Data breaches are some of the most dangerous and damaging catastrophes facing modern businesses, and they are only becoming more common. According to IBM’s annual Cost of a Data Breach Report, the average total cost of a data breach for a business has risen 10% in the last year, and found that the global average cost of a single data breach was $4.24 million. The numbers make it very clear: data security options is more important than ever for the millions of businesses that rely on digital assets to operate.
One of the most worrying aspects of data security notes is the increasingly digitized management of expenses. Your financial data is one of the most valuable assets to your business and must be well-protected. So whether you’re a Fortune 500 company or a small business, it’s time to take a look at your expense management systems and ensure that you’re protecting yourself from hacks and other dangerous data leaks.
- Why Your Expense Management System Needs Data Security
- How to Increase Data Security: Features Your Expense Software Should Include
- Good Data Security is the Key to Customer Trust
Why Your Expense Management System Needs Data Security
Expense management has transitioned from paper ledger books to digital management systems with tons of helpful features. However, this means that both your company and your customer’s financial information is vulnerable to data breaches. Consequences of a data breach can include:
- Financial losses
The most obvious consequence of someone getting access to your expense accounts is theft. If hackers can access your expense management software, they may be able to gain access to your cash accounts, credit cards, and other financial accounts and use this access to steal assets.
- Loss of client trust
Data breaches can leave your client’s information as exposed as your own and having to admit to clients that their personal information has been compromised due to a failure in your data security systems can cause irreparable damage to client trust.
- Operation disruptions
Data breaches must be dealt with immediately, and in some cases, the hackers disrupt the systems you need to access in order to deal with the problem. This can shut down entire companies for hours, days, or even weeks (depending on the severity of the breach).
- Poor company reputation
No one wants to do business with a company that doesn’t know the answer to the question of how to improve information security, so a data breach can easily put your company on a public “do not trust” list.
We have seen these consequences time and time again when big companies like Target, Twitch, and Equifax suffer massive data breaches that leak valuable customer data. Losses for these companies have reached millions of dollars as they attempt to fix the breaches and win back customers.
How to Increase Data Security: Features Your Expense Software Should Include
So how to improve information security? We’ve covered the dangers of leaving your expense data at risk of a data breach. Now, what are some steps you can take to ensure that your data stays secure? Here are some security features that you should ensure are included in any expense management software you use for your business.
#1: End-to-End Encryption
If your expense management software has nothing else, it should at least have end-to-end data encryption. Encryption ensures that if someone intercepts your data, they will not have access to the actual contents of the information. It acts as a secret code that only the people who are granted authorized access can break.
#2: Secure Access Controls
Many hackers don’t have to use complicated backdoor tactics to gain access to your data; they simply “walk in through the front door” by gaining access to the app through the login portal. This is why secure access controls are critical features for any expense management software. You want to ensure the software that you’re using includes access controls like two-factor authentication that will help keep login details secure.
#3: Secure Backups
Backups are crucial for any expense app, so you don’t lose critical data due to malfunctions or even security breaches. However, you want to make sure that any data stored in a backup is equally as secure as your primary data. Always look for apps that offer encrypted, cloud-based backups so you won’t be vulnerable to data loss or people accessing your data through your backup system.
Good Data Security Options are the Key to Customer Trust
Every day there seems to be another news story covering a data breach at a widely-used company, and each time this occurs, the affected company sees a major decline in consumer trust. By being proactive and only using software that meets a high standard for data security, you can ensure that your company isn’t next on this list.
Thankfully, there are tons of expense management platforms on the market that use leading-edge data security technology to keep your data safe and secure. For example, Expense Sensei is constantly rolling out new features to improve data security so that you can rest easy knowing that you and your client’s data are protected.