E-commerce and multi-level marketing (MLM) businesses handle a considerable amount of customer data every day.
These businesses use this data to personalize customers’ shopping experiences, increase sales, and build stronger customer connections.
Handling such large amounts of customer data poses several security challenges, especially if you outsource customer support.
Data breaches and other privacy concerns can harm your reputation and have severe legal and financial consequences.
The question is: How can you safely navigate outsourced customer support while protecting your customers’ data?
You’ve come to the right place for answers!
In this blog, we’ll discuss how you can safeguard your customers’ information when outsourcing your customer support to a BPO provider.
Understanding the Risks of Outsourced Customer Support Data Security
Outsourcing customer support can help you:
- Save money
- Leverage support expertise and experience
- Ramp your customer support needs up or down quickly according to your needs
However, outsourced customer support also has risks, especially regarding data security. When outsourcing customer support, you share sensitive customer data with your outsourced teams.
Potential Information Security Threats in Outsourced Operations
Here are some potential security threats when outsourcing customer support operations:
1. Data Breaches
The e-commerce industry is a frequent target of data breaches and cyberattacks due to its inherent nature of handling massive amounts of sensitive customer data, such as credit card numbers and physical addresses.
Data shows that approximately 83% of e-commerce platforms were victims of at least one major hack in 2020.
These data breaches can cause serious reputational, financial, and legal harm to your business.
2. Insufficient Security Measures
Outsourcing business functions like customer service can be risky because your BPO partner may not have robust data handling and security protocols. Relying on a third party without strict security measures can increase your business’s risk of data exposure.
3. Compliance Violations
Securing customer data can be challenging when outsourcing, especially if your BPO partner is in a different region.
4. Insider Risk
Outsourced team members may accidentally or purposefully put sensitive customer information at risk.
An example of an accidental security incident is if a team member has customer information pulled up on their work computer and neglects to lock it after ending their shift.
Meanwhile, a purposeful security incident is when a team member copies customers’ credit card information and uses it for personal transactions.
5. Increased Access Points
Outsourcing customer support operations does not automatically lead to more individuals accessing sensitive information.
Data breaches and cyberattacks are based on security measures, not on your employees’ location. Whether your team is in the same city or working remotely, it’s essential to uphold strong data security measures to handle and reduce risks successfully.
However, we cannot deny that the more people can access customer data, the greater the risk of data breaches and cyberattacks.
6. Diverse Security Standards
Data security protocols vary among countries and companies, so set strict security protocols for your outsourcing partner and ensure they follow.
7. Human Error
Unless your customer support consists entirely of AI tools like chatbots, your agents are still humans who can make mistakes.
Human customer service representatives can leak or mishandle data without meaning to, even with proper training.
6 Best Practices for Protecting Customer Data When Outsourcing
Proper planning is essential for protecting customer information during outsourcing and mitigating the data security risks mentioned above.
Your plan should prioritize screening potential partners and verifying their security protocols.
Here are some factors you can consider:
1. Thorough Company Selection
Verify your potential BPO partner’s security protocols by checking the following:
- Reputation and track record
Choose a reliable partner with a solid data security track record and zero instances of data breaches.
- Certifications and standards
Your potential BPO partner must adhere to the International Organization for Standardization/International Electrotechnical Commission (ISO/IEC) Standard, General Data Protection Regulation, and other relevant national and international security standards.
- Security policies
Review your potential BPO partner’s security rules, specifically their procedures for handling data security emergencies and data protection measures.
2. Implementing Robust Security Protocols
After choosing your BPO partner, implement these security protocols to safeguard your customers’ information:
- Data encryption
Encrypt all customer data during transmission and storage to avoid unauthorized access.
- Access controls
Only specific people should have access to customer information and must log in using additional security layers like multi-factor authentication (MFA).
- Regular security audits
Conduct regular security to determine potential security lapses and review who can access which information.
3. Ensuring Compliance with Regulations
Your BPO partner must adhere to international data protection laws, like the GDPR, even if they don’t operate in the EU.
Ensure your partner follows security rules by implementing the following:
- Legal agreements
Create detailed contracts specifying data protection obligations, including adherence to GDPR and other industry-specific rules.
- Continuous training
Conduct regular training (including refresher courses) to instill in your outsourced teams the importance of data security and following specific protocols.
- Monitoring and reporting
Monitor your security protocols to quickly handle any rule-breaking and ensure your outsourced teams follow the rules.
4. Data Reduction
Limit the customer information you provide to your BPO partners; provide them with only the information they need to handle customer problems effectively.
5. Frequent Checks and Supervision
Perform regular security evaluations of your BPO partner’s systems and procedures. Remain alert and watch for suspicious activity or data breaches.
6. Training for Employees
Train your team in data handling best practices. All team members should know how to handle information safely, use strong passwords, and avoid scams.
Advanced Strategies for Enhancing Data Security
Here are two strategies for advanced data security:
1. Using Cutting-Edge Security Technologies
Leveraging these technologies can improve data security for BPOs or contracted customer support services.
Artificial Intelligence (AI)
AI-driven security solutions can automatically detect and stop possible security risks. AI can quickly examine data to identify irregularities that may signal security breaches.
- Darktrace
Darktrace uses artificial intelligence to observe networks and machine learning to examine users’ and devices’ standard action patterns.
When it detects abnormal behavior (e.g., an employee’s account unnecessarily accessing sensitive information), the system restricts the account and notifies the security team to avoid a potential data breach.
Blockchain Technology
Blockchain technology can provide clear and safe data exchanges, ensuring data integrity and lowering the risk of modifications. Every transaction documented in a blockchain is encrypted and connected to the previous transaction, forming an extremely resistant chain to tampering.
- Provenance
External engineering firms leverage Provenance for project documentation management.
The blockchain ecosystem helps guarantee the logging of all document alterations in the blockchain, establishing an auditable record. This record enhances data security by making unauthorized changes more visible.
Cloud Security
Cloud security services offer robust protection and compliance features to guarantee the security of cloud-stored data. Typically, these services include encryption, overseeing identity and access, and timely security updates to thwart emerging threats.
- Salesforce
Many BPO providers use Salesforce, a cloud-based CRM system offering security features like:
-
- Full encryption
- Dual-factor authentication
- Compliance with global data protection
Using Salesforce makes preventing unauthorized data access and security breaches much more manageable.
2. Creating a Security-Oriented Culture
Foster a security-first culture by following these best practices:
Commitment to Leadership
The company’s leaders must prioritize data security and set a good example for others. When executives and managers show a firm dedication to security practices, it establishes a benchmark for the whole organization.
Employee Engagement
Every employee must participate in implementing data security measures and should feel supported in reporting any security problems or worries.
Instill a security-oriented mindset into your employees by:
- Conducting regular training sessions
- Opening communication channels for reporting incidents
- Fostering a sense of responsibility among employees
For example, you can conduct a quarterly training program on data security for all employees. Creating a confidential reporting system for security matters is ideal because employees can report problems without worrying about retaliation.
Continuous Improvement
Continuously improve your process by regularly upgrading security measures to address evolving threats. This process can involve staying on top of security trends, conducting regular audits, and implementing new technologies and strategies as needed.
- Nessus
Your BPO partner can use tools like Nessus to conduct annual security audits and quarterly vulnerability assessments. They can use the findings to improve security measures and dedicate resources to implementing new technologies to address known weaknesses, ensuring you stay ahead of potential risks.
Essential Security Considerations for E-commerce and MLM Businesses
Consider the following if you manage an e-commerce or MLM business and want to secure your customers’ information:
E-commerce Industry
The e-commerce industry is at risk of many data security vulnerabilities because it deals with large amounts of transactions and sensitive customer information.
Securing customer data when outsourcing in e-commerce requires:
Payment Card Industry Data Security Standard (PCI DSS) Compliance
To safeguard payment information, ensure your third-party associates comply with PCI DSS standards, including:
- Safeguarding network security
- Securing cardholder data
- Addressing vulnerabilities
- Enforcing strict access control
- Consistently monitoring and testing networks
- SecurePay
SecurePay is a payment processing platform compliant with PCI DSS, guaranteeing the encryption of all transactions and secure cardholder data storage by PCI DSS regulations.
Fraud Prevention
Use advanced methods to identify and stop fraudulent transactions to protect against them, including using machine learning algorithms and real-time analytics to identify actions that may be suspicious.
- FraudShield
FraudShield utilizes machine learning algorithms to evaluate transaction patterns and identify potential fraud in real time, preventing fraudulent transactions.
Customer Privacy
Ensure customer data protection by de-identifying personal information whenever feasible and disclosing only necessary information. Utilize data masking and encryption methods to safeguard confidential data, including:
- DataGuard
DataGaurd provides anonymization and encryption to ensure compliance with data protection regulations and protect your customers’ sensitive data.
MLM Industry
The MLM business focuses on personal connections, trust, and keeping data safe. Key elements to take into account include:
Data Segmentation
Segment information to guarantee that solely approved individuals can reach sensitive data. This technique reduces the chances of data breaches and unauthorized entry.
- Twilio Segment
Twilio Segment manages sensitive information access according to user roles and duties, improving data security.
Communication Security
Establish secure communication channels to safeguard private conversations and information from unauthorized intrusion, such as encrypted messaging platforms and secure email services.
- SafeChat, an encrypted messaging tool, and SecMail, a secure email system, guarantee the confidentiality of all internal and external correspondence.
Reputation Management
Maintain a trustworthy and reputable image by openly addressing data security worries and communicating well with distributors and customers. Be proactive in handling and addressing possible data breaches.
- Reputation Management Software
Reputation management tools like Birdeye make it easy to track online references, handle customer reviews, and offer communication strategies to handle data security problems promptly and efficiently.
How ClearSource Plays a Role in Ensuring Data Security and Compliance
At ClearSource, we understand the significance of safeguarding customer data during outsourcing. We ensure data security and compliance by delivering solutions tailored to E-commerce and MLM businesses.
We offer:
- Reliable customer support
Our customer support services focus on security to ensure your customer information is always safe.
- Management of compliance
We will help you understand and follow data privacy laws to protect customer information when you hire another company to do a job.
- Customized solutions
We adjust our services to suit the unique requirements of your sector.
Choosing ClearSource means your customer data is secure, so you can focus on growing your business without worries.
Get in Touch With ClearSource Today
Are you ready to focus on providing outstanding customer service using outsourced support?
Contact ClearSource today to learn how we can assist you in meeting regulations and protecting sensitive data.
Allow us to provide you with the assurance of having secure and compliant customer support operations!
