Why Data Security Compliance is Essential for Online Retailers

Featured article by Stephanie Charles, Independent Technology Author

With the GDPR coming into effect across the EU, it is now the perfect time for businesses to revise their cybersecurity arrangements to ensure compliance. Compliance with regulations is essential in order to both avoid legal issues and to protect a business’ assets and reputation.

Consumer Trust

There have been a number of high-profile data breaches over the last couple of decades. These breaches have varied in their severity and their sophistication, but in every case, they have been damaging to consumer trust. When Sony was hacked several years ago, sensitive customer information was compromised. For a time after the incident, there was continuing negative buzz surrounding Sony and their network security.

Ashley Maddison, a dating website designed to facilitate extra-marital affairs, was hacked, resulting in reams of sensitive customer data being stolen. The incident highlighted how vulnerable sensitive data can be – it was highly publicized in the media and contributed to the current climate whereby consumers are much more demanding regarding cybersecurity.

Liability

If sensitive customer data, such as credit card information, falls into the wrong hands because of poor security policies on your part, you could find yourself being held liable. It is this potential liability in particular which has provided the impetus for businesses to start taking their cybersecurity more seriously. From online retailers to online casinos, fear of liability is encouraging businesses to improve their online security and to offer their customers other options. An increasing number of services allow customers to fund their accounts using virtual currencies or credits, which can be purchased elsewhere.

Protecting Your Reputation

If your business is hacked, it will be damaging to your reputation. If the hack occurs because you have been negligent, the damage to your reputation will likely be even worse. You do not want to develop a reputation as a business that either doesn’t take its cybersecurity seriously or which lacks the necessary skills to improve their security.

Investing in protecting your website is an investment in protecting your reputation. You should, therefore, see it as a worthwhile expense. Don’t risk your reputation by becoming complacent with your digital security.

Remaining Competitive

If your business suffers a major data breach, one of the most likely consequences of this will be your competitors noticing an uptick in their business. Ultimately, the online retailer who manages to remain free of data breaches and other similar incidents will be the preferred choice for most consumers. If you want to be able to seriously compete in your field, you should never underestimate the damage that a data breach could do to your reputation.

Protect Your Value

If your business suffers a serious data breach, you can expect a dip in consumer confidence and, therefore, a dip in your company’s value. Your brands are among your most valuable assets. You need to protect them with the best security that you can afford. You wouldn’t want an intruder to be able to access your business physically and root around your records, so don’t let them do so online!

Ensuring that businesses remain compliant with data regulations is essential to protect their reputations, and to avoid the inevitable legal consequences of not securing their data.