Data breaches and cyber threats are sadly becoming the norm. Therefore, protecting client data should be a top priority for information services providers. Ensuring data privacy and security is not only a legal obligation but also critical for maintaining trust and credibility with clients. And…it’s always good to remember that your data (and mine) is out there too!
Let’s begin with a refresh regarding what privacy and security mean in the data world. Data privacy refers to the proper handling, processing, and storage of personal information to protect it from unauthorized access. Data security, on the other hand, involves implementing measures to protect data from breaches, theft, and other malicious activities. So in short, privacy = proper handling, while security = protection from malicious activity. Simple enough, right? (Eye roll)
Although it may feel like a tough and sometimes fruitless task, there are a few ways you can help keep client data safe.
Start by encrypting sensitive data both in transit and at rest. In doing this, even if data is intercepted or accessed without authorization, it remains unreadable.
Second, keep your security software, firewalls, and antivirus programs up to date and patch vulnerabilities regularly to protect against the latest threats.
Next, be sure to implement strict access controls so only authorized personnel have access to sensitive data. Using multi-factor authentication and role-based access controls will also enhance security. I know it can be a pain but the fallout you could endure due to a data breach would be much more damaging.
Commit to collecting and storing only the data necessary to do business. Avoid storing unnecessary personal information to reduce the risk to your client base should a breach occur. Don’t hold onto data thinking it may be of use to you someday down the road. Just like the concert t-shirt from 1985 you thought you might need in the future. You won’t, so get rid of it.
Perform regular information security audits to determine if there are any vulnerabilities in your data protection measures. Are you sure none of your employees are using the sign in credential, P@$$word123? You may be surprised.
To ensure the above password is never used again, educate your employees about data privacy and security best practices. Ensure they understand the importance of protecting client data and are aware of common threats like phishing attacks. Run internal phishing simulations, mandate yearly compliance courses, require complex passwords and password resets at least every 90 days.
Where possible, anonymize personal data to protect individual identities. This involves removing or encrypting personally identifiable information so that data cannot be traced back to the individual.
And last but not least, develop and maintain an incident response plan to quickly address data breaches or security incidents. This plan should include steps for containment, investigation, notification, and remediation. The crossing of fingers can be added for good measure.
And, I’m sure this goes without saying but, always operate ethically when handling client data. Be transparent with clients about how their data is collected, used, and stored. Provide clear privacy policies and obtain informed consent. Respect your clients’ privacy preferences and honor their requests regarding accessing, modifying, or deleting their data. Never use client data for purposes other than those explicitly agreed upon, which includes the sharing or selling of data without consent.
Protecting client data can be a challenge but with robust security measures, and ethical practices, you may be able to sleep better at night and so will your clients.