Many companies handle private information on a daily basis during their normal operations. However, if they don’t employ data destruction services when disposing of outdated electronics or old files, that sensitive information risks falling into the wrong hands. Here are four consequences of not destroying data for businesses.
Helps Prevent Fraud
If confidential data leaks out because a company did not engage in certified data destruction, it could lead to a variety of criminal activities. For example, if sensitive employee data is lost, individuals could take advantage of the information to profit from fraud or cause identity theft. Alternatively, your opposition could utilize the lost data with extensive phishing expeditions. As demonstrated, there are numerous opportunities for criminals and individuals with bad intentions to use your company’s information if it is not properly destroyed.
Regulatory Fines
The most damaging danger of improper data security is the costly fines. Companies have a legal duty to destroy data under various laws and regulations, and failure to do so can result in expensive fees. For instance, the General Data Protection Regulation, shortened to GDPR, was enacted by the EU to protect its citizens.
Many other parts of the world have data privacy regulations similar to the GDPR, as do particular industries. The Health Insurance Portability and Accountability Act of 1996, known as HIPAA, was created to ensure the safety of sensitive patient information in the healthcare industry. Additionally, financial institutions have many data protection rules of their own to follow, and if any of them are violated, the resulting fine will cause them to lose a considerable amount of money.
Civil Lawsuits
Companies won’t just face fines from the government if they fail to employ certified data destruction; their clients, both current and former, can also issue civil lawsuits against them. Discarding unused electronics is dangerous if an individual’s personal information, such as their social security or banking passwords, is still on it. If this information is ever leaked due to improper data security measures, then those clients have a right to sue companies.
Loss of Trust
After a company sustains either a regulatory fine or civil lawsuit due to the absence of certified data destruction, its reputation can suffer considerably. Potential clients will be less likely to place their trust in a company that does not take data security seriously; nobody wants to lose data and have their sensitive information fall into the wrong hands. Therefore, clients will not want to place their old electronics in the care of a company that does not dispose of valuable data properly.
The decline in customers caused by the loss of confidential data can lead to the failure of a business; customers will find other companies to entrust their confidential information. Eventually, the company that lets data leak due to improper data security practices will lose its revenue and eventually lose its business. To prevent the employees at your company from losing their jobs, ensure that data is disposed of correctly.
If your company needs certified data destruction and hard drive shredding in PA, contact Keystone Technology Management today!