Data protection is crucial to building consumer trust as the digital world becomes increasingly interconnected. Consumers expect companies to safeguard and secure their personal information and those who excel in this regard have a competitive advantage over those that www.dataroommanage.blog/customer-data-protection-why-is-it-important/ don’t. This article examines 10 important guidelines that every business must learn and implement to safeguard customer data.
Personal information is the most basic kind of customer information. It includes any information that can be used to identify an individual. This includes names or addresses, phone numbers, addresses, and more. There are other sensitive data types that could cause serious harm if they fall into the wrong hands. For instance, a Social Security Number or credit card number. Sensitive personal data (SPI) also includes racial or ethnic background or sexual orientation, and more.
SPI can be used to commit identity theft, which poses an extremely risk to the customers’ personal and financial health. When hackers obtain this type of data they could use it to apply for credit cards or loans under the victim’s name and leave them with devastating effects.
To reduce the risk of data breaches, companies should restrict the amount of SPI they collect and only make use of it for legitimate purposes. They should also implement encryption on their servers and during transit to ensure that data is unreadable to hackers. They should also implement two-factor authentication and tools for managing passwords to minimize the chance of data breaches that are caused by compromised passwords.
