Resource: Articles

Why data security is even more important than you think

Data security services are not just about ensuring information you have on your files is kept safe; they can also help protect your organization’s reputation.


Why data security is even more important than you think

If you are planning to digitize large volumes of data held in non-electronic form, from tapes to microfiches to paper documents, the benefits may seem obvious. Storage space will be cut down, access will be easier and, in the process, you may discover more clearly where your records are complete and up-to-date and where there is some information missing.

All these things make digitization a smart and worthwhile move, but like any form of digital data storage, there is a risk from those who would want to steal data for their own financial gain, either directly or by ransom, or simply out of malevolence.

While data security once meant locked doors and fireproof document boxes, it now means firewalls, keywords and anti-viral software. Data security services are essential for any organization wanting to make a success of digitization.

Indeed, it is not always appreciated just how important this is. Often, the foremost thought is given to the most obvious risks of data being compromised, either due to it being irrecoverably lost or the theft of it causing a financial loss. But there is also the matter of reputation to think of.

A contemporary example of how a failure of data security could be damaging to a firm is the revelation by Japanese tech firm Fujitsu, which has acknowledged a major cyber attack that has seen data stolen and could compromise the security of many of its customers.

The English translation of the statement, originally produced in Japanese, confirmed that “it was found that it was possible to illegally exfiltrate files containing personal information and customer information”.

Any failure of this kind could be hugely damaging for a firm. If a tech company itself is not able to deal with all malware deployed against it, its reputation will surely suffer.

This could hardly have come at a worse time for Fujitsu, whose reputation has already taken a big hit from revelations in the UK about its Horizon accounting software system, introduced by the Royal Mail 25 years ago.

Flaws in the Horizon system led to inaccurate financial data being produced, with shortfalls in accounts leading to hundreds of innocent postmasters being charged and convicted of theft.

The scandal has worsened amid revelations that both Fujitsu and The Post Office knew about the problems in the system, not least that it could be hacked, despite this being publicly denied, even in court.

Quite apart from the fact that both organizations face having to pay large sums of money towards a wider compensation scheme for those convicted, each body has suffered a reputational blow.

However, it may be hard to feel sympathy for a company like Fujitsu. In the latest case, nobody may end up with a wrongful jail sentence, but they could certainly lose money through identity theft or be heavily targeted by fraudsters.

This goes to show that if your organization needs data security, a reliable provider is essential to ensure you are safe. This is not just to prevent the loss of data or money, but to protect your reputation as a reliable body that only selects the best security providers.

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