How To Secure Third-Party Data Sharing?

October 25, 2023 34

The need for sharing data with other companies has become very important. Partnerships and working together are the new way of doing business. Data is essential for businesses, and it flows between companies to create opportunities and help them grow. But, this also means that we need to be very careful about keeping that data safe.

Sharing data with other companies can be like a two-sided coin:

1. On one side, it helps businesses work more efficiently, come up with new ideas, and grow.
2. On the other side, it can make businesses vulnerable to data breaches, where sensitive information is exposed to the wrong people.

So, the challenge for businesses is not whether to share data but how to do it in a safe way.

In this article, we will talk about the complexities of sharing data with other companies, look at the risks involved, and give a plan for making sure the data stays secure.

Understanding the Risks of Sharing Data with Other Companies

Sharing data with other companies means that one company shares its data with another. This is happening more and more because companies are working together. But, this also means there are more risks if the data isn’t protected properly. Some of these risks include:

– Not controlling who has access to the data.

– Not encrypting the data during transfer or when it’s stored.

– Not having strong security settings.

– Not keeping an eye on what’s happening.

– Problems with the software from the other company.

– Weak password rules.

A good example of what can go wrong is the Equifax data breach in 2017. Around 143 million people’s sensitive information was exposed because of a problem with software from another company.

Best Practices for Safe Data Sharing

To share data safely, you need to follow some important rules. Here are the key ones:

1. Use Secure Data Transfer Protocols: These are like safe paths for your data to travel between companies. They include things like SFTP, HTTPS, FTPS, and IPSec. You should choose the one that fits your data and your needs.
2. Anonymize Data: This means hiding sensitive data while still making it useful. You can do this with techniques like data masking, pseudonymisation, generalisation, shuffling, or creating synthetic data.
3. Check Your Partners: Before sharing data, check if the company you’re sharing with follows the rules for data protection and has good security practices.
4. Build Trust: Trust is very important. You should talk to your partners about security and be clear about how you use, store, and protect data. Sharing security audits and reports helps, too. Everyone needs to work together to keep the data safe.

Case Study: Cisco’s Safe Data Sharing

Cisco is an example of a company that shares data safely. They use secure protocols, anonymize data, and carefully check their partners. They talk openly about security and educate their partners. This approach has made their data sharing very secure.

In Conclusion

Sharing data with other companies is crucial in today’s business world. To do it right, follow best practices to keep data safe. Balancing security and collaboration is key. When everyone involved takes data security seriously, it paves the way for a safer and more cooperative future. These guidelines will help your business take advantage of data sharing while staying protected. If you want to start your cyber security journey, check out our SOC Analyst training.