The Real Top 7 Causes of Data Loss and How to Combat Them

What causes data loss?

The top causes of data loss for today’s businesses are human error, power outages, hardware failure, malware and other forms of cyberattacks. Day to day, the most common reason why businesses lose data is that files are accidentally deleted. However, threats like ransomware and server failure tend to cause the most damage.

In this post, we analyze the top data loss causes that threaten today’s business, including:

1. Human error
2. Power failure and natural disasters
3. Hardware failure
4. Ransomware and other malware
5. Software failure
6. Migration errors
7. Malicious deletion

How data loss hurts business

At a time when the cost of data loss exceeds $75 billion a year in downtime alone for small companies, it’s never been more important to protect your data. But you can’t obtain true protection without first understanding the threats.

Roughly 1 out of 5 businesses experience more than 22 data-loss incidents every year, according to a report highlighted by PC World. The reasons are numerous: data goes missing, gets destroyed and gets stolen. But let’s take a closer look at what causes data loss and how to prevent it.

1) Human error

Human error is one of the most common causes of data loss today.  At larger organizations, data is accidentally deleted on a near-daily basis. This can include deleted emails, spreadsheets, SaaS data loss or even entire folders that are inadvertently dragged into the Recycle Bin.

Sometimes employees are immediately aware of their mistakes. But sometimes they don’t realize it until days or weeks later. In either case, that data is often gone forever unless you have a dependable backup system in place.

Roughly 75% of data loss is caused by human error,  to the IT Policy Compliance Group. Such errors also contribute to , researchers uncovered in a 2025 report.

Keep in mind, data loss can be caused by numerous types of mistakes beyond accidental deletion, such as misconfigured servers, infrastructure mismanagement and deception from social engineering attacks like phishing emails.

How to prevent data loss from human error:

• For faster recoveries, with fewer hiccups, choose a data backup system that allows you to quickly recover individual files and folders, in addition to larger datasets, from a recovery point.
• Smart backup software can help to identify lost data. Backup solutions like Datto SIRIS, for example, feature a web-based interface called Backup Insights, which makes it easy to quickly identify files that have been modified, created or deleted between any two backup points. Files can be rapidly recovered even when the file names and the deletion dates are unknown. (Request Datto SIRIS 5 pricing here.)
• Limit user access to only the files and folders they need. This can reduce the risk of accidental deletion in unauthorized folders. Plus, it can limit the spread of malware across a network, as we discuss further below.

2) Data loss from power failure and natural disasters

Power outages, surges and other electrical fluctuations are among the leading causes of impactful data loss, especially when they affect data centers, according to Uptime Institute’s 2025 Outage Analysis.

Power failure is often caused by severe weather, and a changing climate could make things a lot worse in the years ahead.

Consider this …

• Several of the worst California wildfires in history occurred within the last few years. (Reuters)
• Some of the most extreme Atlantic hurricane seasons in U.S. history have occurred within the last 15 years. The 2020 season was the most active on record. (Washington Post)
• Tornadoes, which once rarely occurred outside the Midwest, are  on the East Coast, hitting places like New York City and Massachusetts.
• Rising global temperatures will not only cause more intense heat waves, but also more extreme snowstorms in certain parts of the U.S., due to a weaker, less stable jet stream, .

But let’s take climate change out of the picture for a minute. Even then, natural disasters remain one of the top causes of data loss for businesses. Fire and flooding are especially common at office buildings around the world.

40 to 60% of small businesses never reopen their doors after a disaster, according to FEMA – so the stakes are high.

Natural disasters clearly pose a safety risk to your staff and your office structures. But also, they pose a major risk to IT infrastructure. If your servers are flooded, destroyed by fire or unexpectedly shut off by a power outage, your business-critical data could be destroyed. And when you have no other backups available, your business may not be able to recover.

How to prevent data loss from power failure and natural disaster:

• Make sure your data is backed up to the cloud, in addition to your on-site systems. This ensures that your data can always be recovered, even if your on-site backups can’t.
• Protect your on-site infrastructure with the latest fire suppression and flood prevention. Even flood sensors, which alert you to the presence of water in your server room, can greatly reduce the impact of a flooding event.
• Limit downtime even further by deploying a BCDR platform that lets you virtualize your data in the cloud. Datto’s Instant Virtualization capabilities, for example, let you boot your backup as a virtual machine in seconds, from anywhere. This gives you the quickest access to your data, as well as the applications that run your business, even if your on-site infrastructure has been destroyed.
• Even a brief power outage can cause a lack of access to data and costly downtime. You can defend against this common scenario by installing backup generators on the premises.

You’ll never be able to stop Mother Nature. But with the right preparation, you can ensure your data survives even the worst natural disasters.

3) Data loss from hardware failure

When technology breaks, your data is put at risk. Hardware damage and system malfunction are among the top causes of data loss. It happens every day at businesses of all sizes, all over the globe. At best, your tech fails and the data in transit is lost forever. At worst, entire drives of data stop working.

Numerous kinds of IT malfunction can cause trouble for your data. Here are just a few:

• Hard drive failure
• Operating system crashes
• Software errors and crashes (more on this below)
• Network hardware failure
• Physical damage to hardware

Let’s focus on the hard drive failure for a minute. After all, your hard drives are where your data lives. So when the drive fails, your critical files can be corrupted and unrecoverable. The problem is: all hard drives have a shelf life. They all fail eventually. Like all mechanical parts, the spinning disks and moving parts inside a traditional hard drive eventually slow down or break.

One study found that as much as 50% of hard drives fail every five years. Factor in the risks of network hardware failure and other damage, and you’ve got a wide array of potential data loss accidents just waiting to happen, any day of the week.

How to prevent data loss from hardware failure:

• If you can’t afford to lose any data, then deploy a BCDR solution that allows for a more frequent backup schedule. This will allow you to set an aggressive Recovery Point Objective (RPO), so that your data loss after a hardware malfunction is minimal.
• Datto uses Inverse Chain Technology, which allows for backups up to every 5 minutes, while also eliminating the most commonly occurring problems in traditional backup chains.
• Be aware of your hardware lifespan. Set schedules for upgrading various components every few years (based on manufacturer recommendations) to prevent unexpected failures.

4) Data loss from ransomware, viruses and other malware

Malware is one of the most common causes of data loss – and since these threats are constantly evolving, businesses need to deploy every safeguard possible.

Every day, your anti-malware systems are blocking malicious viruses, bad websites, suspicious attachments, bad IP addresses, hijackers, worms, adware and more. But tomorrow, those threats will be back. And there will be new ones too: new strains of malware that your anti-virus systems don’t even know about.

Consider ransomware – a threat that wasn’t even on most companies’ radar just a decade ago. Ransomware has quickly become one of the biggest data killers today, costing small businesses billions of dollars a year in downtime alone. On average, roughly 10 attacks are attempted against businesses every second of the day. When successful, these attacks lock businesses out of their data and bring operations to a screeching halt.

But while ransomware is getting all the attention these days, other forms of malware remain just as dangerous.

• Fileless attacks (which leverage legitimate functions within software to launch an attack, rather than relying on file downloads) increased by 1,400% in 2022, according to research by Aqua Nautilus.
• Mobile malware has increased by 52% in recent years, infecting data on the handheld devices that are increasingly used on business networks.
• In one survey conducted by a leading data backup technology provider, 29% of respondents said their top causes of data loss were malware and viruses.

Not all malware targets your data with the same ferocity as ransomware. But all it takes is one virus to compromise some of your business-critical files or create instability in your software and operating systems, leading to catastrophic data loss.

How to prevent data loss from ransomware, viruses and other malware:

• Use business-grade anti-virus and anti-malware protection and make sure it updates automatically, every day.
• Consider BCDR technology with built-in malware protection. For example, Datto’s backup systems automatically detect the signs of a ransomware infection, quickly alerting administrators to roll back to a clean recovery point. Protection like this can vastly reduce the scale and spread of a ransomware attack.

5) Data loss from software failure

Globally, software malfunction consistently ranks among the top 5 causes of business downtime and data loss, according to the by LogicMonitor.

When software fails, users lose any unsaved work, resulting in significant productivity losses. But that’s only the beginning. Similar to hardware failure, a sudden application crash can also cause large swaths of data to become corrupted and unretrievable. That loss alone can be extremely costly (especially if there’s no backup). But in some cases, the software will need to be completely reinstalled, hampering productivity even further.

One of the worst aspects of software failure is its unpredictability. You don’t know when it’s going to happen, and afterward it may not be clear why it happened. However, there are some steps you can take to prevent data loss when it occurs:

How to prevent data loss from software failure:

• Patch your software and O/S frequently by installing the latest updates as soon as they become available. This can greatly reduce the bugs and system errors that lead to data loss.
• Make sure your data backups protect all your application data. If your applications store data locally on unprotected endpoint machines or outside the network, then this is a recipe for disaster if software failure occurs.
• Only use software from trusted developers. If you’re using custom applications that were developed in-house or by third parties, and the software is constantly crashing, then it’s time to reevaluate your options. Stick to software from established, well-known developers, unless your needs absolutely warrant a custom deployment.
• Be careful with integrations. One of the most common causes of data loss from software failure is faulty integrations. Before adding third-party tools or leveraging API capabilities, make sure the software is safe to integrate.

6) Data loss from migration errors

This one often falls under the category of human error, but not always. Regardless of the cause, a lot can go wrong when large amounts of data are being moved and updated. And when those errors occur, data is often lost.

Most commonly, data is overwritten. The reason for this can be as simple as misnaming a destination folder (which is why migration problems are typically caused by human error). Other times, it may not be so clear what caused the problem or where it went. Botched migrations can destroy data in a number of ways, including corruption from faulty configurations and unexplained deletions.

Why migrate in the first place? Often this is necessary when deploying new software or hardware, or when you’re implementing new folder hierarchy (such as for security, efficiency or other reasons). System upgrades, data consolidations and application integrations are also common reasons for migration.

So, how do you prevent data loss from migration errors? With a lot of the same safeguards that we’ve already covered above …

How to prevent data loss from migration errors:

• Always back up your data before migration, especially if you’ll be moving large amounts of data. This should be a new, one-time backup that is outside of your regular backup schedule.
• Ask before you integrate. If you’re integrating a new application or tool, make sure the integration is safe before you touch any data. For example, if you’re adding a new third-party application, confirm whether it’s fully compatible with your existing systems or has known issues.
• Review configurations carefully. Remember that migration problems are commonly caused by mistakes during the configuration stage. Review all settings carefully and if you’re not sure about something, reach out to the vendor or another IT professional.

7) Data loss from malicious deletion

Nobody likes to believe their coworkers would purposefully sabotage company data, but it happens surprisingly often. In a survey conducted by Aberdeen Group, 7% of companies reported they had lost data due to malicious deletion by their own employees or contracts.

These incidents are sometimes shocking enough to make headlines, as was the case in 2016 when an IT administrator was charged with a felony for intentionally deleting 615 backup files before leaving his job at a software firm. More recently, a Singapore man was fined S$5,000 for maliciously deleting files from his employer’s Google Drive account. The reason he did it? Because he’d been fired.

Employee firings are often the impetus for malicious file deletion. Regardless of where the blame lay for the termination, if an employee believes they have been slighted by the company, they may try to get payback in the last moments before their exit.

That’s where termination policies can play an important role in preventing this type of data loss …

How to prevent data loss from malicious deletion:

• Practice the rule of “least privilege.” This is the idea that each user should only have access to the files/folders they need to perform their jobs. So if any malicious deletion occurs, it will be limited to those folders.
• Coordinate terminations with IT. Don’t give terminated employees the time to commit misconduct before they exit the company. Terminated employees should immediately lose access to data and systems, ideally at the same time that their termination is announced.
• Use stronger backup technology to detect when sudden large-scale deletions or file changes are occurring, such as with Datto’s Rapid Rollback. This allows you to quickly restore only the affected files, without having to reimage the entire machine.

Quiz: Which of these is not a potential cause of data loss?

Here’s a pop quiz to test what you’ve learned: Which of these is not a potential cause of data loss?

1. Server failure
2. Network firewall
3. Database migration
4. Utility outage

The answer is: network firewall.

Explanation: A firewall helps to block malicious traffic on a network, but it is typically not a direct cause of data loss. A variety of network problems can and do lead to data being lost. For example, a network outage might cause employees to lose unsaved work. Also, a lack of network security will allow external threats to infiltrate a network and compromise company data. The firewall helps to prevent such threats and is therefore not a common cause of lost data.

Data loss prevention

The most important strategy for preventing data loss is routinely backing up your data. This ensures that your business has a failsafe and can recover any files that have been lost, regardless of the cause. Strong access control policies and employee training can also help to significantly minimize data loss from human error and cybersecurity incidents. For larger businesses, data loss prevention (DLP) software can also be a valuable tool for preventing data breaches and exfiltration.

Frequently Asked Questions

1. What is the most common cause of data loss?

Human error is the most common cause of data loss. Common examples include accidental file deletion, overwriting data or security lapses, such as users responding to phishing or spam emails that contain malware like ransomware.

2. What are the four common causes of data breaches?

Four common causes of data breaches are compromised credentials, phishing attacks, IT failure and human error, according to a 2024 report by IBM.

3. What’s the difference between data loss and data breaches?

Data loss refers to the destruction or deletion of files, whereas data breaches are incidents in which private or sensitive company data has been accessed or shared with unauthorized parties.

Conclusion

Today’s top causes of data loss—like human error and hardware failure—are massively disruptive and costly for businesses. But they are also preventable. Companies must implement a robust business continuity and disaster recovery strategy, supported by dependable data backup technology, to ensure they can rapidly restore their files and systems after any data-loss event.

Protect your business from the top causes of data loss

Get more information on how your business can prevent data loss with smarter backup and disaster recovery solutions from Datto, as well as other cybersecurity solutions that safeguard your network. Schedule a call with one of our data-protection specialists at Invenio IT or contact us by calling (646) 395-1170 or by emailing success@invenioIT.com.