A solid business-customer relationship is built upon trust. Your customers expect you to keep sensitive information secure. Failure to do so can ruin your reputation.
Why does data privacy matter, and how can you responsibly handle your customers’ information?
What regulations apply to you?
Where you do business affects your approach to customer data management. Different regions have different regulations, so you must know which ones apply to you. The United States doesn’t have a comprehensive federal law. Instead, various industries and states have their own set of regulations that are overseen by their agency, such as:
- Health Insurance Portability and Accountability Act (HIPAA): Protects personal health information
- Gramm-Leach-Bliley Act (GLBA): Protects consumer financial information
- The Privacy Act of 1974: Protects information collected by the federal government
Even if you are not required by law to have a comprehensive privacy policy, customers deserve to know why you are collecting their data and how you will use, store and protect it. They should also be able to access, modify or delete their information.
Implementing strong security measures is also crucial in customer data management. To protect sensitive information, you will want to invest in strong security practices, such as:
- Using encryption for sensitive data
- Require customers and employees to use strong passwords
- Implement multi-factor authentication for accessing data
- Regularly updating and patching software against vulnerabilities
Your employees are your first line of defense against data breaches. They are also most likely to be your first point of failure. Even the best security systems can fail due to human error. Properly training your staff to recognize and report phishing attempts or suspicious activity can help prevent mistakes.
With all of this said, breaches can still happen even with strong security measures. Quickly and effectively handling security breaches can help to preserve the trust your customers have placed in you. Working with a legal professional can help ensure you are a responsible steward of your customers’ data.