Data security has never been more important than it is today. This is especially true for companies that handle sensitive customer data. The General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) have changed the way businesses approach protecting customer data by mandating that they do so in a way that meets or exceeds industry standards. However, there’s an even simpler reason why you should use identity verification software — it works.
Identifying fraud costs companies billions of dollars a year
Identity verification software can help you identify and prevent fraud. The cost of identity theft is $15 billion annually, and the average data breach costs a company $3.5 million in direct costs alone to recover from it. The indirect costs include loss of customer trust, increased business risk, and reputation damage.
Using an identity verification solution can help you reduce your risk of a data breach by identifying risks before they happen so that you can mitigate them before they cause irreparable damage to your company’s security or financial health.
Compliance is essential in the age of the GDPR and CCPA
If you’re a business owner, the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) are two regulations that you should be aware of. Both were passed in 2018 and require companies to be transparent about how they use customer data and establish processes for verifying their identity.
These laws mean it’s more important than ever for companies to have a process for verifying the identities of their customers. If a company fails to comply with these regulations, it could face fines of up to 4% of its global annual turnover or 20 million euros (whichever is greater). These penalties will only continue to increase as time passes and more countries enact similar legislation, meaning that those who fail such compliance efforts could find themselves facing serious financial consequences down the road if they aren’t careful about creating these processes now.
Your customers want you to protect their data
Consumers are more likely to do business with companies that protect their personal data. Most consumers will only continue doing business with companies they trust, which means businesses must treat customers’ private information as if it were their own.
Your customers are more likely to recommend your brand if they feel you treat them as individuals, not just another customer.
Protecting your customers is good business sense in the age of social media
In today’s world, customers are more aware of how their data is used by businesses. They are also much less trusting of companies that do not have strict policies regarding the protection and privacy of their information.
This means that by protecting your customers’ data you will be better positioned to retain them over time because you will be viewed as being honest, trustworthy, and safe in handling people’s sensitive information. Protecting your customer’s identity is also a good business sense in the age of social media where bad experiences can quickly spread across Facebook and Twitter like wildfire.
Fraudsters are smart and sophisticated
Fraudsters are becoming more sophisticated, and they’re using new tools and techniques to steal data. This means that business owners need to stay on their toes when it comes to protecting their data, but it also means that fraudsters are harder to catch than ever before.
The truth is that fraudsters are always on the lookout for ways of stealing information from businesses. But now that hackers have more sophisticated tools at their disposal (like machine learning) and better access to information about the companies they’re targeting, detecting fraudulent activity is becoming more challenging than ever before.
Know your company’s obligations and responsibilities as a data controller
Data controllers are responsible for the personal data they process. They determine the purposes and means of processing personal data. Data processors, on the other hand, are only involved in processing personal data on behalf of a controller. The two parties have different obligations and responsibilities while working together:
- The controller has to ensure that it has appropriate security measures in place as well as keep documentation about its use of personal data within its organization.
- The processor must also ensure that it has appropriate security measures in place but does not need to keep documentation about its use of personal data within its organization.
Protecting your customers is good business sense in the age of social media. The world has changed, and so must your approach to fraud protection. It’s time to invest in identity verification software that can protect your customers and reduce the risk of data breaches.