Private Data Breaches Lead to Big Losses for Fortune 500 Companies
Companies and consumers lose out big from data breaches. For example, a 2011 data breach involving Citigroup’s customer records resulted in a $1.3 billion stock value loss. If Citigroup would have had a more transparent and complete privacy policy in place, the economic losses could have been minimized.
An effective privacy policy is transparent and gives consumers the ability to control which of their data is stored, and how it is stored. Companies need to be clear about which information is collected and what methods they use to do so. Beyond that, they should let their customers know how they store the information and for how long.
Giving consumers control helps minimize risk for the company. Also, according to studies by Harvard Business Review, customers of firms with high transparency and control are more forgiving in the event of a breach. These customers also reported feeling less violated from big data practices and were more likely to generate positive word of mouth.
Fortune 500 Companies at Risk Due To Poor Privacy Practices
Breaches lead to economic losses, both for the effected firm and for others in the industry. Companies can minimize these effects by being transparent, and giving control to their consumers. Unfortunately, only 10% of Fortune 500 companies fall into this category. Consumers demanding more control over their data begs the question: What data do companies really need, and is it necessary to give up privacy for more utility?
International Association of Privacy Professionals (IAPP) said the privacy tech industry is “like the security technology industry just 15 years ago, the privacy technology industry is in flux and is changing every day. Investment in this technology is growing.”
The growth in awareness of privacy concerns has lead to larger budgets and even the creation of new positions like Chief Privacy Officers (CPO).
We’ve seen a data gold rush of sorts over the past decade, and now companies are trying to figure out how to keep it safe and ultimately how to protect users. Many privacy tech startups are seeing influxes of funding from various venture capital groups, including investors from Facebook, LinkedIn, and Twitter.
The Companies Offering Privacy Solutions
Here are a few of the Privacy Tech Vendors listed by IAPP.
Aircloak — Share Insights, not Data
Alation, Inc. — The world’s first collaborative data catalog.
AvePoint — AvePoint is the Microsoft Cloud Expert
BigID — BigID is an Israeli-US security software company aiming to redefine how enterprises protect and manage the privacy of their customer and employee data.
Clearswift — Enabling secure collaboration and compliance by delivering the world’s first Adaptive DLP. Email Security. Endpoint Security. Web and Cloud Security.
Cryptzone — A Global Provider of Dynamic, Context Aware Network, Application and Content Security Solutions. Follow Us Here To Stay Up To Date With Industry & Company News.
EuroComply (Emerald de Leeuw) —Data Protection Technology
The Exonar team — More productive, insightful, secure data turned into business action
@PlanetVerify — Simplifies & secures documents gathering process.
Sytorus — Data Protection, Data Retention, Data Destruction, Third Party Security, General Data Protection Regulation
Varonis — Varonis is a leading provider of software solutions that protect data from insider threats and cyberattacks.
Wickr — Secure Ephemeral Communications. Built for the enterprise. End-to-end encrypted messaging. Secure rooms. Peer-to-peer encrypted file sharing. Multi-platform.
These companies are likely to see growth in the coming years. For every privacy breach, there is a scramble by the affected company and its competitors to protect themselves from future leaks or hacks.
