Data Security: What is the Importance of This Investment for Your Company?

Data security, also known as information security, is a crucial way to safeguard sensitive information from clients, employees, suppliers, and the company as a whole.

Besides preventing losses or virtual threats, data security has become a key concern for businesses. As the use of digital information has become essential for marketing strategies, the emergence of specific laws has placed companies on alert.

With the rise of e-commerce and the rapid growth of the online marketplace, the General Data Protection Law (LGPD) has raised questions when building an online presence. At the same time, this concern is no longer optional for companies but a mandatory requirement.

To help you understand how data security has become a priority in both commercial and government institutions in the country, keep reading! We will cover the importance of this protection in the following text.

What Is Data Security and Its Basic Concepts

In short, data security involves actions to protect the information of individuals and businesses, which you already understand, right?

This data is so protected because it is one of the most important assets of a business, whether the company is small or large. It is part of the strategies that make up the organization's competitive edge.

A coherent and well-executed information security strategy ensures that this data is protected and prevents it from being accessed by unauthorized individuals.

Here’s how crucial it is to have a strong strategy: a survey conducted by Apura Cybersecurity Intelligence revealed that with the increased internet use during the Covid-19 pandemic, data theft also rose.

They recorded the leakage of 958,000 CPF numbers, 592,000 international credit cards, 262,000 national credit cards, and 220 million access credentials—a total of 272 million threats identified. A major breach of data confidentiality, highlighting the importance of data security in companies.

Moreover, these strategies are built around four basic concepts to secure documents, files, and information within a company.

Confidentiality This first pillar ensures that data access is restricted to authorized individuals or the owner. In other words, companies are prohibited from allowing outsiders to access confidential information or disclose it without written permission from the owner.

Confidentiality in information security does not rely on hiding or keeping data secret.

Integrity This concept requires that information be kept in its original form, preventing unauthorized alterations or tampering. If changes are needed, they must be thoroughly documented with details such as date, time, and the responsible individual.

Files should be secured to maintain data integrity. If a file is damaged, it is no longer intact, regardless of whether the alteration was caused by internal or external actions. Technical failures also need to be addressed to ensure data security, and backups can offer further protection.

Availability This concept ensures that only authorized individuals can access data when needed, using a secure and effective system.

Authenticity Similar to integrity, authenticity ensures that the document or source is genuine, valid, and accurate. This concept prevents unauthorized data changes, particularly in digital processes like payroll generation or contract signing.

The Importance of Data Security in Companies Regardless of size or industry, all companies are constantly exposed to online threats, including data theft, malicious actions, and fraud.

Such vulnerabilities can disrupt internal processes, financially damage the company, and harm its marketing and branding efforts, making all business areas more exposed.

Brazil is particularly vulnerable to cybercriminal actions, ranking second globally in cybercrime incidents, behind only China. Therefore, extra caution is necessary.

Whether you run a large corporation or a small business, staying up to date on how to secure your company's data is essential.

Consequences of Lacking Cybersecurity The risk of data breaches is real! Many cases involve highly sensitive data leaks, and inadequate or insufficient security measures often make it easier for criminals to access third-party information.

To keep your company’s data secure, it’s essential to know who controls your data and to monitor your information.

Here are some potential consequences of data breaches:

• Confidential business strategies and key information become public;
• Financial transactions may be compromised, exposing sensitive banking data to third parties;
• The company’s reputation and credibility are at risk, especially if third-party harm occurs;
• The company may appear negligent in the market;
• Significant financial losses may result.

Clearly, it’s critical to ensure data protection through robust security strategies.

The Impact of the General Data Protection Law (LGPD) Enacted in 2018 and enforced since 2021, the LGPD aims to ensure the freedom and privacy of customers through the protection of their personal information.

To comply with this law, businesses and public entities must change how they collect, store, and use consumer data. Important data to safeguard include:

• Identification numbers;
• Address;
• Racial background;
• Political or religious affiliations;
• Genetic information (e.g., biometrics);
• Sexual orientation, among others.

Initially, there was a noticeable impact on administrative processes and marketing efforts. Failure to comply with the LGPD could result in fines of up to R$50 million per violation or 2% of the company’s total revenue.

Thus, adapting to these new regulations should be a top priority for any business owner.

Why Invest in Data Security? With the LGPD in full effect and severe penalties for non-compliance, it's even more important to understand the benefits of investing in data security strategies.

Here are some key advantages:

• Prevents theft, loss, and damage in systems and networks;
• Improves data management and productivity;
• Prevents confidential information leaks;
• Enhances credibility and customer satisfaction;
• Improves market reputation;
• Increases competitiveness;
• Reduces financial losses.

How to Improve Data Security for Your Company You’ve likely realized that protecting your company’s data is crucial for smooth operations and long-term success.

To ensure data security and achieve positive, safe results for your business, follow these steps:

1. Invest in Employee Training If your employees handle sensitive customer data, it’s essential to provide the necessary tools and knowledge for proper information security.

This ensures that the team understands what needs to be done, the benefits of security measures, and the best ways to minimize risks.

2. Identify Your Company’s Weak Points Ensuring data security and the effectiveness of protection measures is crucial. Therefore, it’s essential to identify your company’s biggest vulnerabilities.

Common security gaps in IT infrastructure include:

• Poorly configured software;
• Outdated systems;
• Weak code quality;
• Poor data validation;
• Underdeveloped system configurations;
• Unsafe practices.

Once these weaknesses are identified, IT professionals can implement monitoring strategies, smarter software updates, continuous backup processes, and instruct employees on avoiding practices that threaten company security.

3. Invest in Protection Tools There are various digital solutions incorporating AI and other mechanisms available. These can help identify suspicious activities.

Encryption software, tokenization, and other security tools such as Data Discovery, Data Mapping, machine learning, Big Data, and Data Loss Prevention (DLP) are great resources to protect internal information.

Get to Know BugHunt’s Services! To ensure there are no vulnerabilities in your company's systems, BugHunt is here to help!

By partnering with BugHunt, Brazil’s first Bug Bounty platform, your company will have specialists constantly analyzing its systems for vulnerabilities, anticipating potential cyberattacks.

Want to learn more about our program and how we can help secure your company’s data? Click here and contact us!