May 26, 2023
6 min read

5 Ways Securing Customer Data Impacts Your Bottom Line

John Hetherton

Head of Compliance

1. Protecting Your Company's Assets

Data is an essential asset for any business, and its protection should be a top priority. Data breaches can lead to financial losses, operational disruptions, and severe reputational damage.

According to a study by IBM, the global average cost of a data breach in 2021 was $4.24 million, the highest in the 17-year history of the report [1].

By encrypting your data at the field level, using a well-understood methodology to separate decryption keys from encrypted data, you add a critical layer of security that makes it difficult for cybercriminals to access, read, tamper, or use stolen sensitive information in a meaningful way. This increased level of protection helps your company minimize the risk of data breaches, ensuring business continuity and preserving customer trust.

Field level encryption will transform human-readable plaintext on the client side into ciphertext through a cryptographic process using keys that are kept separate from the data.

To put this in perspective, preventing a breach by using Evervault encryption would cost your business less than 0.5% of the cost you could incur in data breach damages. The following table demonstrates some publicly disclosed outcomes arising from data breaches at companies you likely recognize:

2. Meeting Global Privacy Regulations

As data protection becomes a global concern and governments begin to intervene to protect their citizens, the landscape of privacy regulations is becoming increasingly challenging to navigate. The European Union's General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA) are just two examples of regulatory frameworks that mandate strong data protection measures. Non-compliance with these regulations can result in significant penalties.

GDPR fines can reach up to 4% of a company's annual global turnover or €20 million, whichever is higher [2].

By using comprehensive encryption, your company can demonstrate compliance with these regulations and avoid potential fines, legal action, and reputational damage. This proactive approach to data security not only benefits your bottom line but also enhances your credibility in the eyes of customers and partners.

3. Building Customer Trust and Loyalty

In the age of high-profile data breaches, customers are more concerned than ever about the security of their personal information.

A PwC survey found that 85% of consumers would not do business with a company if they had concerns about its security practices [3].

This trend is becoming increasingly pronounced as supply chain attacks become mainstream attack vectors. The response to this is what industry experts call “Clean Infrastructure,” maintaining a well-organized, efficient, and optimized infrastructure for software applications or systems, which includes clearly defined security and compliance practices. Encryption at the field level is a visible demonstration of your company's commitment to data privacy and security built into your infrastructure. When customers know that their data is protected by strong encryption, they are more likely to trust your business and remain loyal. This loyalty can remove barriers to winning business and increase customer retention with long-term revenue growth.

4. Being Seen as an Industry Leader

If your core product handles sensitive data, using encryption can position you as a leader in your industry.

The 2021 Verizon Data Breach Investigations Report revealed that the most affected industries were finance, insurance, healthcare, and retail, accounting for 67% of all breaches [4].

By staying ahead of the data security and regulatory compliance curve, your business can gain a competitive advantage and enhance its reputation. This can also lead to long-term benefits across the industry, encouraging more and more companies to take security seriously, possibly one day ending data breaches for good.

5. Future-Proofing Your Business

As technology continues to evolve, so too do the threats posed by cybercriminals. Implementing an encryption solution that applies encryption at the field level future-proofs your business against emerging cyber risks. By adopting a proactive approach to data security, you can ensure that your company remains agile and resilient in the face of new challenges, maintaining your competitive edge in the long term.

Conclusion

Looking back at the numbers:

The global average cost of a data breach is $4.24 million
GDPR fines can reach up to 4% of a company's annual global turnover or €20 million
85% of consumers won’t do business with a company if they have concerns about its security practices
Using Evervault encryption would cost your business less than 0.5% of the cost you might incur in data breach damages. The benefits of using encryption to secure your company's data are clear. From protecting your valuable assets and meeting global privacy regulations to building customer trust and staying ahead of the competition, encryption is a vital component of a comprehensive cybersecurity strategy. Don't wait for a data breach to happen – take action now and unlock the full potential of encryption for your business.

The Evervault encryption platform allows organizations to leverage encryption with minimal disruption to current systems and processes. Sign up for a free account here to see how it works, and contact us to talk through how encryption fits into your wider security strategy.