The Future of Customer Security and Data Privacy

5 minute read, posted on 05/26/2021, by VXI Marketing

VXI Global Solutions Customer Security and Data Privacy

As the world recuperates from the after-effects of COVID-19, operations and businesses are finding ways to stretch themselves towards recovery. Since the outbreak has threatened millions of lives and livelihoods, organizations must continue to push forward and brace their holistic plans for the future, and in the same breath consider customer security and data privacy as transactions move online.

As most of the transactions shifted online and employees’ welfare became paramount, errands over the internet and working-at-home became the new norm in 2020 and 2021. Through social media, e-mail, messaging apps, and web conferencing, you can connect to someone in an instant. With just a click away, you can pay your bills and shop for your needs with the help of e-commerce. Advanced analytics software Statistica, reported a 16% increase in sales in the US around Q2 of 2020. In other parts of the world such as the UK, nearly a third of all retail sales in the UK increased in May 2020. The e-commerce sector grew massively in the Asia-Pacific region with a whopping $2,448.33 billion sales forecast compared to North America, Europe, Latin America, Middle East, and Africa.

While digital and high-technology tools and functions are appreciated for providing convenience and efficiency for both the consumers and companies, it is also important to consider the threat that was most talked about in 2020: customer security and data privacy.

Data privacy is not just proper handling of data, it also centers around the public expectation of privacy, in compliance with protection and regulations. Information is made available almost everywhere. We can even save our information anywhere and anyhow we like. Although organizations have been keen on privacy practices and policies, customer security and data privacy are still ever-changing battles with frauds faced by customers every single day. Here are five important things you need to know about the future of customer security and data privacy, as predicted by Forrester.

  • The Rise in Privacy Legislation and Standards

It was predicted by Gartner that by 2023, 65% of the world will have personal data covered under modern privacy regulations. More than 60 jurisdictions have enacted or proposed postmodern privacy and data protection laws in the US. The California Consumer Privacy Act (CCPA) applies to companies who are collecting the personal information of 50,000 or more consumers and these consumers have the right to request a copy of their data or have their information deleted. Latin America also started the Brazilian General Data Protection Law, also known as Lei Geral de Proteção de Dados Pessoais (LGPD) in September 2020. It intends to protect the information of 140 million internet users. Other data privacy initiatives from emerging countries in ASEAN regions such as Singapore, the Philippines, and Malaysia are also currently being harmonized.

  • Expect More Privacy Lawsuits

The proliferation of the internet and social media usage displayed a wide concern in data collection and surveillance. Laws protecting individuals’ privacy and personal data have been established since 1988. These laws apply to most especially in recent technologies such as web experiences, advertising, marketing, social media, geolocation, and biometrics.

Most of the privacy claims are not limited to situations within these technologies that may cause embarrassment, harassment, surveillance, or financial harm to customers. Moreover, these laws aim to protect what one might do with the information without full disclosure of its liability and intent.

  • With More Insider Threats Comes More Opportunities

With the surge of the world health crisis, employers are mandated to provide work at home opportunities to their employees, which resulted in the relocation of office equipment, business clouds, and models. In line with this, security measures are heightened especially when it comes to sharing confidential information and organizations strengthened their privacy and IT departments to become watchdogs for internal security. Gartner forecasted a spike in opportunities by the year-end of 2022 with more than a million organizations appointing data protection officers.

  • Smarter, More Cautious Users

Increasing threats and numerous fraud risks continue to exist as hackers and lawbreakers take advantage of the current situation. With new ways of working and data being registered online, companies are more vulnerable to fraudulent attacks and criminal activities. For example, 47% of the individuals fall for a phishing scam while working at home. The London Police reported more than GBP 11 million loss due to COVID-19 scams since January 2020. In Switzerland, one out of seven survey respondents had experienced cyberattacks during the coronavirus.

54% of consumers have become more aware of data privacy now than before the pandemic. Even with the companies’ strong effort and warning against cyber threats, consumers are becoming overcautious and more concerned about how they share their personal details.

  • Development of Data Privacy Automation

With laws varying from one region to another, it is a challenge for companies to fully protect and follow the guidelines for customer security and data privacy. This needs automated technology that can adapt to the speed that laws and enforcement actions change by producing a well-documented audit trail, that manages not just compliance, but the flow of data throughout the entire organization. The trend in software and system development that will help automate data and secure privacy management is expected in 2021.

We might have faced a lot of challenges and adjusted to new functions for the past year. However, coronavirus has also taught us a lot in terms of resiliency, flexibility, and security. While we at VXI Global Holdings understand that working at home and virtual communication is here to stay. Our commitment to data security extends to adapting and adhering to the rapid changes because customer security and data privacy are our topmost priorities.

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