As data breaches, identity theft, scams, and various other crimes become more prevalent, consumers have grown increasingly concerned about the information exposed and shared on the internet. They're not only taking precautions to safeguard sensitive information but holding corporations to a higher standard. As a result, local and federal governments have begun developing strict policies to protect customer data.
Although these laws are relatively new and vary by region, there has already been a significant impact on industries like healthcare and finance. However, it won't be long before these measures are mandatory for businesses across the board. As such, company leaders are encouraged to understand the ethical and legal implications of handling consumer data within their organization. Continue reading to learn more.
Consumer Privacy
Believe it or not, consumer data is being shared without their knowledge and to unethical and even unlawful third parties. The information is acquired and used to do everything from making obsessive phone calls and overloading inboxes with promotional materials to transmitting viruses and committing identity theft.
One way consumers can reduce the likelihood of this happening is by enforcing their right to privacy. They should have discretion over who they share their information with and why.
Businesses can put consumers' minds at ease by implementing privacy procedures that protect their information from suspicious third parties. One suggestion is to have an opt-in button on your site that clearly states how their data is collected, stored, and shared. This gives consumers more control over their sensitive information.
Data Security
Sometimes, it's not the company that's sharing consumer information. Cybercriminals use advanced techniques to hack into company systems and steal sensitive data. A data breach causes stress, frustration, and financial hardships for consumers and the company. It can take months or even years to resolve the problem, compensate for the damages, and rebuild your reputation.
Although nothing is foolproof, businesses must invest in the best virus protection, security features, and training to keep consumer data safe. Stay up-to-date on the latest protection software, use platforms with encryption, and implement cybersecurity safety measures in the workplace (i.e., strong passwords, avoiding unsecured connections, and reporting lost or stolen devices). Advertise your security measures to put consumers' minds at ease.
Data Accessibility
Did you know that consumers have the right to request information on how their data is used and stored? If you cannot provide the details, it could cause conflict and distrust. As consumer data laws continue to evolve, failure to comply with a data subject access request may lead to legal ramifications in the future.
Save yourself and your customers the hassle by providing an accurate and detailed account of the information you have on file and the methods of using this information. That may include marketing, customer service, or sharing with third parties. If you do share their data with others, provide contact information for those organizations so the consumer can reach out if they have questions.
Cultivate A Trusting Relationship
Mishandling consumer data will undoubtedly lead to significant consequences for your business. Whether it's a legal requirement or not, when a consumer believes they can trust you with their information, it significantly impacts your ability to attract and retain customers. It creates a sense of suspicion and apprehension that causes consumers to turn to other service providers for business. As you're likely aware, negative news has a tendency to travel fast, meaning it could impact future earning opportunities and ruin your reputation.
The internet may provide many conveniences to businesses and consumers, but it also comes with various risks. As consumer data becomes increasingly vulnerable to cybercrimes, local and federal governments are cracking down on companies to enhance their privacy and security measures. Why wait for it to be a standard when you can start now and cultivate a trusting relationship that keeps your customers safe and happy? Use the suggestions listed above to ensure consumers can trust you with one of their most valuable assets - their data.
