Data is a valuable asset, and in today’s digital economy, gathering and sharing data has become inevitable. And with cloud-based solutions becoming the preferred model for data storage, the need to secure data has only amplified. However, for a company to benefit from the data it collects, it must ensure that it is fully secured and not subject to unwanted surveillance.
As corporations amass more significant amounts of data on their consumers, those customers have begun to recognize the potential drawbacks of this data collection. As a result, data protection and privacy are more important than ever before, and businesses should pay close attention to their data protection regulations and privacy policies and processes for various reasons.
Before complying with the data security regulations, one must understand what kind of data they own and which compliance to choose. For example, businesses pertaining to the healthcare industry must choose the compliance policy accordingly and follow the industry best practices to comply with them.
Governments and professional organizations are developing regulatory guidelines worldwide to avoid data breaches and exploitation of consumer data. HIPAA, GDPR, CCPA, and SOC 2 are currently some of the most important rules and regulations.
Businesses need robust data protection policies and laws that prevent ransomware assaults at the enterprise level, supply chain hacks, and crypto-jacking cloud-server databases. But unfortunately, data breaches are getting sophisticated with dynamic, detection-evasive exploits. At least once a week, new tales regarding data breaches appear. For example, Marriott revealed in March 2020 that a data breach had exposed the personal information of 5.2 million users. At least eight million credit card numbers and five million unencrypted passport numbers were among the data.
Learning the compliance standards and principles related to the industry will reduce the risk profile for businesses.
HIPAA or Health Insurance Portability and Accountability Act is a data protection USA policy. It has various privacy and security requirements to safeguard medical patients’ personal information. Businesses or Companies associated with the healthcare industry, such as healthcare providers, insurance companies, or vendors, must follow physical, administrative, and technical measures to protect data.
End-to-end encryption hides data as it travels from a database to its final destination. With field-level encryption, several top data protection services meet these criteria. Data is encrypted at the field level before entering the pipeline using field-level encryption. The information isn’t encrypted until it reaches its desired target, like another healthcare service’s database or an analytics platform that helps medical researchers identify health trends can lead to better diagnostics and health outcomes. This type of compliance is used in western countries where the country’s government ultimately governs the healthcare system. Each data is highly confidential and protected.
Any healthcare organization can comply with HIPAA guidelines by implementing these data protection and security policies and programs. In addition, the data is so highly encrypted at the field level that not even the administrators can see it as it goes from one place to another.
The American Institute of CPAs (AICPA) established SOC 2, the data protection law in the US, to protect individuals’ data who engage CPAs and other accountants. The standard also applies to financial institutions’ data centers, analytics providers, SaaS providers, and document creators.
Compliance with SOC 2 entails:
Many of the best data protection solutions follow SOC 2 standards, which allow financial institutions and CPAs to transport, modify, and load data without revealing personal information to other parties.
With the increase in contactless transactions and digitalization, the Payment Card Industry Data Security Standards (PCI-DSS) has brought in enhanced safeguards to protect sensitive Personal Identifiable Information (PII) such as credit card and debit card pins. However, PCI-DSS is not maintained by any government like HIPAA. Instead, PCI-DSS is managed by the PCI-DSS council itself established in 2006.
The main objective is to protect the cardholders’ data and build a secure transaction network. There are various levels of PCI-DSS compliances and two validation processes for any merchant to go through for adapting PCI-DSS.
SISA offers all of the compliance services under PCI-DSS compliance and helps the organization maintain the compliance policy and procedures. The PCI compliance journey with SISA has four stages such as:
GDPR or General Data Protection Regulation of the European Union, implemented in 2016, is similar to PCI-DSS is many ways but broader in scope. Therefore, any organization that collects customer data should consent to manage them. If the collected data is used for any other purpose than mentioned, that will be considered non-compliance.
The individuals whose collected data are subjected to know why it’s being collected and how it’s processed and where it is used. They have all the right to object and correct the data at any point.
The GDPR strives to provide EU citizens more control over their data, although slightly different than the CCPA. The following are some of the GDPR’s important points:
Every year, non-compliance with regulatory standards costs billions of dollars to businesses worldwide. As data laws and regulations get more stringent, organizations must ensure compliance. The losses are not confined to penalties and fines. Non-compliant firms face significant security risks, lost productivity, damaged reputation, and other issues.
Non-compliance is predicted to be more than three times more expensive than compliance. Therefore, non-compliance occurrence might cost a lot to organizations. Consequently, it is imperative to take non-compliance seriously and take the necessary steps. Here’s a rundown of the penalties you’re likely to face if you don’t follow the rules.
To limit security breaches, businesses are obligated by law to follow privacy and data protection compliance standards. Any failure will result in the following legal ramifications.
Sometimes, business ramifications of non-compliance may not have direct monetary costs, but the damage might be extensive. The following are some of the most prominent business consequences:
Non-compliance also increases the risk of data breaches, which can damage a brand’s reputation. In addition, stock prices drop, and customers depart when data breaches occur. According to some studies, a successful cyberattack can cost up to 25% of its market share. Customers are hesitant to do business with the organization because they are concerned about identity theft. It’s much worse if they believe an enterprise placed their information at risk on purpose.
Here are the individual effects of non-compliance to the most prominent data protection acts specified above.
The Office of Civil Rights (OCR) and the US Department of Health and Human Services handle civil infractions under HIPAA. HIPAA also sets a framework for sanctioning criminal behavior; however, the Department of Justice is in charge of enforcing those sanctions.
OCR will usually provide you the option to adapt your system to their criteria to comply with HIPAA. However, civil penalties may be imposed on organizations that do not resolve their issues.
Financial penalties and jail may be imposed for violations of HIPAA regulations. In addition, if you infringe HIPAA guidelines on purpose, you might face fines of up to $50,000 and a year in prison.
Violations of HIPAA regulations can result in fines of up to $50,000 and a year in prison. In addition, pretenses violations, such as lying to patients about privacy protection, can result in fines of up to $100,000 and up to five years in jail.
Violating HIPAA laws with an intent to profit will end in the worst punishment, that is, a penalty of $250,000 and ten years of imprisonment.
While there are no official consequences for failing to comply with SOC 2 requirements, a SOC 2 audit might expose risks that CPAs, financial institutions, and vendors must resolve. In addition, if an audit reveals a vulnerability, you’re more likely to have data breaches, which can damage your brand.
Compliance with SOC 2 can also help you avoid data breaches, resulting in settlements, lawsuits, and legal fines. For example, data breaches at Yahoo! Inc. cost the business $117 million in a class-action lawsuit between 2012 and 2016.
SISA has provided the compliance policy and maintained and adhered to it with over 2000 customers in 40 plus countries.
Any non-compliance in PCI-DSS can result in fines to the acquiring bank ranging from $5000 – 100,000 per month.
If any data breach from the bank or merchant becomes available to the public, indirect costs will also be added to the bank. In such cases, banks can even lose the right to accept cards anymore.
The GDPR contains two levels of penalties. First, the penalty amount is determined by how you violate GDPR.
The first tier will set you back €10 million, or 2% of your company’s yearly global turnover (whichever is higher). This penalty is imposed on businesses that do not:
The second tier will set you back €20 million, or 4% of your yearly global turnover (whichever is higher). Companies who do not comply with the following are subject to a more significant penalty:
GDPR, like the CCPA, allows citizens to sue you for damages.
Developing appropriate policies to control data and other security measures is usually the first step in ensuring compliance. Businesses can reduce the dangers to their IT infrastructure by applying these policies.
Moreover, compliance should be an ongoing process. An organization must continually assess the regulatory requirements that govern its operations and close any gaps in compliance.
They can avoid fines and penalties by demonstrating a solid commitment to compliance, as well as improving your organization’s overall security posture.
Choosing a top data protection service provider will help enterprises understand –
Opt for a data protection solution that offers:
Depending on the industry and need, it is recommended to get compliant with:
In the past year, especially after the COVID pandemic, data security has become a top priority for businesses of all sizes. Today, personal data breaches happen on a routine basis. From major credit card companies to entertainment giants, every industry is vulnerable to attacks from hackers and other malicious parties.
More and more government organizations enforce harsher laws to protect their sensitive information. However, even in the absence of government or professional regulation, businesses must start considering data security as one of their topmost priorities and invest in data protection platforms to strengthen cyber defences.