Are You Taking the Proper Precautions to Protect Customer Data?

Information privacy and security are hot topics these days and for good reason. The failure to protect customer data can lead to liability and harm your business reputation. Therefore, it is important to understand, both from a legal and technological perspective, how to develop sound privacy and security policies that protect sensitive customer information

Data Privacy                                               

To avoid liability, businesses should create a privacy policy that details how customers’ personal information is collected, used, shared, and secured. While most businesses are not legally required to enact privacy policies, they can certainly help avoid future legal headaches.

It is also important to note that businesses that deal with certain kinds of sensitive data such as health records and financial information do have specific legal obligations. For instance, HIPAA regulates the privacy and security of medical information, and the Graham-Leach-Bliley Act stipulates how financial institutions must protect customer data.

Finally, all companies must ensure that their privacy policies are followed by employees as well as third party vendors that manage or store data.

Data Security

With respect to data security, every business must implement reasonable security measures to protect its customers’ data and make sure that any third party that handles customer data does the same. As evidenced by the recent legal woes of corporate giants like Sony and Citibank, the failure to do so can result in costly legal fees.

Should your company fall victim to a security breach, you also have certain obligations as well. For instance, most states have laws that require customers and certain government agencies be notified in the event that customer information is compromised.

How We Can Help

If you want to safeguard your business from liability for a customer data breach, it is imperative to consult with an experienced business attorney. Our firm can help you achieve your business goals, while also minimizing your liability. Contact us today at 832.510.2900 or click here to contact our office online.

 

 

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