Why protecting customer data is necessary?

A company might have numerous data related to transactions and history of customers and other vital details. In a large scale company, these data are used to monitor a customer, and their behaviors, which are studied and analyzed accordingly, losing these data might be problematic for the company, as they may have to spend a considerable amount of money on their part to recover it.

What are the problems in securing customer data?

The first and foremost challenge that a company faces in securing customer data is the inexperience of the staff who handle the data. This leads to improper data storage and handling. To avoid this, the staffs need to be appropriately trained in data handling and data management by professionals in the field (Pearson, 2017). Sometimes, the data may be accessed by an unauthorized person present within the company, which might lead to unwanted altering of data and increase the chances of data-stealing.

To avoid this, proper authentication must be issued to the staff who are handling customer data by providing them with appropriate login credentials. Many times, a company might fail to invest in adequate malware detecting software, which might result in bot attacks, viruses, malwares, and entry of other types of harmful programs inside the system, which might endanger the data stored in company systems (König et al., (2018)

How can the company communicate about data monitoring and preserving?

Customers have a right to know about their data and policies related to them. Companies may adopt a variety of techniques to inform the customers about their data being monitored and preserved by them. Before filling up a form that requires a customer to submit their details to the company, the rules and regulations must be stated clearly on the backside of the form or a separate page, so that the customer might see and read them properly. For a customer providing their details online, the company can put up data monitoring and sharing regulations on the terms and conditions page of their website, which needs to be accepted by the user before proceeding (Pierce et al.,(2018). The company may also verbally communicate these through a company representative or sent texts or emails to the customer.

The reaction of a customer towards the monitoring and storing policy

A customer might choose not to opt for the services if the rules are against their interest. They might ask the company to delete their data after the prior agreement terms are over, or might request clarification over a policy that is not clear or previously unknown to them. The customer might request the company to reconsider or alter specific terms if any terms are not suitable for them.

Conclusion:

Company data are prone to get hacked or siphoned off by external or internal users from their profit and might end up putting the customer in a compromising situation. To avoid this, a company needs to secure and monitor the customer data in the best way possible, and inform the customer beforehand about it.