Data Protection Strategies

In today’s digital age, many platforms, such as online banks, healthcare portals, dating applications, and e-commerce sites, are continuously gathering personal data from consumers. Implementing data protection strategies, including cloud data protection, is critical to preventing unauthorized access to this data; ensuring the security and privacy of both businesses and consumers.

What is Data Protection? 

Data protection involves securing personal data, such as financial and health information, to prevent unauthorized access, accidental disclosure, loss, or damage. 

Adhering to local and international data protection laws can safeguard your business from significant penalties, and enhance trust with your customers in today’s digital era.

Data Protection vs. Data Privacy

While the terms data protection and data privacy might seem similar, they have important differences. In the European Union, data privacy is often considered a  human rights issue. It provides people with more control over their personal information. Even without specific legal measures, you can take actions to maintain your privacy online.

On the other hand, data protection refers to the technical methods used to ensure data security and adhere to privacy laws. By guaranteeing the privacy of sensitive information, businesses, government agencies, and other organizations can establish and maintain public trust.

Data Protection Strategies

To protect yourself and your data, you should be aware of the potential risks associated with activities like opening emails or attachments, making online purchases, or browsing the internet. Be cautious of data mining practices, as accumulating large volumes of personal, financial, or medical data in one place can attract hackers.

Here are some other steps you can take to safeguard your information, finances, passwords, and computer from cyber threats:

• Avoid conducting sensitive transactions over public internet services or unsecured WiFi networks. 
• Stay alert for phishing emails; avoid clicking on suspicious or unknown email attachments or links.
• Create strong, unique passwords for each account.
• Monitor your credit card, credit reports, and bank accounts regularly for any suspicious activity.
• Regularly update your operating system, applications, and antivirus programs.
• Use secure browsers and limit the information you share on social media.
• Use two-factor authentication to further protect your accounts in the event that your password becomes compromised. 

Keep in mind that many websites collect personal data about you for marketing purposes, using digital cookies to track your online activity. Consider installing software that blocks this data collection, and be sure to check if websites offer options to opt out of cookie collection.

Data Breaches

A data breach is when an unauthorized individual gains access to sensitive information, such as Social Security numbers or banking and credit card details.

For instance, in April 2023, it was found that cybercriminals may have accessed the names and confidential Medicaid details of 20,800 people in Iowa. Earlier, in February 2023, Brightline uncovered a data breach in Stanford University’s health plan, affecting employees, postgraduate students, and their dependents.

According to IT Governance UK, some of the most significant data breaches in 2023 included:

• Twitter: 220 million records breached
• T-Mobile: 37 million records breached
• People Connect: 20.2 million records breached
• JD Sports: 10 million records breached
• AT&T: 9 million records breached

In a ransomware attack that took place in March 2023, Latitude Financial saw a breach of 330,000 customer records, which also involved credit card details of Cole supermarket customers. Since 2005, a total of 14 million customer records from Latitude have been stolen.

Additionally, in March 2023, hackers managed to steal 10 terabytes of data from Western Digital Corp., which contained substantial customer information. They demanded a ransom of tens of millions of dollars to not release the breached data.

7 Standards of Data Protection

If your business handles sensitive data, you need to understand and apply certain data protection principles, recognized globally and embodied in the General Data Protection Regulation (GDPR). This includes: 

1. Accountability: Make sure those in your organization who deal with sensitive data are well-trained and understand the GDPR’s significance. Only grant access to those whose roles have a legitimate interest in using the data. 
2. Accuracy: Ensure that personal data is correct, and regularly update anything that is outdated or incorrect.
3. Data minimization: Only process personal data when absolutely necessary and relevant.
4. Integrity and confidentiality: Safeguard personal data from data breaches and unauthorized access during storage, transfer, and processing activities. 
5. Lawfulness, fairness, and transparency: Collect and process personal data for legitimate purposes only, and with the full knowledge and consent of the data subject. 
6. Purpose limitation: Gather personal data for a specific, outlined use and time period.
7. Storage limitation: Don’t hold on to personal data longer than its intended use requires.

Every organization should create a data protection policy and a management framework to handle, classify, and secure personal information in accordance with these data protection and privacy principles.

Cloud storage has become a leading solution in the past decade for accessibility and data security. When opting for cloud data protection, you will need to make decisions in regards to the model you use, such as public, private, community, or hybrid clouds, and the type of service you use, including software-as-a-service, platform-as-a-service, function-as-a-service, and infrastructure-as-a-service. 

Remember, cloud storage can be particularly susceptible to security hacks and data breaches, so continuous data protection measures, such as encryption keys, are vital.

Fraud and Scams

The Federal Trade Commission reported that scammers defrauded around $8.8 billion from consumers in 2022. The majority of these losses came from imposter scams, where fraudsters pretend to be someone trustworthy to trick you into sending them money.

Be wary of phone call scams such as:

• A person claiming to be from the IRS demanding immediate payment for “unpaid taxes” or threatening arrest.
• A caller posing as an IT technician insisting on accessing your computer for repairs or updates.
• A “grandchild in distress” pleads for urgent financial help.
• The caller claims you’ve won a lottery but must pay fees before claiming the prize.

If you fall victim to a scam, you can file a complaint on the FTC’s official website. To report international fraud, visit econsumer.gov. 

Identity Theft

Identity theft is when a cybercriminal steals your personal data to carry out fraudulent activities in your name. They could use your bank details to make unauthorized purchases, or even open bank accounts under your name. The two most common types of identity theft are credit card fraud and tax-related fraud, though there are many other types.

Here’s how someone could steal your identity:

• Using computer viruses to gather and spread your personal information.
• Eavesdropping or recording your phone conversations.
• Using handheld devices to skim and duplicate your credit card details.
• Sending phishing emails pretending to be from a reputable source, which trick you into visiting a fake website and providing your personal data.
• Installing spyware that logs your keystrokes on your smartphone or computer to steal passwords.

Anyone can be a target of identity thieves. To safeguard yourself, regularly review your bank and credit card accounts for unfamiliar transactions, particularly unrecognized purchases. Use password managers to enhance the security of your online accounts.

Act swiftly if you notice unknown accounts on your credit report or receive a data breach notification from your service provider.

Health Information

Cybercriminals also target your medical information because they can use it to obtain prescription drugs or make fraudulent insurance claims under your name. In 2022, health care institutions and other organizations reported 707 data breaches affecting 51.9 million records to the Department of Health and Human Services’ Office for Civil Rights.

To guard against the rising threat of medical identity theft, frequently review your health plan statements and medical records for any discrepancies.

Sharing Data

Experts advise disabling location tracking and data sharing for marketing reasons whenever you can. If your smart device automatically connects with other nearby devices, turn this feature off to protect your personal information.

Apps, browsers, and consumer tech devices, such as smartphones and laptops, typically collect your data usage by default to enhance the user experience and fix bugs. This means your privacy could be in jeopardy if you don’t adjust the default settings to reduce data sharing.

Data Protection Laws

The United States has implemented a wide range of data protection laws, each targeting a different sector. For instance, the Health Insurance Portability and Accountability Act protects medical information, the Graham-Leach-Bliley Act applies to the financial sector, and the Privacy Act of 1974 regulates federal agencies.

In contrast, The European Commission’s General Data Protection Regulation (GDPR) provides a more comprehensive approach, recognizing the right to privacy. The UK has a similar law, the Data Protection Act, granting rights to its residents. In the United States, California has the California Consumer Privacy Act, a data protection law inspired by the GDPR, and four other states will start implementing comparable laws in 2023.

Data Protection Compliance

Compliance with data protection laws is essential when collecting customer data. These laws are designed to protect personal data and uphold consumers’ privacy rights. Non-compliance can lead to significant penalties, reputational damage, and loss of customer trust. 

Beyond the legal obligation, compliance also reflects an organization’s commitment to safeguarding personal information, which can foster customer trust and loyalty.

To comply with regulations and meet your organization’s legal obligation, business owners should set up standard procedures for securely creating, collecting, storing, and data processing. A data protection officer can supervise the detailing of technical requirements, compliance documentation, and staff training.

By adhering to data protection principles, organizations respect the privacy of their customers and maintain a secure and trustworthy business environment.

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