Data breaches are all over the news lately, but data analytics may be the key to tighter security — and better customer service.
A growing number of high-profile organizations have been in the news recently for data breaches that put customers at risk, and the trend shows no signs of stopping. Collecting data about customers allows organizations the advantage of personalizing their services, but safeguarding that data comes with major security concerns.
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Data analytics, or the way organizations process the information they collect to learn about their customers, is becoming increasingly effective at de-anonymizing large amounts of data and tying it back to specific individuals. While personalized data is a goldmine in terms of marketing and services, it’s also exactly what cyber-criminals target.
But information expert Sam Ransbotham, in the MIT Sloan Management Review, says that de-anonymizing people through data analytics coud be a powerful security tool itself, and can even improve customer service along with way.
How data analytics plays into security
Ransbotham points out that authenticating identity is one of the most important parts of keeping data secure. Whether online or over the telephone, authenticating your identity usually means answering a string of questions first to identify your account and then to affirm that you are who you say you are.
Data analytics, however, offer a better way of authenticating identity. A number of companies in the banking sector have already begun to use speech processing to identify a caller’s voice based on recordings of previous telephone calls. These “voiceprints” can confirm identity almost instantly and reduce the chance of someone stealing a personal identification number (PIN).
Using an automated system of voice-data analysis gives banks the added benefit of being able to adjust their security protocols for all customer service interactions at once. This allows for faster responses to updated assessments of security threats, rather than having to re-train customer service representatives.
Customer service advantages
Instead of making callers identify themselves by answering “security challenge questions,” data analytics allows the security process to take place behind the scenes. Customers experience a more streamlined calling experience that immediately addresses their needs. They save time and are spared the hassle of answering questions to identify themselves.
Security challenge questions are, Ransbotham says, “adversarial by design. … This authentication process must begin with the assumption that the caller is a malefactor impersonating the real customer.” By performing the authentication process behind the scenes, voiceprints help re-define the customer service experience as helpful instead of combative.
Organizations, in turn, can save time on employee training. They can focus on training employees for service rather than security.
Data analytics does not have to involve a trade-off between security and service. Techniques like collecting and analyzing voice data can actually start providing solutions to some of the security concerns that data collection raised in the first place.
As Ransbotham suggests, data analytics has the potential for further applications. Voice analysis can detect speech patterns that indicate if someone is being coerced or suffering from impairment, which could be adapted for security and service purposes, too.
With Facebook’s latest Cambridge Analytica scandal, you may be reevaluating if it makes sense to dedicate time and resources to your company’s Page. Can users trust Facebook?
Facebook has been in the spotlight quite a bit lately. And we’re not sure the saying “all publicity is good publicity” is holding true for the ‘Book.
From a user perspective, Facebook has faced widespread criticism in recent months for its role in spreading sensationalist, often inaccurate news stories. And from a corporate standpoint, a number of changes to News Feed deprioritize content from business Pages, making organic reach less attainable.
Next, a scandal.
Then the Cambridge Analytica scandal broke. The New York Times reported that UK-based data firm Cambridge Analytica had obtained personal information without user’s knowledge, or more importantly, their consent. Since the report was published, Zuckerberg has profusely apologized for Facebook’s involvement in the data breach scandal, even placing a full-page apology ad in three American newspapers.
The fallout.
More and more big-name companies are removing their Facebook Pages — including Sonos, SpaceX and Tesla — as a result of the data breach. The hashtag #deletefacebook has been trending as more and more users remove their personal Facebook pages.
And then there’s Facebook’s stock. It fell more than 13 percent in the five days of trading following the initial reports. And at the end of March, the stock fell more than 20% off its 52-week high.
What does this mean for your business?
Kettie Laky, director of social media at Fronetics, has been closely following all the latest developments, as well as monitoring our clients’ Facebook analytics data. In this video, she’ll let you know whether you can trust Facebook and what you need to do next.
We know that with the increasing growth of cyber-hacking and data breaches, investing in IT asset disposition (ITAD) is a growing necessity for companies. It is critical to ensure the safety of a company’s confidential live and stored data on all of its assets, ranging from computers, phones, servers, and hard drives. If breached, a company’s reputation, consumer base, finances and future viability are all at risk. What happens to data and technological gear after it is retired can be equally as critical as the current live data and in-service equipment. Proper disposal is not only important to the integrity and success of the company, its partners, and clients, but it may also protect the environment. While some sectors have strict regulations and requirements regarding ITAD, others do not, but whatever the case, the ethical obligation is huge.
The Cost of Hacking and Breaches
Akamai Technologies’ State of the Internet report showed that “hacker attacks on websites went up 75% in the final quarter of 2013, with hackers in China responsible for 43% of all attacks.” More recently, in 2014 the Cost of Cyber Crime Study was conducted by Ponemon and sponsored by HP. It found that crimes are more expensive, happen more frequently, and require more time to resolve than ever. It also found that crimes happened across various sectors (see below).
The average annualized cost of cyber crime was $12.7 million, with a range of $1.6 million to $61 million; an increase of 9 percent or $1.1 million over the average cost reported in 2013.
There are an average of 138 successful attacks per week, compared to 50 attacks per week when the study was initially conducted in 2010.
The average time to detect a malicious or criminal attack by a global study sample of organizations was 170 days. The longest average time segmented by type of attack was 259 days, and involved incidents concerning malicious insiders. The average time to resolve a cyber attack once detected was 45 days, while the average cost incurred during this period was $1,593,627 – representing a 33-percent increase over last year’s estimated average cost of $1,035,769 for a 32-day period.
ITAD: A Growing Business
According to TMR as reported in IT: Connect and Expand, the ITAD market will expand to $41 billion by 2019 on 141 million tons of used equipment. With the heavy responsibility that goes with ITAD in terms of proper wiping, disposal, reusing and recycling, more companies are working with 3rd-party service providers who specialize in ITAD. According to Business Wire 65 percent of companies larger than 10,000 workers, and up to one third of all businesses, are turning to 3rd-party service providers to manage end-of-life assets.
What if something goes wrong?
It makes sense with the increase of cyber crime that there would be cyber insurance. This may be one solution to protect yourself, however, according to observations made on the site Dark Reading, “cookie-cutter” cyber insurance might not be everything you need.
The perception of the reverse logistics industry has shifted over the last several years. Reverse logistics has gone from being viewed as an afterthought to a necessary evil to being recognized as a wealth of opportunity. This shift has occurred as a result of several factors including: shortened product lifecycles, increased regulations and standards, consumer demand for corporate responsibility, and an increase in razor-thin margins. Equally important in the industry’s makeover – companies have come to understand and to realize the benefits of reverse logistics such as a reduction in costs, a revenue stream, and as a way to enhance customer loyalty.
Unfortunately when choosing a solutions provider, many companies fall prey to the assumption that a certain level of compliance and data security are givens. More often than not; however, the reality is that the service provider does not offer the level of compliance or data security assumed by the customer – and more often than not, the level that is offered by the service provider is inadequate. When due diligence is left to assumptions companies pay dearly.
Specifically, faulty assumptions regarding certain levels of compliance and data security provided via a service provider leave the customer open to lawsuits and fines as a result of non-compliance and leave the door open for data leakage and theft. The financial costs associated can be astronomical. Moreover, the company and the brand can take a significant hit resulting in a decline or even loss of customers and customer loyalty. In short, choosing a reverse logistics service provider that does not offer the compliance and data security necessary for your company can negate any gains realized as a result of your company’s reverse logistics strategy.
When selecting a reverse logistics service provider don’t make assumptions; don’t take the route of complacency. Instead, ask questions, conduct due diligence, and make sure that the level of service provided goes beyond meeting your needs – the service provider should be able to exceed your company’s needs.
When selecting a reverse logistics service provider, look for a provider who has network and standards in place which ensure global success. What does this look like? Arrow Value Recovery is the gold standard. Arrow provides uniform standards and quality controls. Unlike some service providers who default to the lowest common denominator, Arrow providers customers with consistent levels of service –globally. Moreover, Arrow ensures that every step of the recovery, data sanitization, and reuse and recycling process is not only transparent but is also 100 percent auditable.
Taking the time to thoroughly vet a reverse logistics service provider is essential. Don’t make assumptions and don’t default to complacency. Did you know that an estimated 70 percent of data breaches come from computers that are offline – typically computers that have been disposed of by the equipment owner? Don’t assume that your reverse logistics provider is offering your company the level of compliance and data security necessary – verify the facts.
