Friday, January 6, 2017

Customer Data Is a Liability | American Banker

This is a must read for all businesses keeping databases of their clients, credit cards, and private data. Many marketers are still pushing the idea of we want to know all we can about our customers so we can serve them better, and perhaps make so money out of selling or renting information about them to other businesses. Here is the crunch, every time a business does this, their database becomes a target for hackers, that want to use the same data for nefarious reasons. By the way some gray hackers are pushing to make it into the business world offering to sell data to marketers of mainstream businesses. Now this gray area can be very profitable to both sides, since it often is marketed by the original businesses that collected it, this hacked material is already out there in the market place, but the gray hackers can offer it at a much lower cost. So here is the problem is collecting this data on customers worth the risk of a hacker getting the data, and your firm has to pay damages as well as suffer the possible loss of clients. I think 2017 will find a lot of firms thinking about this part of their business plan, and not collecting as much or any data as before.
from CTI Consulting

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