A security breach is defined as the unauthorized release of unencrypted records containing personal information like names and initials. Breaches can damage a company's reputation through bad publicity, loss of customers, lawsuits, and increased security costs. To protect sensitive data, companies should securely dispose of documents, use document destruction services, assign access levels, monitor security measures, and conduct background checks on employees. Individuals can reduce risks of identity theft by changing passwords frequently, paying with cash when possible, checking credit reports, and shredding important documents.