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What is Data Privacy and Why Does it Matter to Online Businesses?

The widespread availability of the internet has improved communication. It has transformed our lives. From office meetings to transactions, everything is taking place online these days.

Suppose you’re a Spectrum user living in Missouri. You receive a message from the provider that your bill payment is due. Do you visit Spectrum customer service Missouri or simply pay your bill online? You’ll probably choose the latter. It is worth mentioning that the provider has access to your information like name, address, and credit card number. Protecting this information is extremely important since cybercriminals are consequently on the hunt for valuable data and information. They do not discriminate when it comes to small individuals, small businesses, and large enterprises. That is why data privacy and protection are of immense importance in today’s digital age.  

What Is Data Privacy? 

Data privacy is the proper handling of sensitive data. It is a major component of data protection. Data privacy refers to the guidelines that companies follow when it comes to collecting, storing, managing, and sharing data. Moreover, it has to do with ensuring compliance with a country’s privacy laws. In all, data privacy has three elements. They are:  

  • The process of collecting, storing, managing, and sharing data  
  • Ensuring compliance with cyber privacy laws  
  • Right of users to maintain control over private information  

Why Data Privacy Matters? 

The importance of safeguarding valuable data cannot be overstated in this digital age. Companies around the world collect important data and information to improve the customer service experience. A data breach can expose a business to multiple risks such as loss of intellectual property and consumer trust. That is why businesses put a lot of resources and effort into protecting valuable information.  Below are the risky impacts of data breach: 

Data Breach Can Impact Business Revenue 

Sales are a vital component that keeps a business running. Large businesses spend millions on marketing campaigns to boost sales. A data breach can hurt sales revenue. A retailer targeted by cybercriminals could lose both client and company information. Cybercriminals could use the information to blackmail users whose data they stole. This could seriously impact the business.  

It would take time for the affected retailer to recover from the loss. The owner might not even bounce back from the loss due to a data breach. Moreover, customers would be reluctant to purchase goods and products from the affected retailer. Investing in data privacy and protection can prevent online businesses from computer criminals.  

Lead to Massive Fines 

Governments around the world are introducing stiff privacy laws to protect valuable data and information. Though privacy laws vary by country, many states have introduced strict policies against businesses that do not comply with privacy laws. Companies that do not adhere to data privacy laws face tremendous consequences. They risk losing valuable information in addition to inviting heavy fines from the authorities.  

It is advisable to invest in data privacy and security solutions to protect your business from cyberattacks and fines. A data breach can create multiple problems for your business. Irate customers may sue you and you might end up paying millions of dollars in damages and compensation. It is worth mentioning that all this would come in addition to the fines you’d have to pay to the authorities.  

Ruin Brand Reputation 

Maintaining your brand reputation is crucial to retaining customers. Businesses targeted by computer criminals risk losing their customers and damaging their reputation. Long gone are the days when businesses cared less about transparency and image. The world of today is entirely different from what it was several decades ago.  

In today’s hypercompetitive age, businesses cannot afford to let anything cause a dent in their reputation. They know that transparency is key to ensuring growth and success for years to come. That is why they invest a great deal of money and time into building their brand image. Companies that don’t play safe usually end up losing everything they have.  

Eliminate Businesses from the Race

We’re living in an age where businesses are engaged in cutthroat competition with each other. Any ill-timed strategy can be the downfall. Brands are extremely cautious when it comes to data privacy and security. They understand the consequences of the data breach. Businesses know that if they do not invest in data safety measures, they might end up getting eliminated from the competition.  

The key is to adopt data privacy and security measures to prevent cyberattacks. Technology has become much more advanced and so have become its users.

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