Ten Key Principles of Customer Data Protection
As the world of technology becomes more interconnected, customer data security is vital to building trust with customers. Consumers expect companies to safeguard and secure their personal data and businesses that excel in this regard have a competitive advantage over those that do not. This article examines 10 important principles that all businesses should know and implement to protect customer data.
The most basic form of customer data is personal information, which refers to any information that could be used to identify a person. This includes names, addresses and phone numbers. But, there are more sensitive kinds of information that can lead to serious consequences if it is in the wrong hands, such as the Social Security number or credit card number. SPI also includes racial as well as ethnic origin, sexual preference and other sensitive personal information.
SPI could be used for identity theft. This is a serious risk to the personal and financial well-being of customers. Hackers can make use of this information to get credit cards or loans in the name of the victim. This can have devastating effects.
To reduce the risk that data breaches could be a possibility, companies should limit the amount of SPI they collect, and only use it for legitimate purposes. They should also employ encryption on their servers and while in transit to ensure that data is inaccessible to hackers. They should also implement two-factor authentication and tools for managing passwords to minimize the risk of data breaches triggered by compromised passwords.