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Data security refers to a holistic range of techniques and protocols meticulously crafted to shield digital data and sensitive information from unauthorised entry, breaches, theft, or corruption. Failing to guard and secure data in a digital product can lead to profound repercussions for both the product and its brand.

The cost of failure

The negative impact of a data breach stretches far beyond monetary cost alone. Reputational damage can significantly impact brands, potentially leading to even more severe consequences such as reduced productivity due to operational disruptions and diminished consumer trust.

• Disengagement – consumers who have fallen victim to a data breach are more likely to disengage with that digital product. According to Centrify, 65% of data breach victims lost trust in an organisation due to the breach. Additionally, IDC revealed that 80% of consumers in developed nations would switch brands if their information were compromised in a security breach.

• Punitive action – brands may also be subject to harsh penalties from regulatory bodies in the form of fines which, as regulators seek to take a more robust approach to data security. Recent changes to the law mean that Australian firms could be fined up to $50 million for a data breach. Key individuals may also face criminal penalties or fines levied against themselves personally, up to the value of $2.5 million under new data protection laws.

• Underperformance – studies have shown that companies that experienced a data breach will underperform on the stock market. This can alienate investors leading to further stock devaluation.

• Adverse media -data breaches routinely make the news, even those on the ‘smaller’ side. Such adverse media coverage can deal a catastrophic blow to brands that rely heavily on their reputations.

The inability to overcome security challenges can have a serious impact on its customers when a data breach occurs.

• Recovery efforts – dealing with the aftermath of a data breach can be time-consuming and frustrating. Consumers may need to spend hours on the phone with banks, credit providers, and government agencies to resolve issues related to identity theft.

• Fraud exposure – personal data is highly sensitive and customers who have had theirs stolen are far more likely to become a victim of fraud and identity theft.

Ensuring data privacy through digital product design

In the modern digital ecosystem where breaches are an increasingly damning reality, ensuring data security with a tailored approach to product design is key.

Such “security by design” approaches, whereby product security is proactively engineered into a digital product in the design phase, is a growing trend, and it can be implemented by organisations in a variety of ways. Below are some tips:

1. Use encryption

Use strong encryption standards to safeguard sensitive data against breaches during both transmission and storage. The level of sensitivity associated with the data should correlate with the complexity of the encryption method employed.

Secure Socket Layer (SSL) or Transport Layer Security (TSL) are two examples of encryption standards that can and should be used to encrypt data in transit. When it comes to stored data, adopting a decentralised database is recommended, accompanied by rigorous encryption algorithms for heightened security.

2. Limit personal data collection

Avoid accumulating excessive amounts of irrelevant data as it heightens the vulnerability to potential attacks. This stems from the increased likelihood of housing valuable information for threat actors—an undesirable scenario.

Rather, prioritising the collection and retention of solely essential data is integral to a digital product’s functionality. If unessential, forgo data collection altogether, and curtail the storage duration of sensitive information to diminish the susceptibility of your digital product being targeted.

It is also a good idea to ensure compliance with relevant data protection regulations such as the GDPR (General Data Protection Regulation) or CCPA (California Consumer Privacy Act).

3. Implement secure authentication

If a digital product is the type that requires user authentication, implement more secure authentication methods, surpassing basic usernames and passwords.

Multi-factor authentication (MFA) and two-factor authentication (2FA) are two examples of secure authentication techniques that have been shown to block 100% of automated bot attacks, 96% of phishing attacks, and 76% of targeted attacks. While these methods might increase the potential for user lockouts, it’s essential to establish a re-entry process.

To strengthen authentication, users should be encouraged to create strong and unique passwords and use secure password storage methods to protect credentials in the event of a breach.

4. Adopt the least privilege principle

The principle of least privilege states that security architecture should be designed in a way that each entity is granted the minimum system resources and authorisations that it needs to perform its function. In other words, a user is only given access to the functionality it needs to perform its intended task(s).

This principle helps to limit the potential impact of a security breach if a user account or system is compromised and taken over by threat actors because they’ll be limited in what they can see and do.

5. Push regular updates

The threat landscape is constantly evolving, and threat actors are finding new ways each day to exploit loopholes and vulnerabilities that you might not be aware exist. These are not limited to your product; they can arise in third-party software, code libraries, and frameworks but still put it at risk.

To mitigate this risk, it’s a security imperative to carry out and push regular updates to your digital product, particularly if you are using any third-party tooling. Also, ensure that any third-party data protection programs are kept up to date where applicable.

6. Secure APIs, third-party integrations, and user inputs

When integrating with third-party services or APIs, carefully assess their security practices to ensure they meet the required standards and, as mentioned in point five, make a habit of checking for any software or security updates and implement them immediately. When integrating third-party services or APIs, carefully assess their security practices to ensure they meet the required standards.

7. Use security headers

Consider using security headers to add an extra layer of protection.

HTTP headers like Content Security Policy (CSP), Strict-Transport-Security (HSTS), and X-XSS-Protection, for example, are used to configure security defences inside of web browsers and can help prevent several types of attacks such as clickjacking and cross-site scripting.

8. Conduct regular audits

It’s difficult to sufficiently secure a product that’s not periodically tested and audited against system standards and goals. Regular audits and vulnerability assessments help identify potential security flaws and weaknesses in a digital product before threat actors do.

Processes like penetration testing, whereby ethical hackers are tasked with attacking systems, are ideal for simulating real-world attacks and giving you an overview of your security resilience.

Incorporating privacy into digital product design

What used to be a minor consideration for designers now needs to be a core part of the entire design process, right from start to finish, and then carried through to production. This approach is essential for organisations to stay ahead of the latest risks to the security of their digital products and effectively prevent attackers from trying to steal their data.

Adrenalin is a leading digital product and technology agency for Australia’s top brands and organisations. Stay informed about the latest digital product trends, strategies, and tactics by subscribing to the Adrenalin newsletter below.

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