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Does Your Business Protect its Customer’s Private Data?

face on laptop2Businesses of all sizes should be concerned with protecting their customers’ private information. While breaches of customer data in large companies such as Target make the headlines, having your computer system hacked at a smaller company can be just as devastating to you financially. Any business that collects personal information from consumers is required by law to safeguard it. Below are a few tips to consider:

  • Understand the types of information your entity is collecting from customers and clients. If you maintain the data in a variety of formats, you must consider all the issues involved in using this method.
  • How are you protecting the information? If you retain private information on paper, consider accessibility to your file cabinets and if they are locked. If the data is kept in a digital format, is it stored on hard drives or the cloud? Confirm that wherever you are storing the data, it is protected.
  • Conduct an internal review to understand which employees, independent contractors or vendors have access to the confidential information. Sadly, may data breaches involve somebody from within the company or a contractor hired to perform work for the organization.
  • Consider whether confidential data could be inadvertently disclosed. You may need to retain the assistance of an expert to review your systems.
  • If you don’t have data controls and security systems in place, immediately implement them. For example, all computers should require a password to gain access. You need a firewall that is regularly maintained. Anti-virus software should be run routinely. Depending on the cost-benefits analysis results, you may want to consider upgrading your security system if you find it lacking.
  • Maintain a back-up system located in a secure location away from your operational system.

You should strive to minimize the amount of private information you retain in order to reduce your exposure to liability. By taking a few simple measures, you can save yourself the time and cost of future litigation.

The attorneys at The Swenson Law Firm provide a variety of business law services to entities of all sizes. Contact us today to schedule your initial consultation.

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