Best Practices for Securing Locally Stored Employee Data

Many businesses are moving to the cloud, but others still retain some data in on-premises solutions. Local storage has many advantages, including providing more control over data security measures and practices. However, higher control also means more responsibility. Businesses that store employee data locally should carefully consider how they can keep it secure. Here are a few best practices for achieving that goal.

Review Data Collection and Storage Policies

The first step to improved data security is determining what information to collect. Businesses should review what they store and why they do so. It may present an unnecessary risk if not necessary, so they shouldn’t gather it to begin with.

Minimizing the data a company collects can also help comply with growing regulatory standards. Comprehensive privacy laws exist in at least five states and several others restrict the information employers can collect on their employees. These regulations will likely become more common and stringent, so it’s best to keep worker data collection and storage times to a minimum.

Limit Data Access

Businesses should limit access to data after minimizing what they keep on hand. It’s best to employ the principle of least privilege, which holds that each device, app and user should only be able to access what it needs. This restriction ensures the information has as small an attack surface as possible.

It’s important to remember that access restrictions are only effective if the system uses reliable authentication measures. Stolen or weak passwords account for more than 80% of hacking-related breaches. Multifactor authentication (MFA) is a better alternative.

Train Employees

Human error is another threat to locally stored employee data,  so addressing these mistakes is critical. Some organizational steps can help, with global workforces reporting 12% fewer mistakes than single-location teams, but security-specific training is also necessary.

All employees should know how to spot phishing attempts and why it’s important to use strong passwords. Regular tests and refresher training sessions will ensure workers practice and remember these steps. Employees with higher-level access privileges should meet more stringent security standards.

Employ Continuous Monitoring Software

Many companies already understand the need for anti-malware software and encryption, but additional software may be necessary, too. Continuous monitoring tools are increasingly important for data security today as breaches become more common.

Businesses often need more resources to monitor for potential breaches manually. Even if they did, humans are typically slow and prone to error. Automated alternatives enable faster responses and fewer mistakes, helping catch and contain hacks in less time. This helps minimize the damage.

Store Backups

Cybercrime evolves quickly today, and mistakes can happen even with a well-trained workforce and extensive technical protections. Consequently, businesses must prepare contingency plans for potential employee data breaches. That means keeping backups of critical information to ensure a hack doesn’t mean lost information.

Managing backups manually can be time-consuming, but today’s best vulnerability management tools include automated programs. These solutions ensure employee data stays up to date, minimizing the impact of a breach. It’s also important to secure, encrypt and ideally hold this information in cold storage.

Employee Data Must be Secure Regardless of Location

Security is paramount, whether businesses keep employee data on the cloud or on-premise. Organizations that store this information locally should employ best practices to make the most of the control this storage option offers.

Businesses will likely store more employee data as digital transformation continues, making them even larger targets. This trend raises the need for security even further. That can be a concerning shift, but following these best practices will ensure organizations stay safe regardless of what threats they face.

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Devin Partida

Devin is editor-in-chief of ReHack Magazine at ReHack.com. Devin is especially interested in projects related to technology, startups, women in tech, the IoT and data security.

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