSouth

Understanding how corporate hacking works is the first step – but knowing is only half the battle. For comprehensive protection at home, MaxxSouth offers Brainiacs Cyber AI powered by Malwarebytes – an all-in-one identity theft and cyber protection solution that includes antivirus, VPN, dark web monitoring, credit monitoring, and up to $2 million in identity theft reimbursement. It's premium digital protection built for real life, without the premium price.

Pair that with whole-home WiFi security through SmartNet and fast, reliable internet from MaxxSouth Broadband, and you've got a layered approach to online security that covers your household from every angle – the same approach the world's best cybersecurity experts recommend for businesses of any size.