Protection of customer data is the strategy businesses use to safeguard sensitive consumer data safe from cybercriminals and internal negligence. This could include security of networks such as password protection, security for passwords, and encryption procedures for data. It’s a key element in creating a trust culture in which consumers feel confident about entrusting their personal data to your company.
Small businesses face unique challenges in securing customer data. But they can still take steps to protect the privacy of their customers’ data and comply with regulations, even without the budgets of their larger competitors.
When a business collects personal data, such as credit card or social security numbers it must protect the information from hackers and other cybercriminals that want to exploit it. The consequences of poor protection of consumer data can be devastating to both the business and its clients.
The most dangerous scenario is a data breach, where the data is accessed by hackers who might utilize it to commit identity fraud and theft. Additionally, the victim may be impacted financially and damage to their reputation.
Smaller businesses can lessen the risk of data breaches if they restrict who has access to customer data and regularly back up the information. They may also require that laptops be stored in a secure area and implement security features, such as requiring an ID card “smartcard” or thumb print or other biometrics in conjunction with a passcode, in order to access information on their computers. They can also delete files that are no longer required and regularly replace the old ones with new versions.