Protecting customer data is a strategy that businesses employ to safeguard sensitive data about their customers from cybercriminals or internal negligence. This could include password security and network security as well as data encryption. It’s a key element in creating a trust culture where customers feel comfortable in entrusting their data to your company.
Small businesses face unique issues in terms of protecting the privacy of their customers’ data. They can still take steps in order to safeguard the information of their customers and comply with the regulations without the resources that larger competitors do.
When a business gathers personal information, like credit card numbers or social security numbers, it should ensure that the data is safe from hackers and other cybercriminals who seek to take advantage of it. A lack of protection for consumer data could cause devastating damage to the company as well as its customers.
The most likely scenario is a data breach, where the information is exposed to hackers who might utilize it to commit identity theft and fraud. The victims could also be hit with financial losses and reputational damage.
Smaller businesses can lower the chance of being hacked by limiting who has access to customer information, and by regularly backing up the information. They can also require employees to keep laptops in a secure location and implement security measures, like the requirement of a token “smart card,” thumb print or another biometric, in addition to the use of a password to gain access to the information on their computer. They can also erase files that are no longer needed and often overwrite the previous ones with new ones.
