Businesses have a responsibility to protect their customers’ data. And with the increasing amount of information being created, captured, copied, and consumed, customers are taking their data more seriously than ever before.
Customer data is basically any information that you collect from those you do business with. It includes contact information, phone numbers, credit card information, and more.
Like any information stored online, customer data can be lost, stolen, and taken advantage of by bad actors. Data security is all about protecting data from external actors and malicious insiders. But it all starts with data privacy – i.e., controlling how customer data is collected, shared, and used.
It’s no secret that cybersecurity is a major worldwide issue. According to the Cybersecurity & Infrastructure Security Agency (CISA), 1 in 3 homes with computers are infected with malicious software, 65% of Americans who went online received at least one online scam offer, consumers worldwide have lost $358 and 21 hours on average per year dealing with online crime, and 47% of American adults have had their personal information exposed to cyber criminals.
This is why governments around the world have passed data privacy laws such as the General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), and the Health Insurance Portability and Accountability Act (HIPAA).
As a business, it’s your job to ensure you comply with these regulations and keep your customers’ data safe and protected at all times.
Here are a few tips on how to do that:
1. Create a data security team
Start by designating a data security team to lead all your data security efforts. The team can include data specialists, cybersecurity analysts, security managers, a chief information officer (CIO), and others. If you don’t have enough resources to hire a whole team, start with a single data security specialist.
2. Understand what data you are collecting
Know exactly what type of data you are collecting, how sensitive it is, and where it will be stored so you can properly protect it. Conduct regular data audits to identify data and categorize it by use case, sensitivity, and accessibility. From there, you can further classify it as public data, internal data, confidential data, and restricted data.
3. Only collect essential information
As you audit your customer data, make sure you aren’t collecting any that is unnecessary. For example, you shouldn’t store a customer’s credit card information or personal contact information once an order is placed. Keep only what’s essential.
4. Create a transparent data usage and privacy policy
Your company should have a thorough data usage and privacy policy. It should specify who has access to customer data, how it will be used, and where it will be stored. Publish the policy on your website for full transparency.
5. Protect customer data against scams
Scammers have many ways of hacking into a business’s IT system: phishing scams, social engineering scams, ransomware, etc. To protect your customers’ data against these tactics, put proper protections in place. These can include email spam filters, antivirus and anti-malware software, end-to-end encryption, virtual private networks (VPNs), multi-factor authentication (MFA), and more.
6. Regularly update business software
Software developers often release updates to their products to fix bugs and minimize vulnerabilities to cyber threats. So, regularly update your business software to the latest versions and with the latest patches.
7. Train employees and limit access to customer data
When it comes to data security, your company is only as strong as its weakest link. So, it’s vital that you train all employees in the best cybersecurity practices, such as using strong passwords, avoiding phishing scams, and logging out of accounts at the end of the workday. You should also limit data access to those who need it. By granting access on a need-to-know basis, you minimize unnecessary exposure to cyber threats.
The bottom line
At the end of the day, cybersecurity is something you must invest in early as a company. It may require some upfront and ongoing costs in terms of software, personnel, and training, but it’s well worth it. A single data breach could ruin your reputation with customers and put your business under control – don’t risk it.
