What Is Data Protection and Why Is It Important?

Data is considered the most important entity in the modern digital world. Various technologies to access data, retrieve it, and use it efficiently to create massive profits are emerging on a daily basis. On the other hand, protecting data is becoming a challenging task as even a small leakage of information can be used to track several other details about the concerned person. 

Data protection is not only about securing the data. According to the law, it is the fundamental right of every citizen to have a certain amount of privacy. The ever-increasing digitization of various services makes it impossible for them to get the required privacy.  

Who Collects Data?

The 1974 US Privacy Act and EU GDPR laws enforce strict rules for all the companies collecting data of a person to keep it safe. For example, banks that collect sensitive financial details of their customers should invest heavily in securing their system properly. 

Hospitals collecting and storing data about a person’s health, genetics or other medical information should take the required steps to protect it from falling in the wrong hands. Failing to do so will make the patients fall victim to various phishing attacks targeted at them like alternate medicine or low-cost medicine. 

Apart from these key service providers, users give their data to several platforms from e-commerce to sites like restaurant reservations, apartment booking, social media, work-related sites, and others. 

What Type of Data Is Collected?

The most important form of data collected is credit card details, name, phone number and email address. Financial, medical and personal data including property, tax or government benefits information are also collected and may be retrieved indirectly without the knowledge of the customer. Companies collecting this information should take adequate steps to protect it like gold and prevent it from reaching the hands of hackers who operate on the black market. 

Small entrepreneurs often digitize their operations and store all their company, customer and employee data online. Here are a few ways data can be kept safe in the company premises. 

1. The company collecting the data should use strong antivirus and malware protection software in all the systems it uses. 
2. All organizations should take proper measures to install software that protects the server and the cloud data. 
3. They should use multi-level encryption to protect the financial details of the customers. They should protect their database using advanced 10-digit passwords and multi-level authentication. 
4. Only specific trusted employees must have access to the core database. The employees should be trained well about data security and kept updated about various digital crimes and the ways to prevent them. 
5. The company staff should be vigilant to take careful steps not to compromise data security in the company. They should never leave their system unattended or unlocked for a long time. 
6. Employees should not share their passwords or work details and access codes with anybody. They should keep mum about the important data they are handling even to their family and close friends. 
7. Data leakage or data breaches might happen in a variety of ways. Employees should be updated regarding that through regular discussions. 
8. All the employees should develop the habit of using strong password managers and working only in company-protected setups like CRM or shared workspace. 
9. They should not try to copy or take any data on a flash drive or USB from the company. They should avoid visiting unwanted websites on the company premises. 
10. Employees should be very careful about the emails they receive. They should never open email from strangers and be careful with suspicious attachments in all cases. 

Restrict Data Access

Apart from these ten steps, the company should have strict policies on who can enter their premises and for what reason. Third-party workers like cleaners and servicemen can enter the premises only if they show proper identity cards. 

It is wise to look up their data on the Nuwber website before allowing them to enter the core area where the company database and other important information are stored. That way you’ll verify their details and prove their identity.

Use Customized Security Software Solutions 

Most companies used locks and keys to protect their assets, lock up their file cabinets and the entire office premises in the olden days. As the data is shifting more and more from paper to virtual files, taking steps to protect the data online becomes mandatory. 

There are several security software solutions dedicated to data protection, that create tailored solutions that meet the specific needs of each company. Use such services to get advanced protection of all the data stored in your office and connected to your business. 

What Happens If Data Is Not Protected Properly?

• The company might face a lawsuit from the government for their negligence. 
• Customers aren’t willing to work with a company which doesn’t provide good security to their data.
• Leakage of information from a specific company will highly compromise its image in the industry. 
• The company will lose valuable data and sometimes pay huge monetary compensation to people who had been affected by the data breach. 
• The competitors will get various secrets about the company easily. 

Conclusion 

Data both personal and business-related is extremely important. The changing world looks at data as the most valuable entity in every company. Competitors, hackers and marketers are forever looking for valuable data that will fetch them enormous profits. 

It is the duty of each company and enterprise to protect the data they collect and their own business-related information securely. Use the advanced technology and follow the guidelines given by the government to train the employees and keep the data safe. 

Digital locks and keys in the form of security software and add-ons for data protection are as important as physical locks and keys. So make sure you take advantage of the products available on the market.