The foundation of any thriving accounting firm or insurance agency is the trust that customers place in them. Trust is hard won after years of providing important services and taking care of their customers when they need them. These companies are trusted with a large volume of sensitive customer data. This, combined with the increasing number of data breaches and cyberattacks targeting specific industries, highlights the importance of securing customer data. Companies must securely store data and actively address cyber threats. This is the only way to preserve their customers’ trust and data.
Sensitive customer data at risk
Organizations like accounting firms and insurance agencies manage sensitive customer information daily. This can include personally identifiable information (PII) like social security numbers, health data, financial records and banking information, tax documents and payroll data, insurance policy details and claims data, and employee and vendor information. These organizations are also often subject to regulatory requirements for protecting their customers’ data, which makes it even more critical.
Common cyber threats facing organizations
While all companies and organizations face cybersecurity threats, organizations that handle sensitive customer information are at even greater risk. They can be targeted by cyber criminals because they know valuable information can be accessed. Common threats and vulnerabilities include:
-
Phishing and email-based attacks
-
Ransomware attacks targeting client files
-
Weak passwords and other employee vulnerabilities
-
Third party or vendor vulnerabilities
Best practices for securing customer data
By taking steps to protect and secure sensitive customer data, organizations can maintain their customers’ trust and comply with any applicable regulations.
Strengthen access controls
A key first step for organizations is to limit access to customer data so that only employees whose roles require it can view or use that information. Not all employees should have access to all customer data. Organizations should regularly conduct permission audits to ensure that sensitive data is accessed by as few employees as possible and there is no unintentional sharing of information.
Secure systems and networks
Organizations should require employees to utilize strong passwords and multi-factor authentication for their computer systems that store sensitive data. Computer systems should also be updated regularly to ensure that the most up-to-date security systems are installed. Where possible, sensitive data should be encrypted for storage and transmission.
Train employees regularly
It’s critical for employees to understand their role in protecting sensitive customer data. Organizations should provide regular training for employees on phishing and ransomware attacks and conduct simulated attacks to ensure employees are able to recognize possible phishing attempts. Employees should also be trained in the organization’s data handling policies, which should be clear and concise. If employees work at home, they should be trained in best practices for securing data in places other than the office.
What to do if a data breach occurs
Cyber criminals are persistent and unfortunately sometimes a data breach occurs despite an organization’s best efforts at preventing it. If this happens, prioritize communication. After taking immediate steps to contain the breach and assess what information was accessed, direct communication with affected customers is critical. Learn more about a crisis communication plan for after a data breach in this article. After an incident like this it’s important to reflect on why this happened and implement any changes needed to prevent another breach in the future.
Securing customer data is not a one-time task but an ongoing commitment that requires vigilance and continuous improvement. By implementing strong access controls, maintaining system security, training employees, and preparing for the possibility of breaches, organizations can create a culture of security that not only protects sensitive information but also builds long-term trust with clients. Remember, every small step toward enhancing cybersecurity can make a significant difference. Regularly assessing and updating data protection strategies ensures organizations are well-positioned to meet evolving threats and maintain customer confidence.
