How Commerce Technology is Shaping Data Security for Businesses
For commerce-driven businesses, ensuring the security of the customer data they collect is vital and has become a cornerstone of modern business practices. Not only do business leaders have a responsibility to protect (sensitive) information, but they also must comply with regulations, meet customer expectations, defend against cyber threats, manage supply chain risks and ensure the continuity of operations. While the technical and organizational measures leaders take may vary, the end goal is to ensure the privacy and confidentiality of data, as the consequences of neglecting data security can be severe.
With hundreds of businesses using commercetools to support their digital commerce operations, the data of millions of people a day runs through our technology. As such, we put a large focus on information security, which encompasses the entire end-to-end flow of data. As an extension of information security, data security, which refers to the physical protection of data, encryption of data in storage and data remanence, is of critical importance.?
Part of my responsibilities as co-Founder and Chief Operating Officer of commercetools is ensuring we are trustworthy custodians of our customer’s data — our success is dependent on it. I constantly monitor our systems, keeping up with the ever-evolving cybersecurity landscape and compliance requirements. As a result, I’ve become the go-to expert in data security.?
Why having a robust cybersecurity strategy is so important right now
With data breaches at major brands such as Apple, Twitter, PayPal and MailChimp making headlines this year, more and more businesses are starting to ramp up their cybersecurity efforts. Here are a few reasons why this is so important:?
Numerous data protection laws and regulations have been established globally, such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States. Businesses that fail to comply with these regulations can face significant fines and legal consequences.
As technology advances, so do the capabilities of cybercriminals. The threat landscape is constantly evolving and the attacks are becoming increasingly sophisticated. A business's best defense is to have robust data security measures and monitoring in place to defend against these threats.
A data breach or cyberattack can disrupt business operations, leading to downtime which ultimately leads to lost revenue. Data security measures, such as backup systems and disaster recovery plans, are essential for maintaining business continuity.
A data breach can result in significant reputational damage that is often difficult to repair. Customers may take their business elsewhere, and the negative publicity can have long-lasting effects.
It’s critical that business leaders understand the critical role their commerce technology, i.e. their eCommerce platform, plays in supporting the security of their customer data, including:?
Commerce technology often includes payment gateways that securely handle financial transactions. They should use encryption and tokenization to protect customer payment data, ensuring that sensitive information is not exposed during the transaction process.
These technologies employ encryption to protect data at rest and in transit. Customer data is encrypted when stored on servers and during transmission, making it extremely difficult for unauthorized parties to access or intercept.
Commerce technology enforces strict access controls. Only authorized personnel have access to sensitive customer data, reducing the risk of data breaches caused by insider threats or unauthorized access.
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These technologies should implement monitoring and alerting services to detect and respond to security incidents in real-time. This includes anomaly detection and threat intelligence to identify and mitigate potential threats promptly.
Best-in-class commerce technology should be designed as a data processor to adhere to relevant data protection regulations, such as the General Data Protection Regulation (GDPR) or the Payment Card Industry Data Security Standard (PCI DSS), ensuring that customer data can be handled in compliance with the law.
By offering these features and best practices, your commerce technology can create a secure environment for customer data, ensuring that information is protected from breaches and unauthorized access. However, having the right technology and software in place to minimize risk, maintain the security of customer data and prevent fraud is only part of the equation. You also need to foster a culture of security within your organization, continually monitoring the changing cybersecurity landscape and providing training to educate your team on the role they play in protecting customer data.?
Here are my top five strategies and best practices you can implement to protect customer data? and comply with privacy laws while delivering personalized customer experiences :
Establish clear data governance policies and practices within your organization. Ensure that all employees understand their roles and responsibilities in data protection.
Leverage technology solutions, such as advanced analytics or AI tools, to deliver personalized experiences without compromising data security or privacy.
Implement strong encryption techniques to protect data at rest and in transit. This includes encrypting data stored on databases and using secure communication channels (e.g., HTTPS) as well as a reliable key management system.
Enforce strict access controls to ensure that only authorized personnel have access to customer data. Implement role-based access control to limit permissions according to job roles. Strong authentication methods, such as multi-factor authentication (MFA), will add an additional layer of security.
Educate all employees about data security best practices and the importance of safeguarding customer data, which implies conducting regular training and awareness programs.
By following these strategies, you can demonstrate your commitment to data protection and compliance with privacy laws while still providing the personalized experiences that your customers desire. Achieving this balance requires ongoing vigilance, adaptability and a customer-centric approach to data handling and personalization.
Prioritizing data security is not only a matter of compliance or risk management but also a crucial factor in building and maintaining a successful eCommerce business. To create a level of loyalty that can support you in the long term, trust is fundamental. With effective data security measures in place, you can give your customers reassurance that their information is safe, and you can’t put a price on that.?
commercetools plays a key role in supporting the security efforts of our customers, and we have made it an integral part of our corporate strategy. To learn more about the framework of governance, risk management and compliance monitoring we’ve established to ensure we manage the data of our customers responsibly, download our white paper Information Security today.
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