Mark Read, head of data breach solutions at TransUnion in the UK, pictured, offers five steps to success in helping to protect customer data.
In a digital age, data security has become a critical issue for businesses of all sizes. As advanced technology continues to be more embedded within business operations, consumer data has become more susceptible to cyber attacks.
TransUnion’s research shows that half of IT professionals (49pc) report that there is more pressure than ever on businesses to keep consumer data safe. Yet, the majority say they do not have the full range of measures in place to protect their customers after a breach, such as free credit report monitoring (57pc), fraud victim assistance (59pc) and dark web monitoring (60pc).
Impact of a data breach
The impact of a data breach can be significant for businesses, both financially and in terms of reputation. In fact, among those businesses that had experienced a data breach, 40pc reported reputational damage as a consequence and 27pc lost their customers. The financial impact of a data breach can also be hefty, as businesses may have to spend large amounts of money to repair the damage and restore consumer trust. In addition to the cost of the actual breach, companies may also be subject to fines and legal penalties.
Moreover, a data breach can affect the company’s stock value and its relationship with shareholders. Estimates suggest the average total cost of a breach in the UK is more than £4 million and grew 8.1pc year-on-year between 2021 and 2022. What are the steps that companies can take to ensure the safety and security of their customer data? Let’s take a look:
Conduct regular risk assessments to identify potential vulnerabilities and threats. This can help your business stay up to date on the risks and make sure security measures are effective in protecting against them.
Implement security solutions such as firewalls, antivirus software and encryption to protect against cyber attacks. A relatively simple tool like multi-factor authentication can have a significant impact in nipping issues like lost or stolen passwords in the bud – as it means users need two or more ID verification steps to access data.
Educate employees on security best practices and ensure that they understand the importance of data protection. Human error is a perennial risk factor for breaches, and cybercriminals’ tactics are changing in line with changes in consumer behaviour. As such, the more regularly you are delivering training, the better protected your organisation and customers are likely to be.
Set up consumer credit monitoring services in advance to quickly address any fraudulent activity and minimise the reach of a breach. For example, TransUnion’s TrueIdentity platform is one solution that allows businesses to help safeguard their customers’ identity following a data breach – by enabling the individual to access credit reports, credit and dark web monitoring, as well as alerts for free.
Remember the three ‘R’s when a breach occurs: readiness, response and remediation. This means having incident response plans in place ahead of time in case of a security breach, reacting as quickly as possible if data is improperly accessed and protecting the privacy of an individual’s identity and accounts. All of these can help businesses minimise damage – and keep customers onside.
Be prepared
With the constant evolution of technology and the sophistication of attacks, it is essential to be proactive in protecting your business against the consequences of a data breach.
When a data breach occurs, the first priority should be protecting your customers. Not only is this the right thing to do, but it is also crucial for protecting your business’s reputation. By taking these steps and bringing onboard the right technological solutions ahead of time, businesses can be confident that they are well-prepared to protect customer data and minimise any negative impact.
