Why You Need to Secure Your Business Data

Avoid the Hall of Shame

Data breaches can mean significant costs for businesses — both in money and damage to their reputations. It’s important to make data security a priority on a daily basis.

Financial Risks

Companies are collecting and analyzing more customer data than ever before. This means a higher risk for all sizes of businesses. The stakes are getting higher as companies face scrutiny by regulators under the European Union’s General Data Protection Regulation (GDPR). As reported in Marketing Dive, Google has been fined 50 million euros by French data protection authority CNIL under the GDPR:

The news suggests that it will be more costly than ever for (companies) to gather and leverage consumer data if they aren’t closely aligning their practices with privacy regulations. The extra cost is likely to come in the form of some of the largest fines meted out by regulators, who are paying closer attention to the actions of Google, Facebook and others in wake of some major data breaches.

Reputation Damage

Most companies are required by law to disclose data breaches involving personally identifiable information related to customers. The disclosures can lead to embarrassing publicity. For example, the U.S. Department of Health and Human Services posts details of significant data breaches affecting the protected health information (ePHI) of 500 or more individuals to its so-called “Hall of Shame.”

But even businesses that don’t deal with ePHI can face their own version of the Hall of Shame in the court of consumer opinion in the case of a data breach, according to a 2018 Experian Data Breach Resolution study:

In a recent Ponemon Institute study, 65 percent of consumers say being a victim of a data breach caused them to lose trust in the breached organization, and almost a third took steps to terminate their relationship.

Data Security Help

Data security means business security. At LMS, our data protection and project management can guide companies of all sizes through developing a secure digital infrastructure to protect consumer data. To learn more, reach out to us today at [email protected]

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