Protection of customer data is a strategy that businesses employ to ensure that sensitive information about their customers is safe from cybercriminals and internal negligence. This can include password protection and network security as well as encryption of data. It’s a crucial element in creating a culture of trust where customers feel secure in entrusting information to your company.

Small businesses face unique challenges when it comes to security of customer data. However, they can take steps to protect the privacy of their customers’ data and comply with the regulations even without the resources of their larger counterparts.

When a business collects personal data, such as credit card or social security numbers, it must safeguard the data from cybercriminals and hackers that want to exploit it. Unsecured data for consumers horizontal integration can result in devastating consequences for the company and its customers.

The worst-case scenario occurs when hackers gain access to sensitive information and use it for identity theft or to commit fraud. Additionally, the victim may be impacted financially and damage to their reputation.

Smaller businesses can lessen their risk of data breaches if they limit access to customer information and regularly back up that information. They can also require that laptops be stored in a secure area and implement security features, such as requiring an ID card “smartcard” or thumb print, or other biometric along with a password, to access information on their computers. They can also erase files that are no longer needed and regularly replace the old ones with fresh files.