A Comprehensive Guide to Data Security for SMEs
As the new goldmine, from the moment data is collected, stored, and processed, it is susceptible to cyberattacks. While large businesses might be too large a target for cybercriminals, the same can’t be said for small and medium-scale businesses. This is why knowing about data security is important for all businesses. In 2022, the Cyber Security Expert Association of Nigeria reported that cyberattacks on SMEs grew by 87%. The result of these statistics is evident: impersonations, identity thefts, financial thefts, and targeted attacks. This calls for more actions regarding data security amongst SMEs. What is Data Security? Data security is the process of safeguarding digital data from external threats (corruption, theft, and unauthorized access) to its integrity. It is important at every stage of data’s lifecycle—collection, processing, and storage. Often used interchangeably with data protection, it is not the same. Data protection is the entire process of safeguarding data from accidental loss or compromise. Basically, data protection focuses on safeguarding data from inside threats—mishandling and accidental loss. While data security keeps the bad guys out—unauthorized access and cyber attacks. Why is Data Security Important To SMEs? There are a handful of reasons why data security is important to SMEs. Top on the list are the legal implications of a successful data breach. Organizations are held accountable for data collected and processed under data protection laws. Under each one of those laws, businesses have to fulfil certain obligations towards data security. In the event of a data breach, the organization faces the full wrath of the law. Data subjects may also sue the business. There are also reputational consequences to consider. Data breaches cause so much damage to the reputation of the affected business. That’s something no business wants. Under the NDPR and GDPR, businesses are mandated to announce every data breach occurrence within a set timeframe. A weak data security system will cause any business to make such announcements regularly. It’s the business equivalent of the “walk of shame.”. And, of course, the financial costs of a data breach. Money and time will be spent to correct the effects of the attack. Since the entire data security system will be evaluated and updated. Most small and medium businesses cannot afford the costs of a data breach. So, adequate data security should be implemented. The 3 Pillars of Data Security There are three major elements, or principles, of data security, also called the CIA Triad. They serve as a template or framework for an absolute data security system. Here’s what they mean: Confidentiality: Data is accessed only by authorized users. Integrity: All data stored must be accurate, reliable, and not changed unwarranted. Availability: Data must be available and readily accessible when needed. Data Security Technologies for SMEs The right set of data security technologies is beneficial to Preventing data breaches in small businesses Data Auditing Data-auditing software solutions are just like spycams. They record everything from who accessed what information to control changes. Such software solutions are necessary for all small and medium-scale businesses to have. In the event of a data breach, it is easier to figure out the problem(s) with data auditing. Data Risk Assessment A data-risk assessment always carries out a thorough job. With it, sensitive data is discovered, along with potential threats to it. A data risk assessment goes the extra mile in preventing data breaches in small businesses by recommending remediation pathways. Data Real-Time Alerts Discovering a database takes far too long for organizations. Oftentimes, these reaches are discovered by customers and other third parties With real-time monitoring systems preventing data breaches in small businesses becomes easy, as SMEs get data breach alerts immediately. This helps to reduce data loss, destruction, and unauthorized access. Data Minimization The more data you have, the riskier it becomes. That is why data minimization is a data security technology. Always hold on to necessary data only. Data Security Regulations and Compliance Data security is such an important phenomenon that regulations for it have sprung up all over the world. What is the need for data security regulations? It is necessary to provide a clear data protection or security template to organizations. Also, to protect the rights of data subjects, such laws have to be laid down. That way, any organization defaulting can be held accountable. Important Data Security Regulations As a growing business willing to go the extra mile to secure data, it’s of utmost importance that you understand regulations. Here is a small compilation of data security regulations you need to know. The most popular regulation is the GDPR (General Data Protection Regulation). It was enacted in the European Union to ensure proper data protection for its citizens. The main focus of the GDPR is personal identifiable information (PII). It requires every organization handling EU data, in or outside the region, to practice premium transparency. The GDPR is not to be trifled with. It imposes dire punishments on any organization found to be non-compliant. A fine of EUR 20 million or up to 4% of the annual global profit, whichever is higher, can be imposed on offending parties. NDPR (Nigerian Data Protection Regulation) This regulation is an adaptation of the GDPR. The major difference between the two is scope. Established in 2019, the NDPR aims at protecting personal data that belongs to Nigerian citizens from loss, compromise, and unauthorized access. Payment Card Industry Data Security Standards (PCI-DSS) This regulation applies to any business that handles credit card data. Be it acceptance as a payment method, storage, transmission, or even third-party service involvement,. Unlike the GDPR and NDPR, it is not imposed by a government body. PCI-DSS is enforced by an independent regulatory body called the Payment Card Industry Security Standards Council. Data Compliance vs. Data Security Compliance Oftentimes, data compliance is mistaken for data security compliance. The former concerns the entity rules and regulations applicable when handling data. While the latter, data security compliance, is a subset of data compliance,. It is restricted to the security aspect of handling data. In a nutshell, data security compliance is a type of data compliance.
Why Transparency Is Important in Data Breach Management
In March 2020, statistics showed that Cyber scams increased by 400%, and this trend did not improve in 2023. This statistic simply means that we are at more risk of getting our personal information stolen or misused. Therefore, effective data breach management is more important than ever. Imagine waking up to find that your personal data has been stolen and used for unexpected purposes. Extremely scary right? That’s exactly what we deal with as we become more reliant on technology. For this reason, customers need to have effective data management strategies to protect customers’ data. However, while safeguarding your system from these breaches is not 100% guaranteed, effective data breach management strategies can help build trust. Also, you can let your customers know whenever a breach occurs. Do Customers Really Need to Know? Sometimes, companies believe their customers do not need to know when their data has been stolen or misused, but I strongly disagree. Whenever a customer shares their information, they absolutely trust that you’ll protect their data. So, when their data gets stolen, that’s also a breach of trust and you’ll have to show them that you have their interest at heart. As a company, once your customers’ data is stolen, you’d have to contact a body that handles cybersecurity issues in your country within 72 hours. After placing the report, you can then proceed to check what data was stolen. If you find out that the data stolen was just your customer’s name or the data won’t put them at any risk, then there’s no need to inform them. This is the only exception when a data breach occurs. On the other hand, if you discover that the stolen data poses a risk to your customers, you need to inform them. Your company can do this by making a formal announcement. For example, Twilio experienced a data breach that exposed 33 million phone numbers belonging to Authy users. This breach was discovered in June 2024 after a hacking group called ShinyHunters shared a file they claimed to contain numbers of Authy users. When Twilio discovered this, they made a public announcement on July 1 to inform their users and the public about the breach. Furthermore, Twilio went on to inform the 163 customers who were affected. Due to Twilio’s transparency, only a few percent of their customer base got discouraged. However, they were still able to gain customers’ trust which is a core part of data breach management. Should Companies Be Held Responsible For A Data Breach? Sometimes, it isn’t always clear who to blame whenever a breach occurs. A data breach can either occur due to human error or an error from the company. But in most cases, the company usually shoulders the blame. Here’s why. Whenever customers put their data into a company’s system, they expect that the company will be responsible for protecting their data. Some of these customers aren’t even aware that certain things they do can open them up to risk. So, they end up blaming the company for not taking appropriate precautions to prevent the breach. However, even if the company gets sued for the breach if it’s a larger organization, the CISO — Chief Information Security Officer or anyone in charge of the company’s data security will face the repercussions. This is because the CISO is responsible for making decisions on data security. Aside from the CISO, other people that could be blamed for any data breach are employees. Employees if not trained can become victims of phishing attacks. Because these attackers tend to use data from discarded drives to trick employees into sharing private information. Why Companies Should Be Transparent With Customers After Data Breach In 2016, Uber fell victim to a massive cyber attack that compromised the personal data of millions of users. Instead of promptly notifying the public, Uber opted to conceal the breach and paid a ransom to the hackers. This decision ultimately led to a loss of customer trust, legal consequences, and a tarnished reputation. When the news of the breach finally surfaced in 2017, Uber faced intense backlash and criticism for its lack of transparency and failure to safeguard user data. The company’s handling of the breach resulted in a significant loss of customers and a damaged brand image. Importance of Transparency in Data Breach Management Below are the reasons why companies need to be transparent with their data breach management with consumers. 1. Helps Build Trust By being open and honest about the breach, companies demonstrate their commitment to transparency and accountability. This eventually helps to maintain customer trust. Trust is a fragile asset that can be easily lost when a data breach occurs, but transparency can help mitigate this loss. Additionally, when companies are transparent about a breach, they show customers that they value their relationship and are willing to be vulnerable. This vulnerability can actually strengthen the bond between the company and its customers. By being transparent, companies can rebuild trust and emerge stronger from the experience. 2. Transparency in Data Breach Management Shows Empathy Transparency in data breach management procedures acknowledges the potential harm caused to customers. It shows empathy and understanding of their concerns. Whenever a company is transparent about a breach, it shows customers that it understands the potential impact on their lives. Also, empathy can help customers feel seen and heard, which can reduce anxiety and frustration. Furthermore, when companies acknowledge the harm caused, they can take the first step toward healing and rebuilding trust. Empathy is an essential component of transparency, and it can help companies go through the crisis more effectively. 3. Provides Clarity Clear communication helps customers understand what happened, what data was affected, and what steps they can take to protect themselves. Clarity is essential in a crisis, as it helps reduce uncertainty and anxiety. When companies provide clear communication, they enable customers to take action and protect themselves. Clear communication also shows customers that the company is committed to transparency and accountability.
