What Steps Should Companies Take to Protect Customer Data?

To protect customer data effectively, companies must adopt a structured and thoughtful approach that prioritises both legal compliance and the trust of their users. This means going beyond box-ticking exercises and embedding data protection into the heart of their operations.

A good starting point is understanding exactly what customer data is being collected, where it is stored, and why it is needed. Businesses should critically assess whether each piece of data they gather is essential. If it isn’t, it shouldn’t be collected. Regular audits of data holdings help ensure that outdated or unnecessary information is securely deleted, reducing risk exposure.

Once the data is in your systems, protecting it during both storage and transmission becomes essential. This involves using robust encryption standards and ensuring that backups are not only regular and reliable, but also encrypted and stored in locations that are inaccessible to unauthorised users. 

Another crucial step is tightly managing who within the organisation can access customer data. Access should be limited strictly to those who need it for their role. When an employee changes jobs or leaves, their access should be removed immediately. Businesses must also implement strong authentication controls, such as multi-factor authentication and secure password policies, to reduce the likelihood of internal and external breaches.

Data protection is not a one-off project but an ongoing responsibility. Systems should be continuously monitored for suspicious activity, and companies must maintain clear records of access and incidents. Regular security testing, including penetration testing and risk reviews, helps organisations stay one step ahead of potential threats.

For added resilience, techniques like anonymisation and pseudonymisation can help limit the impact of a breach, by ensuring individuals are not easily identifiable even if data is exposed. These approaches, along with a “privacy by design” mindset, should be embedded into product development and operational workflows from the outset.

Finally, transparency is key. Customers must be informed, in clear and simple language, about what data is being collected and how it is used. Companies should offer easy-to-use tools for managing consent and ensure that privacy policies are regularly reviewed and updated to reflect current practices and legal requirements.