Network Company Data Security

Data integrity is crucial in network marketing, as information is the most valuable intangible asset of a business. In this article, we will discuss the types of threats, why it is important to protect the critical data of your project, and how to do it.

What Company Data Is and Why It Needs Protection

Just as you protect your personal tangible assets (for example, by installing a car alarm or setting up two-factor authentication at the bank), businesses also need protection. When aiming to create a sustainable, long-lasting network company, consider a risk management strategy and do not skimp on the details that ensure the security of the project, especially in cyberspace.

Company data (English data) is an intangible asset, informational capital.

As the project progresses, the amount of critical data that should not fall into the wrong hands increases. This refers to personal information of customers and employees, distributor hierarchy within the structure, and any other information related to the company's business processes.

The main motive behind cyberattacks is financial gain. As the saying goes, data is the new gold — information can be bought/sold on the black market or used for forging documents. In a scenario where a large portion of financial transactions occur online, hackers can infiltrate an organization's system to sabotage its operations, steal money, or personal data of partners.

Legislative initiatives to ensure cybersecurity

Each country has its own laws controlling the safe operation of online businesses. The General Data Protection Regulation (GDPR) adopted by the European Union aims to deepen the principles of personal data protection. Companies must also register with authorized state cyber protection authorities to assess the volume of personal data collected and processed. Enterprises that ignore the basic requirements of their country's relevant regulatory authorities may face punitive sanctions.

Common scenarios of attacks on network companies

Security is one of the most important factors in direct sales business, as it is always associated with large volumes of data, which is a "tasty morsel" for fraudsters. In MLM enterprises, a large number of people are involved (employees, distributors, buyers, suppliers, etc.), and in order not to lose the trust of their distributors, strengthen the image and reliability of their brand, network projects develop several levels of security.

Most often, partner companies face massive DDoS attacks aimed at disrupting the business system.Sometimes hackers automate such bot attacks and use them to distract the security service, find vulnerabilities, and hack the organization's platform. In addition to external threats, there are internal ones - an inattentive employee can cause more harm to the company than a random DDoS attack.

Reports from the Ponemon Institute and IBM Security indicate that the main cause of major cyber attacks is related to internal factors and system deficiencies.

Among the most common ways hackers penetrate a system are:

- Social engineering and phishing. By using psychology knowledge and manipulation, a hacker achieves attack goals through a person's voluntary consent. In simple terms, users are cleverly deceived, and they carelessly provide cybercriminals access to confidential or important information.

- External data sharing, for example, through email or corporate accounts. Usually, information leakage occurs due to carelessness and inattention—

When an email is sent to the wrong email address or accidentally published on public platforms.