Data breaches have become a common occurrence for organizations, leading to an increase in identity theft and other fraudulent activities that affect customers. However, companies that prioritize customer data security can build trust and maintain strong relationships with their customers. To achieve this, organizations must ensure compliance with regulations and invest in technologies that enhance security measures.
When it comes to protecting customer information, organizations should focus on securing four key types of data. The first is personally identifiable information (PII), which refers to information that can identify an individual by itself or when linked with other personal information. This includes details such as names, addresses, social security numbers, and email addresses.
The second type of data is personal information (PI), which directly or indirectly identifies a person or household. PI can consist of various data points associated with an individual’s identity and often overlaps with PII.
Sensitive personal information (SPI) is the third type of data that must be secured. Introduced under the California Privacy Rights Act (CPRA), SPI covers personal data that may not directly identify an individual but could potentially cause harm if made public. It offers protection for minors and their personal information as well.
The final type of data that organizations need to secure is nonpublic personal information (NPI), which is regulated by the Gramm-Leach-Bliley Act. NPI specifically applies to financial services institutions and includes information obtained directly from customers or through transactions. It does not include publicly available information.
To ensure the protection of customer data, organizations must adhere to policies and regulations put in place. The two most well-known data protection policies are the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). GDPR sets guidelines for businesses that collect and process personal information from individuals living in the European Union, regardless of where the websites are based. CCPA, on the other hand, is the strictest data privacy regulation in the United States and primarily focuses on protecting the rights of California-based consumers when it comes to the collection, use, storage, and sale of personal data.
To effectively protect customer data, organizations can implement several steps. First, they should only collect data that is necessary for conducting business with customers. This helps minimize the amount of data that needs to be protected. Additionally, limiting access to customer data to authorized individuals and implementing strong cybersecurity measures, such as two-factor authentication (2FA), can help prevent unauthorized access or breaches.
Having a robust data management strategy in place is crucial. Storing data in a centralized location ensures easier management and reduces the risk of data scattered across multiple areas. Organizations should also establish minimum security standards that they comply with, such as ISO 27001 or System and Organization Control 2 (SOC 2).
When it comes to technology, organizations should evaluate their existing internal safeguards before investing in additional security measures. Customer relationship management (CRM) tools can help centralize customer data and prevent it from being stored in multiple locations. Implementing 2FA can significantly reduce breaches associated with compromised passwords.
Beyond these internal safeguards, organizations need to consider encryption, integrated malware protection, and blockchain technologies to enhance customer data security. Encryption is a common method used to protect data, and organizations can choose from various encryption types depending on their specific needs. File-level encryption can protect data in transit and make it harder for hackers to access cloud-based software or resources.
Advanced Encryption Standard (AES)-256 is another encryption method that uses a 256-bit key to encrypt and decrypt data. It is highly regarded as a gold standard for block ciphers. Portable mode encryption is a type of file-level encryption that protects against breaches in case a USB or portable hard drive is lost or stolen.
Integrated malware protection, often referred to as antivirus protection, acts as an additional layer of security by detecting and blocking malicious software that could potentially steal data. Finally, blockchain technology offers a decentralized and secure way of storing data. It allows customers to take ownership of their data without relying on centralized authorities and can prevent unauthorized access or tampering.
Protecting customer data must be a top priority for organizations. By adhering to policies and regulations, implementing strong security measures, and leveraging technology, organizations can build trust with their customers and protect against data breaches and fraudulent activities.