Customer data is one of the most important assets a business has in a digitally driven world. With so much customer data collected (from personal to payment) to enhance services and the customer experience of customers comes an enormous opportunity and responsibility to protect it from breaches, misuse and other forms of unlawful access.
Not effectively safeguarding customer data could risk causing the business to lose money, incur legal liability and ultimately damage its reputation over the long term. Implementing strong data protection practices is very important for building customer confidence and complying with rules and regulations governing the use of customer data.
1. Collect Only the Data You Need
Reducing the volume of customers’ data collected by your company will help to reduce risks associated with storing large amounts of sensitive data. To reduce this risk, only collect and retain data that is needed for business needs.
Some of the benefits to your company if you reduce your customer’s data are the following:
- Reducing potential loss in the event of a data breach.
- Easing the ability to comply with Data Privacy Regulations.
- Making your company’s data management simpler than before.
Make it a habit to periodically look at the types of data you are collecting and eliminate any unnecessary data field from any forms and databases.
2. Implement Strong Access Controls
Not every employee has a requirement to have access to all customer data, so establish a role-based access control (RBAC) method whereby users only have access to data necessary for fulfilling their job duties.
Some best practices would include:
- Using unique login credentials for every employee
- Using multiple forms of authentication (MFA)
- Reviewing and revising user access permissions periodically.
By limiting access, you significantly decrease the likelihood of an internal data leak or inadvertent disclosure.
3. Encrypt Sensitive Data
The customer’s information is encoded or encrypted so as to make it impossible to be read without the corresponding decryption key.
The two types of encryption to implement are the following:
- Encryption of data-at-rest: This protects data while it is stored on a server or database.
- Encryption of data-in-transit: This secures data as it is being transferred between systems or over the internet.
- Using strong encryption protocols will ensure that if the data is intercepted, the data will be useless.
4. Keep Systems and Software Updated
Poorly maintained software is one of a hacker’s most common sources of entry into their target systems. The routine application of updates or fixes can address many security holes before a criminal has a chance to exploit them.
Companies should:
Turn on automated software updates wherever viable; Patch operating systems and software promptly; Watch for and fix any critical security issues listed in the various security advisories available to the public.
A proactive update policy will enhance the company’s overall levels of security.
5. Train Employees on Data Security
Human errors often result in data breaches. Therefore, employees need to be educated on how to properly manage and safeguard the personal data of customers they interact with every day. An agency’s training initiatives regarding data protection should include but not necessarily be limited to the following:
- Phishing email identification
- Secure password creation and use
- Proper data handling and sharing
- Reporting suspicious behaviour.
Regular training sessions on these topics will help create an overall culture of security for the company.
6. Use Secure Data Storage and Backups
Customer data should be stored securely using strong security processes. In addition, businesses should use encrypted backups as a means to help avoid data loss caused by systems failing or ransomware attacks.
Main practices to secure data backups include:
- Automated back-ups done on a routine basis
- Backups stored at a safe location (either offsite or online)
- Regularly testing of backups
Reliable backups will provide businesses with the ability to continue operating without interruption and to restore data following an emergency.
7. Monitor and Audit Data Access
Ongoing surveillance is a means of identifying the irregular activity of a user or an unapproved access into the records of customers.
Companies should:
- Keep thorough records of access
- Conduct periodic security audits
- Make use of automated monitoring tools to identify irregularities
Detecting early allows you to identify a breach before it becomes an issue of concern.
8. Develop a Data Breach Response Plan
Even with all possible precautions in place, incidents are still likely to happen. An agency that responds quickly and effectively when a security incident occurs will have a defined response plan.
A well-defined security response plan will include the following items:
- Steps for Containing and Investigating a Security Incident
- Communication Procedures for Affected Customers
- Reporting Procedures to Regulatory Agencies
- Post Incident Analysis to Enhance Future Security
Demonstrating preparedness will help minimise damage and help demonstrate to customers and regulators that your company has acted professionally.
Conclusion
Businesses must take a proactive, holistic, and strategic approach toward protecting their customers’ sensitive data, especially as the threat situation of cyber-attacks continues to change rapidly. A commitment to strong data protection practices will help ensure your company is positioned for future growth and will be able to build customer confidence in your ability to protect their personal and financial information.
