By Harsha Solanki, VP GM Asia, Infobip
Cyber threats in India reached a new level in 2024, fuelled by rapid technological advancements and the growing dependence on digital systems. Over 500 million cyberattacks were reported in the first quarter alone, with a staggering 46% increase during the second quarter compared to the same period in 2023. While the rise of AI, Generative AI, and machine learning has empowered businesses, these technologies have also enabled attackers to automate and enhance their methods, making cyberattacks more sophisticated and harder to detect. Ransomware attacks have surged globally, with criminals extorting organisations by threatening to leak sensitive data. Data breaches have become a frequent vulnerability, while phishing attacks exploit human behaviour to infiltrate systems. India, as one of the fastest-growing digital economies, is particularly susceptible. The breach at WazirX, a cryptocurrency trading app in India, which exposed millions of sensitive financial data, showcases how businesses with insufficient safeguards can fall prey to malicious actors.
In this challenging environment, protecting data isn’t just a compliance exercise; it’s a cornerstone of business resilience and customer trust. The global average cost of a data breach is $4.45 million. Today, consumers demand more transparency and accountability from brands about handling their data. A single misstep can lead to reputational damage, loss of customer loyalty, and significant financial penalties.
Importance of protecting customer data
In today’s data-driven economy, customers are more willing to share their data with businesses when they trust that it will be handled responsibly and stored securely. A company’s reputation also plays a vital role — data breaches can damage brand credibility, deter potential investors, and hinder fundraising efforts. Conversely, strong data security measures enhance trust, reduce customer churn, and drive positive recommendations while ensuring compliance with data protection laws. Demonstrating adherence to these regulations reassures clients and partners, fostering long-term confidence and loyalty. By protecting customer data, businesses can reduce churn, increase positive recommendations, and avoid costly regulatory fines associated with data misuse. In the long run, the benefits of an effective data security strategy far outweigh the short-term costs, making it a crucial investment for sustained growth and success.
Measures to safeguard data
To help businesses navigate this complex landscape, there are data protection practices that every organisation must adopt to safeguard their operations and build customer confidence. Hosting servers in purpose-built data centres equipped with advanced physical access controls and on-site security ensures critical hardware remains secure, significantly reducing the risk of physical breaches. For external sabotage, such as power line cuts or cooling system failures, cloud providers collaborate with local law enforcement and security contractors while implementing contingency plans to minimise downtime and maintain operations.
To safeguard data in transit, strict access controls, multi-factor authentication, and data encryption prevent unauthorised interception across internal networks, the Internet, or third-party integrations. Robust antivirus protection, paired with employee education to identify potential threats, helps prevent malware from infiltrating systems and spreading through networks. Adopting cloud storage eliminates the risk of data loss from stolen or misplaced devices by ensuring no data is physically stored on hardware, with stringent access controls adding an extra layer of security.
Deploying sophisticated monitoring systems detect and neutralise excessive traffic from botnets, thwarting denial-of-service (DoS) attacks before they disrupt servers or services. Businesses can partner with cloud service providers to host customer data, gaining the advantages of centralised data security, seamless accessibility from any device or location, and reduced costs associated with hardware and maintenance. Trusted cloud providers also implement robust data security measures, ensuring customer data remains protected at every stage of its lifecycle.
Employees are essential in upholding data security and privacy. Regular training on best practices and adherence to company policies help minimise the risk of unintentional data breaches and insider threats.
Conclusion
In India, the Digital Personal Data Protection Act highlights the escalating significance of data privacy and cybersecurity. Businesses must proactively navigate complex regulatory landscapes by identifying applicable data protection regulations, appointing a Data Protection Officer, and collaborating with tech and legal teams to develop adaptive security strategies. Creating and implementing robust data protection policies is essential for ensuring compliance. These policies should define protocols for data handling, storage, and disposal, along with guidelines for access control, incident response, and employee training. As cyber threats continue to evolve, organisations must remain vigilant, continuously reviewing and updating their data protection protocols to safeguard Personally Identifiable Information (PII) including sensitive information effectively.