Protecting Customer Data
The world is awash in data. And business owners must protect their customers.
Anyone who has been paying attention over the last couple of decades knows that data is all around us. We can’t see it. We can’t touch it. But it is everywhere, informing how we work, shop, explore and entertain ourselves. Data is also extremely valuable. Advertisers covet our data. And bad actors often weaponize it for identity theft and illicit financial schemes.
It is imperative that business leaders protect their customers’ data. Not only is it the ethical thing to do, but it is also pragmatic. The way businesses use and protect customer data is rightly coming under increasing scrutiny. Additionally, businesses that mismanage customer data can experience significant consequences to their brand and reputation. With such high stakes, it’s important to be knowledgeable on best practices for data protection. Here are some tips to get you started.
Conduct an Audit
The first step toward a comprehensive and proactive approach to protecting your customer base’s data is to gain a full understanding of the various types of data your business holds. Is it social security numbers? Credit card information? Online account passwords? Real estate and title insurance professionals often deal with large amounts of sensitive data. Conduct an audit to ensure that you have a full accounting for everything you and your employees hold.
Understand the Legal Basics
Data protection laws vary depending on where your business is and the industry in which you work. It is wise to invest the time and resources to gain a full understanding of the basics as required by law and as they apply to your specific enterprise. For instance, most people know about the Health Insurance Portability and Accountability Act (HIPAA), the 1996 federal law that stipulates that healthcare insurance industries must protect customer health information from fraud and theft. However, other state-level laws apply to all industries. Become apprised of what is required of you by law when designing data protection policies for your business. There are ample resources online that can serve as an effective primer.
It’s all well and good if you want to take a proactive and fastidious approach to your customers’ data, but if you have employees, you are going to need their buy-in and compliance as well. If a chain is only as strong as its weakest link, then a business can only take a comprehensive approach to data security if it treats it as an organizational priority rather than a siloed effort.
If Possible, Throw it Out
Only keep data you need. Schedule routine reviews of the customer data you are holding and have a process in place to decide when you can safely dispose of it. Considering that you have an ethical and often legal obligation to safeguard customer data, this can be a great strategy for limiting your company’s exposure.
Do What You Can
Protecting customer data can be an expensive and time-consuming effort. In fact, major corporations often spend millions of dollars to secure this information. You may not have access to such resources. However, there are still practical steps you can take to operate a more data-secure shop.
Consider, for instance, limiting employee access to data, only giving them as much information as they need to effectively do their jobs. Be sure to also have a process in place for properly destroying and disposing of both physical and cyber versions of customer data. Lastly, you could even consider looking into a designated server for your most sensitive data. While using a shared server might be more economical, it carries a security risk.
Go the Extra Mile
We know that running a title agency is no easy matter. Time is always tight, resources thin, and sometimes it can feel as if taking on a new initiative will be the straw that breaks the proverbial camel’s back. Still, it’s important to remember that customers are worth the effort. As title professionals, our customers entrust us with some of their most sensitive data, and we must do our best to protect it.
Tags: #becybersmart, fraud, information security