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Data Privacy Policy: Consumers Trust In Organizations Diminished

The results of Veritas Technologies’ global research have revealed that consumers around the globe are less and less confident about data privacy policies held by companies and have issues with trusting the organizations to protect their personal information. With each new data leak and successful hacker attack their uncertainty grows, at a point where 38% of worldwide consumers are persuaded that most businesses don’t know how to protect their customer’s data.

 

Results also highlight that consumers want to penalize companies that are bad at protecting their data. On the other hand, companies that place a high value on data protection should be rewarded.

Consumers Trust iIn Organizations Diminished

 

In today’s competitive world, most worldwide companies need data to effectively target consumers with the right goods and services to deliver a better experience. But with the introduction of New strict compliance rules such as the EU GDPR, consumers will have more power over their data in the future. Many consumers will impose companies to better protect their personal data as they need reassurance when it comes to what personal data are companies holding, how it is used and how it is shared.

 

The new norm

 

data privacy gdpr

 

The study, commissioned by Veritas and conducted by 3GEM, surveyed 12,500 people in 14 countries including UAE. Results show that 92% of respondents are concerned about exposing personal data, 40% of respondents have no visibility into how their data is used and 83% are not satisfied with companies not knowing how to protect their data.

 

With the GDPR regulations, 65% of respondents says that they’ll request an access on their personal data that companies are holding and 71% will even ask them to delete their data.

 

Almost three quarters, 71%, of respondents say they will stop buying from a company that does not adequately protect their data. And nearly every second, 43%, would abandon its loyalty to a particular brand and switch towards a direct competitor. It can even be a worse scenario for companies because 79% say they would recommend their surroundings to boycott the organization in case of data breach and 87% claim they would report the business to regulators. 69% of respondents say they would post negative comments online about the business.

 

However, the survey also shows that good data protection pays off. So, consumers want to reward companies that protect well their data. Four in five respondents, 80%, say they would spend more money on companies they trust to guard their data. More than a quarter, 30%, of consumers are willing to spend up to 25% more on companies that take privacy seriously.

 

“Trust in consumers has been eroded by many data breaches and global scandals as companies have revealed a lack of understanding of data privacy protection,” said Tamzin Evershed, Senior Director and Global Data Protection Officer at Veritas. Consumers demand more transparency from companies and demand accountability from them. Under this new norm, consumers will reward those organizations that carefully manage data while punishing those who do not. Businesses need to prove themselves as reliable data managers in order to retain the trust of their customers.

 

Growing concerns about the collection of personal data

 

As consumer interest is rapidly growing in how personal data is used and shared by companies, the study shows that consumers are no longer prepared to share the following types of personal information:

 

  • Details about personal finance including income, mortgage (49%)
  • Details on health and medical records (24 percent)
  • Age and gender (29%)
  • Location (36%)
  • Online habits (35%)
  • Religious preferences (38 percent)

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In addition, consumer doubts about how their data is shared with companies and third parties. Nine out of ten respondents (89%) said they were worried about protecting their personal information. Almost half of the respondents (44%) say they have no idea how companies use or share their data. After all, 30 % fear that their personal information will be stolen.

 

“In light of recent events and changes in the law, consumers need much more reassurance when it comes to what personal data companies hold on them, and how it is shared and used,” said Tamzin Evershed, Senior Director and Global Data Protection Officer at Veritas.

 

“This could have significant implications for businesses that rely on collecting consumer data to provide intelligent and targeted services, such as location-based apps. The most successful companies will be those that are able to demonstrate that they are managing and protecting personal data in a compliant way across the board.”

 

GDPR – What impact will the new #DataRegulation have on the Hotel Industry?

DATASECURITY

Indispensable for reservations and booking, hotels handle large amounts of personal data that need special protection. The hotel must ensure customers are aware of the particular uses of their data. GDPR legislation brings in a large number of transformations. Here below is a brief overview of the challenges that will have to be faced by the various players in the sector.

 

In 2014, the computer security company Kaspersky revealed to the general public the hacking campaign “Dark-hotel” developed in luxury hotels. By penetrating Wi-Fi networks, sensitive data has been robbed via devices of senior executives while they were on a business trip. More recently, in January 2017, an Australian hotel was hit by ransomware. With the possession of the electronic key system, the hackers had locked hotel’s customers in their rooms, forced to pay $ 1,500 in bitcoins on the Dark-web, a price for opening the room’s door.

 

In addition to all other industries, the hotel industry is exposed, as well, to a major challenge: ensuring the security of personal data while dealing with cybercrime. In this perspective, the European Union has adopted the General Regulation on the Protection of Personal Data (RGPD) which is mandatory form from May 25, 2018.

* GDPR is a regulation to strengthen and unify data protection for individuals within the European Union.

 

It redefines the protection of individuals by protecting their personal data with a number of major provisions. Fully concerned, the hotel industry has only two months to anticipate these new obligations in order to strengthen their data protection system.

 

Hoteliers must take responsibility

 

Today, the concerned actors are not aware of the risks essential to personal data and the strict responsibilities upon them. Indeed, the hoteliers have in their hands a colossal amount of personal data that customers entrust fairly easily to the detour of a few clicks.

Customers are invited to book by sharing several private data (full name, postal address, email, credit card information, date of birth). Once the reservation is made, a contract of trust is established between the customer who shared his personal data and the hotel which has the heavy responsibility to protect them.

 

In this logic of responsibility, this need for data protection and integrity naturally extends to service providers, partners and subcontractors (Booking Center, Concierge Services, etc.) to whom the obligations regarding security and confidentiality will have to be met, to be strengthened and clarified. It is easy to understand the impact that any flaw in the concierge service would generate by disclosing the habits and sensitive data of its customers and distinguished guests.

 

According to travel statistics, 93% of customers goes online to find and book a hotel. Taking the example of the Booking.com platform, the industry leader, the client communicates all its personal information which will then be transmitted directly to the hotel. In 13% of cases, this data will be sent by fax which, poorly preserved, can generate a risk for the individual in case of fraudulent use.

 

The penalties for not complying with GDPR are large, at a financial cost of up to €20 million or 4% of worldwide annual turnover (whichever is greater), not to mention the potential reputational cost to a business in the hospitality industry. Even more prejudicial, the contract of trust with customers would be particularly weakened with a reputational risk with serious consequences for the hotel.

 
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Six urgent measures to take

 

It is security that must adapt to the customers and not the other way around. Securing data is a major issue that hotels must prepare to ensure a level of security adapted to maintain and strengthen this relationship of trust between customers and hoteliers.

For that, several challenges will have to be raised by the various actors of the sector:

 

Data mapping: Hotels need to complete a data mapping process to become aware of what data is captured, where its stored, and how it is used before it can begin the process of how to protect and monitor it moving forward. A data mapping process helps to react effectively in case of violation.

 

IT and Security assessment: After data mapping process, the hotel’s hardware and software applications should be reviewed along with hard copy files. A series of encryption codes, pseudonymization techniques, passwords or limitations on access may need to be implemented to protect access and the integrity of the data.

 

Data protection officer: Designate the data protection officer, guarantor of the data protection structure with the responsibility to review the access, archiving, transfer and data protection processes. Data protection officers are responsible for overseeing data protection strategy and implementation to ensure compliance with GDPR requirements.

 

Cleaning up data records: Deleting isn’t required but validating the data that is a must. In this process, a hotelier must reach out to customers to inform them of the new policies and to verify their data and its uses. Document all standard operating procedures and invest in training of all relevant staff members to ensure they have a thorough understanding of the new procedures and the implications of the regulation. Analyze the risks of impacts by assessing the risk of disclosure of personal data by system.

 

Raise awareness and train internal staff: Maintaining GDPR awareness with staff is an ongoing process. Management should provide regular refresher training for all staff to ensure an awareness culture exists to protect against possible breaches.

 

Third party partners: Review contracts with existing partners, contractors and subcontractors to ensure integrity throughout the data cycle. A major change due to GDPR is that data processors are captured by the regulations as well as data controllers.

 

Taking the example of the “ransomware” of the Austrian hotel, It is a call for accountability and awareness for the hospitality industry that requires concrete actions to meet the challenges. This will fully fulfill the contract of trust to the customer by ensuring protection of their data.

#SaaS and European Legislation on #DataProtection

This article presents a summary of the legislative and regulatory aspects that European companies must take into account when choosing a SaaS provider. Particularly in terms of #DataProtection. When choosing a SaaS provider, companies must implement a checklist with controls and negotiations that they would apply if they work with a relocated service provider for their IT operations.

EU-Data-Protection-Regulation

The main features of Software as a Service are as follows:

 

– The user accesses the application via the Internet.

– The cost depends on the actual consumption of the service (software).

– The supplier of the application (software) is responsible for its maintenance and availability.

 

Typically, when a European company adopts a cloud service, it’s responsible for how the SaaS provider processes its data, not the other way around. Due to some uncertainty, as to how and where the SaaS provider will store the data, there is a risk that it may overstep on its customers national or European regulations, which impose strict controls on the processing data of outside the European Union.

 

In SaaS solutions, the client company data is stored on the servers of the provider. This may include personal data or sensitive data such as health data. This relocation of the data implies respecting their confidentiality and ensuring their safety. The contract must frame the risks and remind everyone of their obligations.

 

In accordance with the 1995 European Data Protection Directive, which was transposed into the national law of 27 EU Member States, the transfer of personal data outside the European Economic Area (EEA), including the countries of the European Union (plus Iceland, Liechtenstein and Norway) is prohibited unless certain conditions are met. By transfer, the Directive implies that the data will be processed in one way or another in a non-EEA country; On the other hand, the transit of data via these countries is authorized.

 

For Directive, personal data is equal to any information concerning an identified or identifiable natural person. This broad definition may include various information about a person, such as name, address, IP address, or credit card information.

 

Cloud Computing = Outsourcing?

 

Outsourcing is the well-known method whereby a third party supports one or more company functions, which often lack resources (time, expertise or both). It is common, for example, to outsource a project that requires an increase in resources or a function that will no longer be useful once the project is completed (one-time need for development, software integration, etc.).

 

With cloud computing, companies do not realize that they need to take the same precautions as outsourcing. Personal data may be transferred outside the EEA if they are processed in a country on the European Commission’s list of countries or territories which provide adequate protection for personal data. (Visit the European Commission website to check countries list ).

 

The United States is not on the list of countries approved by the Commission, but data can be transferred to US companies that have signed the Safe Harbor agreement requiring them to apply seven principles for the processing of information under the supervision of the Federal Trade Commission.

 

If a country is not on the European Commission’s list of approved non-EEA countries, companies or service providers may take other measures to provide suitable protective policies for personal data and enable their transfer.

 

The security of the SaaS provider must be evaluated by the companies

 

In addition to these measures, companies considering SaaS and wanting to avoid the failure to comply with #DataProtection laws generally have to prove that they have evaluated the safety of the supplier and specified measures to protect personal or other sensitive data processed by the supplier.

 

These measures may include asking the supplier a security evaluation from a third party, requesting that the data must be encrypted during transit, checking the provider’s data retention and destruction policies, setting up audit trails or the data and obtain information about any third-party company with which the supplier could share data.

 

With that being said, companies should not just look at data protection legislation when they want to adopt SaaS. Thus, national laws on financial legislation in EU countries limit the places where companies can store financial information. For example, European companies must keep electronic invoices for five to ten years. In addition, amendments to the European Council Directive 2010/45 / EU stipulate that this information must be stored on servers located either in the country of establishment of the undertaking or in a neighboring country providing access to the relevant tax authorities.

 

Confidentiality of Data

 

The confidentiality of data hosted in Cloud is today the most important of the brakes for the companies wanting to use this service. The standard of confidentiality becomes very important when the hosted data presents a strategic content for the company or when it can be considered as personal data.

 

The confidentiality of the data may be called into question by members of the service provider or the client company, as well as by a person totally outside these services. It is therefore necessary to put in place, a high level of security, for access to these data, especially if they are accessible via the Internet. The confidentiality of data can also be undermined by regulations applicable to the claimant, especially if the applicant is domiciled in the United States.

 

As the SaaS market matures, it is becoming increasingly simple to use these services without fear of breaking the law. Over the years, we have seen the evolution, the contracts have grown and different models have been set up on both the customer and the service provider’s side.

 

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