12 Dec Fraud Prevention & Consumer Data Privacy – Have you been sitting on the fence?
By Holly Paulus
We are now in an era where consumer awareness about the use and misuse of their personal data has become commonplace. This has largely been facilitated by the regular occurrence of data breaches exposing hundreds of millions of consumers’ personal information. These data breaches have driven the recent data privacy regulations such as the GDPR and the newest California Consumer Privacy Act (CCPA). Consumers are demanding their personal information be protected, have the right to control their data, have a say in who has access to their data and what data is accessible to them, and have a choice in how or if, their information can be used.
Businesses should prepare to protect consumer information while also protecting their business interests
There is increasing complexity for businesses in the modern digital world due to a vast increase in the amount of consumer data being collected. Global and US domestic privacy regulations have also increased the need for organizations to implement solutions that demonstrate compliance, transparency to the consumer, provide a system record of “proof” and most importantly, that these solutions be scalable.
There are some key items to consider when tackling scalable solutions for data privacy.
Consumer Identity within your Enterprise
- Identify Consumers across offline and digital touchpoints through a centralized solution
- Categorize data
- Develop tracking and categorization of output
- Establish Consumer Preference capabilities: Opt-out and deletion rights
- Prepare Consumer-specific data (1st party and 3rd party) for consumer request access
Consumer Verification & Authentication: for access to a consumer’s specific information on request
- Verify and Authenticate the consumer identity for consumer access requests
- Provide traceability that is required for compliance & audit requirements
- Record and Track – Proof of Compliance
What is next? CCPA (California Consumer Privacy Act
The CCPA (California Consumer Privacy Act) is the first of the most expansive laws passed where businesses must ensure that they are complying or the fines could be devastating. There are several other states that have recently passed or are working passing their own version of consumer data privacy laws.
The California Consumer Privacy Act was passed in June 2018 and goes into effect on January 1, 2020. The key is that it includes the prior twelve months of collected, sold or disclosed data. The purpose of the CCPA is to protect private information in the possession of businesses. There are also multiple layers which continue to change like a moving target. You must be ready!
Energy Marketers on CCPA Compliance and California Residents – The “Consumers Right to Know” basics you need to understand
Consumers Right to Know
There are numerous resources for preparing your business for the CCPA and new upcoming data privacy law requirements. Don’t wait. Be proactive and prepare your business for consumer data privacy and demonstrate to your customers and consumers that your brand honors consumer choice. Please note: This content is not legal advice, you should always seek the advice of your legal counsel.
Holly Paulus is CEO of Nexxa