In our increasingly digitalized world, companies are faced with a daunting challenge: They are required to protect the privacy of their customers while implementing effective identity verification methods at the same time. With technology constantly advancing and a growing demand for online services, companies are required to take into account applicable data protection laws and implement appropriate measures for identity verification.
Protecting personal data has become extremely important in recent years. Increasing data protection requirements and consumer sensitivity make it inevitable for companies to consider data protection an integral part of their business model. In order to better protect personal data, there are laws and regulations both on national and European levels.
Data security is a huge factor in identity verification. Quite a bit of confidential information is required for the process:
Protecting personal data is a big part of all data security regulations.
In the European Union (EU), for example, the handling of personal data is regulated by the General Data Protection Regulation (GDPR) to protect the privacy of all citizens. It outlines some basic principles companies must adhere to when handling customers’ personal information. It also defines the rights of affected persons, obligations of responsible entities and measures to ensure an adequate level of data protection. The GDPR allows for severe fines for violations to ensure that companies take the necessary precautions to ensure confidentiality when processing their customers’ data.
Additional laws or similar stipulations are in place for individual countries and different regions around the world. These are often rather strict, involve severe fines, and should be considered carefully when implementing identity verification or other services that involve customer data.
Companies have to act responsibly to ensure privacy protection while guaranteeing the security and reliability of their services. Here are 9 tips on how to do this successfully:
Users must be fully informed about different types and uses of data collected, as well as about data processing. Authorization from users is required before personal data is processed - especially in case of sensitive information.
2. User rights
Users' rights regarding their personal data must be respected. Users should be able to access their data, correct inaccurate information, and request the deletion or restriction of processing.
3. Data collection: data minimization and data economy
Data collection is primarily about storing as little data as possible. Data minimization and data economy should be the key criteria here. Collect only data that is absolutely necessary for identity verification, no superfluous or sensitive information.
4. Data storage and security
Make sure that the personal data is stored safely and securely. To this end, implement appropriate technical measures to prevent the loss or misuse of the data.
5. Data access and control
Restrict access to personal data and grant it only to authorized persons. To this end, implement appropriate access controls and monitoring mechanisms to prevent unauthorized access.
6. Storage regulations
Retention periods must be observed. Don't store data longer than necessary, and delete it as per legal requirements.
7. Privacy by design
It is best to implement technology and measures for data protection in business processes and systems from the outset.
8. Verification of data deletion
When data is deleted, it must be removed from all systems and backups. Verify the functionality of data deletion on a regular basis.
9. Compliance with data protection laws
It is important to comply with all applicable data protection laws.
You can’t separate data protection and identity verification. Businesses need to ensure that their customers are accurately verified and that their data is protected. At a time when breaches of data security and identity theft are increasingly common, businesses must take the necessary steps to protect the privacy of their customers. Familiarize yourself with respective laws and regulations, and make sure that you meet all requirements.
It is the company’s responsibility to protect their customers’ data and privacy. By implementing appropriate measures to protect data and complying with applicable laws, companies can make a positive contribution to privacy protection.
Please visit our Trust Center to learn more about how we at PXL Vision manage data privacy within our identity verification solutions. You may also contact us directly with any questions.