According to a
recent survey released by the Financial Services
Authority, UK companies severely underestimate
the risk of customer data loss and fraud to their businesses.
Significantly, the study showed that SMBs were the worst offenders
in their disregard for customer information and this is also a
trend that we have seen among our customers, writes Robert
Epstein, business lead, small medium business,Microsoft UK.
It is extremely worrying that despite the series of high-profile
data losses over the past year and growing awareness among
consumers, businesses are still not taking the risk seriously. UK
businesses must change their attitude to customer data protection
or they risk misuse and potential loss of this information.
This is all the more troubling given the growing usage of
customer information. Businesses are collecting, analysing and
sharing customer data in increasing numbers. Although numerous
studies have shown that there is greater awareness among consumers
about the risks associated with data security, rising usage has not
been matched by an increase in privacy procedures and customers are
becoming extremely uneasy about sharing data. To combat this, SMBs
should take measures to show customers that they are using their
details in the right way. This is beneficial for both parties as
customers are more likely to willingly provide information on
themselves and allow it to be shared, if they are confident that an
organisation is managing data correctly and using it to provide
useful and relevant information.
Not only will this help businesses to increase consumer
confidence, it can help to build sales channels. Despite apparent
growth, internet-based sales still constitute a small percentage of
total retail sales. This is largely because the internet continues
to be seen as a threat to customer security, and yet it offers a
compelling sales channel for SMBs that may not be able to afford
retail premises. Moreover, the increasing number of businesses that
are reliant on web 2.0 technologies and e-commerce must also take
action. But the big question for many is how?
Technology undoubtedly plays an important role in this. But it
is critical that businesses use the right technology to protect
data, as the way in which data is stored impacts the type of
security needed. For example, the increase in flexible and mobile
working has led to a rise in the amount of data stored on mobile
devices and in remote locations. As a result traditional means of
protection, such as passwords, may no longer be effective and
businesses should consider other technology solutions when
protecting customer details.
However, technology alone will not tackle the root of consumer
distrust. Businesses need to demonstrate that they are aware of the
risks, such as leaks and misuse by staff, and are taking the right
precautions. For example, we have seen a worrying number of laptops
containing confidential personal details stolen over the last year
- devices that could have been simply protected using Vista Bit
Locker. As such, I'd urge businesses to demand a detailed
understanding of the location, usage and security of customer
records. It can help to introduce new policies and procedures, from
storage policies to access rights, which define the value of data
and encourage an organisation to change its attitude to security.
The resources are available and businesses simply cannot afford to
be negligent in the protection of customer information.
According to a recent survey released by the Financial Services
Authority, UK companies severely underestimate the risk of customer
data loss and fraud to their businesses. Significantly the study
showed that SMBs were the worst offenders in their disregard for
customer information and this is also a trend that we have seen
amongst our customers. It is extremely worrying that despite the
series of high-profile data losses over the last year and growing
awareness amongst consumers, businesses are still not taking the
risk seriously. UK businesses must change their attitude to
customer data protection or they risk misuse and potential loss of
this information.
This is all the more troubling given the growing usage of
customer information. Businesses are collecting, analysing and
sharing customer data in increasing numbers. Although numerous
studies have shown that there is greater awareness amongst
consumers about the risks associated with data security, rising
usage has not been matched by an increase in privacy procedures and
customers are becoming extremely uneasy about sharing data. To
combat this, SMBs should take measures to show customers that they
are using their details in the right way. This is beneficial for
both parties as customers are more likely to willingly provide
information on themselves and allow it to be shared, if they are
confident that an organisation is managing data correctly and using
it to provide useful and relevant information.
Not only will this help businesses to increase consumer
confidence, it can help to build sales channels. Despite apparent
growth, internet-based sales still constitute a small percentage of
total retail sales. This is largely because the internet continues
to be seen as a threat to customer security, and yet it offers a
compelling sales channel for SMBs that may not be able to afford
retail premises. Moreover, the increasing number of businesses that
are reliant on web
2.0 technologies and e-commerce must also take action. But the
big question for many is how?
Technology undoubtedly plays an important role in this. But it
is critical that businesses use the right technology to protect
data, as the way in which data is stored impacts the type of
security needed. For example, the increase in flexible and mobile
working has led to a rise in the amount of data stored on mobile
devices and in remote locations. As a result
traditional means of protection, such as passwords, may no longer
be effective and businesses should consider other technology
solutions when protecting customer details.
However, technology alone will not tackle the root of consumer
distrust. Businesses need to demonstrate that they are aware of the
risks, such as leaks and misuse by staff, and are taking the right
precautions. For example, we have seen a worrying number of laptops
containing confidential personal details stolen over the last year
- devices that could have been simply protected using Vista Bit
Locker. As such, I'd urge businesses to demand a detailed
understanding of the location, usage and security of customer
records. It can help to introduce new policies and procedures, from
storage policies to access rights, which define the value of data
and encourage an organisation to change its attitude to security.
The resources are available and businesses simply cannot afford to
be negligent in the protection of customer information.
Private sector must do more to protect customer data, analyst says
>>
FSA fines stockbroking firm £77,000 for weak data security
>>
Lords committee to re-open inquiry into data security
>>
Rising cost of data breaches fuels security spending
>>