Why Data Privacy Should Be A Part Of Your Business Cybersecurity Plan

Data is one of your business’s most valuable assets. Protecting it should be a top priority, not just to keep hackers out, but to ensure you handle customer information responsibly. 

By including data privacy in your Cybersecurity strategy, you’re not only protecting your business from risks but also building trust with your customers and staying compliant with laws.

What Does Data Privacy Have To Do With Cybersecurity? 

Data privacy and Cybersecurity go hand in hand when it comes to protecting your business.

In simple terms, Cybersecurity helps protect your business from the outside (threat actors, Ransomware, social engineering attacks, and other digital threats), while data privacy focuses on how you handle and store the information you collect from customers, employees, or anyone else. 

Without strong Cybersecurity, hackers can access your data, risking privacy. Without proper data privacy, even if you have secure systems, you might not be handling or storing that data properly. 

Focusing on both ensures your business is safe from cyber threats and protects personal information, creating trust and security for everyone.

Common Data Privacy Risks & How To Avoid Them

There are several common data privacy risks that you need to watch out for in your business. One of the biggest risks is data breaches. This happens when hackers gain access to your systems and steal personal information like credit card details or contact information. To avoid this, make sure your cybersecurity measures are strong, such as using firewalls, encryption, and regular software updates.

Another risk is poor data handling. Sometimes businesses collect more data than they need, or they don’t protect it properly. You can avoid this by only collecting the data that is necessary for your business and storing it securely. Continuously review your data practices to ensure you’re following best practices.

Weak passwords are also a common problem. Employees using easy-to-guess passwords or not changing them regularly can leave your systems vulnerable. Encourage strong password policies, like using long, complex passwords, and consider using multi-factor authentication (MFA) for added security.

Human error is another risk. Employees might accidentally send sensitive data to the wrong person or mishandle it. To reduce this, provide regular training on how to handle data safely and use secure methods for sharing information.

What You Need To Know About Legal Requirements For Data Privacy

When it comes to data privacy, there are legal requirements that businesses must follow to protect people’s personal information. 

Here are five key data privacy regulations you should know about:

1. General Data Protection Regulation (GDPR) – This is a strict data privacy law in Europe. It requires businesses to protect personal data and privacy of people in the EU. If you’re a US-based business that handles the data of EU citizens, the GDPR applies to you too. It requires clear consent from individuals to collect their data, the ability to access their data, and the right to erase it. It also includes heavy fines for non-compliance.
2. California Consumer Privacy Act (CCPA) – The CCPA is a privacy law in California, USA, which gives residents the right to know what personal data is being collected about them, request access to it, and even ask for it to be deleted. If your business deals with customers in California, you’ll need to follow these rules. It’s similar to GDPR but focused on the state level.
3. Health Insurance Portability And Accountability Act (HIPAA) – This U.S. law protects sensitive patient information for healthcare organizations. If your business handles medical data, you must make sure it is kept private and secure. HIPAA also sets rules for sharing and transmitting health data, so it’s important to stay compliant if you’re in healthcare.
4. Children’s Online Privacy Protection Act (COPPA) – If your business collects personal information from children under 13 years old, you must follow COPPA. This US law requires parental consent before collecting data from children and has strict rules on how that data can be used.
5. Federal Trade Commission (FTC) Safeguards Rule – An important regulation under the Gramm-Leach-Bliley Act (GLBA), it directly relates to data privacy and security. It requires financial institutions, including businesses that deal with personal financial information, to take steps to protect customer data. This rule applies to a wide range of businesses, including banks, lenders, insurance companies, and even certain non-financial companies that provide services like debt collection or credit reporting.
6. 23 NYCRR 500 – Also known as the New York Department of Financial Services (DFS) Cybersecurity Regulation, it does address aspects of data privacy in the context of Cybersecurity. While it primarily focuses on safeguarding the financial services industry’s data and systems, it also involves protecting sensitive personal data, which ties into data privacy practices. 

These laws and regulations vary depending on where you operate, but they all share the goal of ensuring that data is handled properly and securely. 

Integrating Data Privacy Into Your Overall Cybersecurity Strategy

See how you can integrate data privacy into your Cybersecurity plan:

1. Assess Your Risks – Conduct a risk assessment of the types of data your business collects and how sensitive it is. Look at customer information, financial records, and any other data you store. Knowing where the risks are helps you decide what protections are needed.
2. Make Sure Your Data Is Encrypted – Encryption ensures that any personal or vulnerable information is unreadable to unauthorized users when it’s stored and when it’s being transferred over the Internet.
3. Control Access – Only give access to sensitive data to people who truly need it. Use strong authentication methods, like passwords and MFA, to ensure that only authorized employees can access certain information. This protects against internal and external threats.
4. Create Data Handling Policies – Develop clear policies on how data should be collected, stored, and shared. These policies should also cover how long you keep data and when it should be deleted. By setting rules for data handling, you ensure that privacy is a priority at all stages.
5. Monitor And Test Systems As Often As Necessary – Regularly test your security systems to make sure they’re working properly and are up-to-date with the latest threats. It’s also important to monitor your systems for any signs of a breach so you can act quickly to protect your customers’ data.
6. Train Employees – Your staff is a key part of your Cybersecurity and data privacy strategy. Make sure they understand the importance of data privacy, how to handle personal information, and what to do if they suspect something is wrong. Ongoing training helps keep everyone on the same page.
7. Respond To Cyber Incidents Quickly – Despite your best efforts, data breaches and Cyberattacks can still happen. Set a plan in place for responding quickly. This includes notifying affected customers, patching any vulnerabilities, and reporting the cyber incident to the necessary authorities as required.

Integrating data privacy into your Cybersecurity strategy not only protects your systems from cyber threats—you’re also showing your customers that you care about their personal information. This builds trust, reduces the risk of data breaches, and helps ensure your business stays compliant with privacy laws. 

FAQ

Why Is Data Privacy Important For My Business’s Cybersecurity?

Data privacy ensures that your customer’s personal information is protected from unauthorized access, theft, or misuse. When combined with strong Cybersecurity measures, it creates a secure environment for both your business and your customers. It also helps you comply with privacy laws and avoid costly fines or legal issues.

What Are Some Steps I Can Take To Include Data Privacy In My Cybersecurity Plan?

Provide ongoing training for your employees on data privacy best practices, such as creating strong passwords and using MFA, determining phishing attempts, and securely handling information. Additionally, 2Secure encourages data encryption to protect sensitive data during transmission and storage, which makes it harder for unauthorized parties to access or intercept it.