Data security is essential in establishing trust with consumers as the world of information becomes increasingly interconnected. Customers expect their companies to safeguard and secure their personal information and those who excel at this have a competitive advantage over those who do not. This article examines 10 important principles that all businesses should know and implement to ensure the security of customer data.
Personal information is the most basic kind of customer data. It includes any information that can be used to directly identify an individual. This includes names and telephone numbers. There are even more sensitive data types that could have serious consequences when they fall into wrong hands. For instance the Social Security Number or credit card number. Sensitive personal information (SPI) also includes ethnic or racial background or sexual orientation, and other sensitive information.
SPI is a tool that can be used to commit identity theft, which is an extremely risk to customers’ financial and personal health. Hackers could use this information to apply for credit or loans in the victim’s own name. This can result in devastating consequences.
To reduce the chance of data breaches, companies should limit the amount of SPI they collect and only make use of it for legitimate purposes. They should also use encryption both on their servers and in transit to Data Room Software ensure that data is not accessible to hackers. In addition, they should be equipped with password management tools as well as two-factor authentication to reduce the chance of data breaches that are triggered by compromised passwords.