Security: A Major Challenge for External Data Enrichment

The proliferation of digital data comes with an increasingly important issue: their security. This is equally true when it comes to enriching databases with external data. According to a recent study by Talend, 54% of companies express concerns about security when enriching with external dataItalic. This concern highlights the challenges and risks associated with using data from external sources.

First, let’s understand what data enrichment entails. It involves enhancing and improving a company's internal data by adding information from external sources. This can include demographic data, market information, purchasing behaviors, and more. The goal is to obtain a more complete and accurate view of customers, prospects, and markets to better guide business and marketing strategies. This helps refine and make marketing and internal processes more efficient.

For example, an e-commerce company can enrich its customer database with internet browsing data, social profiles, demographic information, or purchase histories to personalize offers and enhance the user experience.

Despite the obvious advantages, enriching databases with external data raises significant security concerns.

First, it raises issues of data privacy and protection. For years, the handling of external data has been restricted, particularly in how it is acquired. Since the implementation of GDPR, additional constraints have been imposed, making it crucial to protect data. Companies often fear that integrating external data could violate data protection regulations, such as GDPR in Europe. Customer data privacy is paramount, and any breach can lead to severe penalties and a loss of customer trust.

Moreover, external data can be inaccurate, incomplete, or outdated, leading to reliability issues. Companies must ensure that the integrated data is of high quality to avoid making decisions based on erroneous information.

Finally, using external data sources increases the risk of vulnerabilities. Companies can become targets for cybercriminals looking to exploit security gaps. Cyberattacks can lead to leaks of sensitive data, financial losses, and damage to reputation. As we know, hacking has become a popular activity for cybercriminals who can make significant money through data theft or ransom campaigns.

Recommendations

To minimize the risks associated with enriching databases with external sources, companies should adopt robust security practices. Here are some recommendations:

• Thoroughly evaluate data sources: It is crucial to collaborate with reputable data providers who adhere to security and compliance standards. Ensure you can trust them.
• Use encryption for sensitive data: Encrypting sensitive data and anonymizing personal data can help protect information from unauthorized access and data breaches.
• Ensure compliance with laws and regulations: Companies must ensure their data enrichment practices comply with current laws and regulations. This includes obtaining proper consent from individuals whose data is used and implementing rigorous data management policies.
• Implement continuous monitoring and auditing systems: These systems help quickly detect any suspicious or abnormal activity. Companies can then respond promptly to prevent or mitigate the impacts of security incidents.
• Train employees: Educate employees on best security practices and raise awareness about the risks associated with external data to strengthen the security culture within the organization.

Conclusion

As you can see, to fully benefit from external databases when enriching your company's data, rigorous practices and vigilance against risks are essential. Companies can enjoy the benefits of enriched data while protecting their most valuable assets: customer data and reputation. Security must be at the heart of any data management strategy.