You see it on the news frequently: a large corporation, medical facility, or worse yet, the American military, has experienced a security breach of valuable electronic records. Whether hacked through an internal firewall, stolen laptop, or an “inside” connection, loss of such valuable and sensitive data can spell disaster for small business owners.
Indeed, the costs of losing data are high. It can create liability issues if client data is used fraudulently due to negligent record keeping. Stolen data can put your reputation on the line and ultimately cost you your business if clients do not trust you.
What can you do to protect the private and sensitive data you collect from your clients? Here are some tips to safeguard your vital business information.
Collect Essential Data Only
The first step is reviewing the information you collect from your clients or vendors. Is it absolutely necessary to collect Social Security numbers from clients? Or bank accounts?
Unless you are running credit checks or reporting income to the IRS, there is very little need to require Social Security information. You can assign client identifiers that do not use this sensitive data. Bank account numbers are also highly sensitive. Disregard it if it is not an absolute business need.
Formulate a Strict Internal Access Policy
There should be no reason that your clients’ personal data should be available to every employee in your company. Here are a few tips to help with your policy:
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Restrict access to data to only those needing the information. You can also restrict database access so that some employees may have access to address information, but not social security numbers.
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You can separate roles and responsibilities to ensure there is not one single person collecting money, issuing invoices, and paying bills. That is simply too much responsibility and sensitive information in one employee’s hands.
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Lock away private information. Highly sensitive information should be sealed and kept in a locked file storage.
Update Your Software
Updating your software also means changing your employee passwords regularly – at least every 3 or 4 months. Check with your software provider for security “patches” so you are always updated with the latest features. In addition, take regular steps to renew and update your antivirus and firewall software. This type of software protection is vital – don’t skimp on this investment.
Keeping sensitive and valuable data safe and secure requires effort and a well-developed privacy policy. Take the time to protect your data from theft or fraudulent use, and your business and clients will both thank you.
