While the general public may not be aware of it, the freight industry relies very heavily on high-tech digital systems to manage logistics, coordinate with clients and partners, as well as track shipments. However, with this system also comes the need to manage all of the sensitive data that must be on hand to properly conduct business. There is a very real need for freight companies to do all that they can to avoid data breaches. Here are 4 of the top reasons why freight companies should care about and be proactive regarding data breaches.
1. Maintain the Trust of the Client
With all of the well-publicized data breaches that have recently occurred, it should be no secret to any freight business owner that customers will very quickly stop using a company’s services if they feel they cannot trust them. Therefore, it is of the utmost importance that a company protect this trust by protecting the data of clients and customers whom with they do business.
2. Regulatory Compliance
The freight industry is one of the most highly regulated industries in the country. This means that a business needs to ensure it is compliant with everything that the government mandates, including data protection. Failure to maintain the minimum safety standards that have been put into place can result in fines and other penalties, and in the most egregious cases, closure of the company itself. Obviously, this is not something that any freight business owner wants to happen so it makes much more sense to simply adhere to the industry-accepted safeguards regarding private data.
3. Avoid Financial Loss
Any incident that occurs regarding a company and a data breach is going to end up in lawsuits being filed against it. In a perfect world, this would never happen, but in the real world, all companies are susceptible to the actions of computer hackers. However, the financial penalties will be more severe if the court finds that there was a lack of security on any part.
4. Continuous Operation
The backbone of any freight company is the ability to maintain continuous operation so that packages can keep moving in the system to their destinations. However, any type of cyberattack or data breach can result in a slowdown or even a complete stoppage of operations. This can be catastrophic for any size business, but more so for those that are considered small or medium-sized. To mitigate the risk of this happening to a company, it is crucial to invest in data security. By doing so, a freight business is protecting not only client data but proprietary information as well. This also boosts shareholder confidence in the freight company.
As the article shows, there are plenty of solid reasons why protecting private data should be a top priority for any freight company, no matter how big or small they are. Look for an experienced cybersecurity company that has worked with businesses similar to the intended industry. By investing in top-level data security, a freight company is strengthening its future by ensuring customer and client loyalty and avoiding unnecessary penalties for not complying with government regulations.
