Why data protection is important

Explore by Category
By : Admin
Guide 15/05/2018 01:22pm
309 view(s)

In UK, the Data Protection Act (DPA) is a law that protects the personal and financial details stored digitally on a computer or in any organized paper filling system. Data protection is not just a legal necessity, but very crucial to protect and maintain your business. In this article we will learn about why data protection is so important.

What Sort Of Data Needs To Be Protected

Some of the key information that is stored by businesses includes employee records, customer details, transactions, loyalty schemes, or data collection. All such detail needs to be protected. The main reason to protect your data is to prevent them from being misused by third parties for fraud, such as identity theft and phishing scams.

Other common data that your business might store includes name, addresses, emails, telephone numbers, bank details, credit card details, health information and so on. All these data contains sensitive information. They could relate to your current work place, staff, shareholders, business partners and clients, customers and other members. All businesses are required to adhere to some specific principle in accordance with the Data Protection Act to protect all your information.


In order to keep your data safe, secure and lawful, the Data Protection Act contains a set of principles, which all the government, organizations, and businesses in UK have to adhere to. Such principles will ensure the data is only used specifically in the stated way, not stored for longer than required, used in relevant ways only, kept secure, used only as per the law, not transferred out of the European Economic Area and stored as per people’s data protection rights. All these principles comes into practice in business particularly whenever you are recruiting staff, amending staff records, marketing your products or services, or using CCTV.


The principles specified in The Data Protection Act are meant to help businesses ensure that the details of their staff, clients and customers are all protected. If you are a business manager or an employer, you will be solely responsible to ensure all information is correct. You also need to confirm it is correct with the party in question. Another crucial reason to follow proper data protection procedures is to prevent cybercrimes. The data protection act will ensure all details such as banking, addresses and contact information are protected to avoid fraud. Any breach in the data protection can be risky and costly. In the event of a data protection breach affected customers and staff can pursue compensation against your business. You may also have to bear punishment if you fail to comply with data protection.


Within the UK, the Data Protection Act is a key law. If for any reason you fail to comply with it, you will have to face some serious consequences. Violating data protection law can get you as well as your business prosecuted. You may also be charged with fines of up to £500,000. Further actions may be taken against you that could also result in a prison sentence. Therefore, it is crucial to adhere to data protection policies since the effects of non-compliance could be distressing for you, your business as well as your customers and staff.

There are number of reasons for spending so much time and effort on data protection. The primary reasons are to minimize financial loss, compliance with regulatory requirements, meeting customer expectation and maintaining high levels of productivity. Today computers have become an integral part of business operations and data requirements. So, without a proper data protection strategy, it will not be possible to keep all data safe.