How Can I Increase My Customers’ Data Security?
Gaps in data security lead to economic and reputational damage for a company. Therefore, it
requires clear rules to reduce the risks organizations
are exposed to
Moreover, the cost of a breach keeps rising. In 2023, the global average reached US$ 4.45 million, according to research carried out by IBM. Since then, the curve has not reversed. Therefore, customer data security is no longer an IT-only subject. Today it sits on the board and executive agenda.
In practice, improving customer privacy goes well beyond cutting breach costs. The same applies to potential fines. Brazil’s General Data Protection Law (LGPD) has been in force since 2020 and sets the rules for processing. Moreover, the ANPD already inspects and applies sanctions. In case of non-compliance, fines can reach R$ 50 million per infraction.
Therefore, concerns in this area also cover reputation. They shape how customers see the corporation. In addition, they affect the ability to win new business. For publicly traded companies, this can even influence share prices.
But what is the consequence for customers?
The impact of data privacy on customers
Likewise, guaranteeing privacy became a survival issue for companies. That holds true in an increasingly competitive world. In this scenario, companies became priority targets of cyberattacks. The damage shows up now, with losses, fines, and urgent fixes. Moreover, it returns later, above all through reputation.
As a result, data security is fundamental for customers. That applies from both the protection and the privacy angle. After all, this information fuels fraud, extortion, and social engineering. Currently, in fact, leaked data feeds far more convincing phishing campaigns. Therefore, the damage does not end on the day of the incident.
Meanwhile, the most common types of cyberattacks include:
In short, malware – Malicious software able to steal data, encrypt files, or cause other damage.
Ransomware as a service – Groups rent the malware to affiliates. Moreover, they practice double extortion: data is encrypted and also copied, with a threat of publication.
After all, vulnerabilities and the supply chain – Weaknesses in your own systems or in a supplier’s. In that case, one compromised link reaches the entire customer base.
In addition, identity theft – Lost passwords, weak MFA, and stolen session cookies. With a valid token, the criminal enters the cloud without any password.
Tips to guarantee data security
1) Know which data you are collecting
In practice, you can only protect what the company knows about. Therefore, map which data exists and where it lives. At this point, it helps to understand the difference between them:
– Public data is openly disclosed, such as announcements and statements;
– Internal data covers the operation, such as budgets, projects, processes, and strategies;
– Confidential data refers to personal, health, and financial records, among others;
– Restricted data means passwords, API keys, and intellectual property.
Therefore, the more sensitive the data, the greater the care required. Moreover, this map supports the processing records that privacy law demands.
2. Collect only what is necessary and limit access
The best way to reduce risk is to collect only what the business truly needs. The list includes finance and service aspects, as well as marketing and retention.
Likewise, each area should access only what it needs to work. The same logic applies across the hierarchy. Specific tools, known as IAM, manage permissions. Moreover, it pays to review privileged access frequently.
3. Run constant audits
As a result, periodically analyze which data is collected and how it is classified. This work can include process reviews. In addition, it covers employee access and supplier access alike.
4. Encryption is the rule
Meanwhile, the business must encrypt data at rest and in transit. If that job is done well, leaked data loses value. This holds true even when a breach occurs. Therefore, keep the keys outside the same environment.
5. Invest in the right technologies
In short, email filters cut the phishing that reaches the inbox. Meanwhile, updated EDR and antimalware widen detection on endpoints. Moreover, adopt phishing-resistant MFA, with FIDO2 keys or passkeys. After all, SMS codes do not resist current attack kits.
6. Periodic backup
Ransomware bets on the difficulty of recovering hijacked data. Therefore, keep immutable backups, isolated and tested for restore. However, with double extortion, backups solve downtime, not the leak.
7. Update all software
After all, vendors release fixes frequently. Many of them address vulnerabilities already under exploitation. Therefore, prioritize what is exposed to the internet and keep everything on supported versions.
8. Train your team
Moreover, the best filter fails if people are not trained. However advanced the technology, the company must build the team’s security skills.
In practice, the human factor remains present and needs to shrink. That involves good email habits, unique passwords, and phishing-resistant MFA. In addition, training has to cover voice and video deepfakes in approval requests. After all, scams no longer arrive full of obvious mistakes.
Therefore, training should include incident response. That covers the deadline for notifying regulators and data subjects.
9. Define a transparent data policy
All customers, employees, and partners need clarity. They should know how the corporation handles and protects data. This policy must state the purposes of use, as well as how data is collected, stored, and protected.
Likewise, it is worth stressing: if there are updates, inform customers. Moreover, describe how to exercise the rights that privacy law grants.
10. Test constantly
As a result, the company should run security tests on a regular basis. The goal is to find and fix vulnerabilities in its own systems and in third-party ones. Moreover, test the response plan as well, not only the technology.
11. A specialized IT team
Meanwhile, the internal team should work alongside specialized companies. Together, they build a structure able to sustain data security. The work involves people, systems, and processes. Moreover, this team audits practices and keeps them running.
In short, protecting data is a process in constant transformation. That happens because attack patterns change and systems evolve. With corporations depending more on data, you have to act preventively. Therefore, the goal is to protect the business and the customers’ privacy alike.