Marketers believe personalization is the way to go for higher revenues. For example, tailoring product suggestions based on a customer’s purchase history can increase sales. But they need lots of data to pull it off. Businesses get caught up in a circle of gathering even more customer information to tailor and fine-tune future customer experiences.
But the more data you have, the bigger the risk you take. Cybercriminals know that even small home-based businesses may have extensive archives of consumer information. Therefore, a company of every size can become an attractive target for hackers.
The Clearcut Dangers of Poor Consumer Data Protection
Data protection laws are tightening radically around the globe, and for good reason. A data breach can expose customers in several ways, endangering a company’s future.
Some argue that data leaks have become commonplace, and customers don’t care much. Don’t fall into the trap of thinking a data breach is a minor nuisance that can be PR-ed and marketing campaigned away. Small businesses may have to close down after a data breach.
Compromised PII (personally identifiable information) can lead to identity theft, and customers may suffer from financial fraud. Businesses may also face lawsuits and fines for data protection compliance violations. Data breaches can severely damage a business’s reputation and wreck customer trust.
On the other hand, good data protection measures hold clear-cut benefits. If you can deliver good data care, it can enhance your brand’s reputation and increase profits.
6 Steps to Better Client Data Protection in Your Office
It can be hard to change office policies in mid-stream. Still, you can take a few strategic steps that will place you on an easier path toward better data protection.
1. First, Secure What You Do
There’s no need to bring the office to a complete halt to implement a new data security strategy. Work with what you have to get started.
- Set up secure Wi-Fi:Â Make sure your Wi-Fi router’s firmware is up to date and protected with a strong password. Install a VPN on the router to secure all your IoT devices. Consider implementing a separate network for guests.
- Roll out a VPN for multiple devices: Secure all devices that connect to the internet with a VPN. Use a VPN app to protect employees’ mobile devices and home networks, even if they only occasionally work from home. A VPN encrypts their internet connection and scrambles the data that gets passed along so snoopers won’t get a chance to read it.
2. Realign Your Data to Serve Your Business Strategy
The next step is to take a good look at what data you’ve accumulated and how you store and use it. For example, while you need customer data to analyze their behavior, you should evaluate how well the process serves your business needs.
- Understand the implications: Familiarize yourself with the applicable data laws and industry-specific regulations. The United States does not have a comprehensive law regulating consumer data, but there are regulations for specific industries or geographic areas. For instance, the healthcare industry must comply with HIPAA regulations. However, your European clients are protected by the GDPR (General Data Protection Regulation). The GDPR goes beyond US definitions of sensitive information and carries massive penalties for data mishandling and breaches.
- Keep only essential data: Delete what you don’t need. Make it known that you only keep essential data. Your customers will appreciate it, and it might make you a less attractive target for hackers.
- Implement access controls: Ensure that employees have access only to the data they need for their job functions. Restrict access to data based on specific roles. For example, a financial officer will need a different level of access to consumer information than the marketing team.
- No more shared passwords: Use a password manager to create strong passwords and make the password easily accessible to vetted employees. When each user has a unique password, tracking where your data goes becomes easier.
- Keep a data access log: Record who is viewing, changing, downloading, or transferring data.
3. Revamp Data Storage Basics
Encrypted file storage should be a given. Only entrust your data to encrypted file-sharing platforms that protect data in transit and at rest.
Also, secure each device that holds data, e.g., hard drives, laptops and mobiles, with access controls like PINs. Keep devices (and physical hard copies of your data) locked away when unused.
4. Harden Your IT Setup
These IT and network basics are easy to implement and use. In concert with your VPN for multiple devices, form the first line of defense against data theft and cyberattacks:
- Firewalls monitor your network’s incoming and outgoing traffic to prevent malware from moving into your network.
- Antivirus software detects and targets viruses, rootkits, trojan horses, and malicious code that attempts to infiltrate devices.
- Update software regularly.
- Make data backups. Backups can’t protect data from intrusions but can help you recover after a breach. Store encrypted backup copies both on-site and off-site.
- Do regular audits to identify and address weaknesses in your security.
- Intrusion detection and prevention systems (IDS/IPS) monitor network traffic. They can flag suspicious activity and alert system administrators if something goes wrong.
5. Get Your Employees on Board
No matter how much money you spend on external cybersecurity measures, you will only succeed if your team stays educated. Some of the most devastating data breaches have been caused by social engineering attacks that could have been avoided. Train employees to identify phishing emails that may trick them into giving access to company networks and provide them with the security tools they need.
6. Scale up to More Advanced Security Tools
The previous steps can be executed by companies of any size, even one-person shows. But as your business grows, you should invest in more specialized cybersecurity tools.
- User and Entity Behavior Analytics (UEBA) tools monitor user activity. They can spot unusual or potentially risky behavior on organization workstations.
- Data Loss Prevention (DLP) tools monitor activities on networks, servers, and employee workstations and prevent data from being modified, copied, moved, or erased.
- Security Information and Event Management (SIEM) solutions track alerts about data security events and flag important records for further investigation.
- Network Security and Vulnerability Testing include audits and penetration tests of your security to identify vulnerabilities in the system.
The Balance Between the Value of Data and the Cost of Securing It
Businesses require data to improve their products and services for clients. However, storing personally identifiable information can make businesses vulnerable to cybercriminals. Companies should collect and retain only the data necessary to meet their business needs because once they have the data, they have a responsibility to protect it. Following the previous six steps, you can turn this big responsibility into an asset. Well-protected customer data will improve brand reputation and build consumer trust.
James is the head of marketing at Tamoco
