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What is data protection and why is it important?

What is data protection and why is it important?

Data Protection

Data protection is the act of protecting the key data a company collects from its employees, customers and suppliers. The company collecting the data is liable to keep it safe. The organization or entity collecting the data is obliged to follow proper data protection steps to keep the sensitive information safe.

Importance of Data Protection

Data protection is necessary because the information falling into wrong hands might cause serious problems to companies, employees and the business. Let us explore the devastating results of careless data protection through some well-known examples.

  1. Equinox lost the data of about thousands of customers to hackers. The reputation of the company was highly compromised and some high-profile clients chose to use their competitor services.
  2. The stolen data was sold on the black market creating fake identities for legitimate people. Certain people faced unscrupulous charges like marrying and abandoning a person in another country when they never left their home country.
  3. The stolen data was used by the terrorists to create fake passports and travel to various countries in the cover of common citizens and commit numerous crimes.
  4. Failing to protect the data of customers and employees made Equinox face various lawsuits which were settled with expensive monetary compensations.
  5. Many talented employees were scouted by the competitors because they got the core details about them through the breach. They offered undeniable packages for the employees customized on their need to quit Equinox and join their firm.

All these five points stress how a big company like Equinox faces major issues due to lack of data protection. Small entrepreneurs and start-up companies are at a high risk of facing more severe issues when it comes to data protection.

Even the core details about the company like their license details can be stolen easily and duplicated to create fake, low-quality products in the market. Besides, the start-ups or the small companies will take a major financial blow if the lawsuits they face claim huge monetary compensations.

It is better to invest in trusted data protection methods rather than worry about missing the opportunity later. The government had given strict guidelines on how to protect data in a specific way to protect the privacy of the companies and the people dealing with them. Following those rules properly will eliminate most of the data protection issues or data breaches.

How to Protect the Data?

  1. The first and foremost way to protect data is to educate all the employees and create awareness about the importance of data protection among them.
  2. The employees should not be allowed to bring in any type of data copying device like a mobile phone or a USB disk or a flash drive into the company premises.
  3. All the data regarding customers, payroll, projects, employees, suppliers and company details should be stored in proper systems with required passwords and multi-step authentication.
  4. Only the concerned party or specific employee should have access to open, view and edit the data. The employees should work in a specific area under the surveillance of the CCTV camera.
  5. No other third-party person should be given access to the data. Employees should log in with their password or biometric verification or company identity card. They should be strictly prohibited from sharing this data with any other person.
  6. The backup of the files should be stored properly in the company server. Proper malware and virus protection software should be installed in each system the employees are handling.
  7. There are special data protection services which design dedicated software for firms based on their tailored needs. They provide extra support for the backup, cloud storage and check the authentication of the person accessing the files multiple times.
  8. People who are handling the data entry and have the access to view the key data in the company should be given regular training regarding the various data breaches. They should always stay updated on how to keep the data safe using various tools like advanced password generation software.
  9. Investing in protecting the core details of the company is great but not sufficient. The employees should know what to do in case there is a breach or a hack, whom to report and what actions to take immediately to protect the untouched data.
  10. Shutting down the system, using encryption codes to mask data if they suspect a hack, and notifying the concerned parties regarding the occurrence of a data breach are also their main duties.
  11. It is wise to appoint a data security manager in huge and mid-level firms who is well-trained in data protection steps, is capable of educating other employees regarding the same, and acts swiftly in case of a data breach.
  12. Data protection is not only digital. Employees must be notified to shred all the important documents with their data or customer data regularly.
  13. Every person in the company should be trained not to disclose any major information about the project or the core details of the company to others.
  14. The customers should be duly notified not to share the details of the company like bill number, license number, etc. They should also be advised to keep their dealings with the company private and dispose of covers and documents with key contact details in an appropriate way.
  15. Third-party people like visitors should not be allowed into the company premises where the data is stored for unwanted reasons. The systems should not be left unattended for a long time in any case. Check the identity of the third-party person on Nuwber before allowing them to do maintenance or other important work in the company.


Following these key rules and regulations for data protection will help any company protect itself from the major headache of a data breach. Taking proper data protection measures helps the company to stay safe, keep its data secure and improve its reputation among the customers and clients. Adhering to the data protection laws will save ample time and losses that might be caused due to data breaches.

Also Read: 5 Free Online Deed Forms You Can’t-Miss

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