Cybersecurity Requirements for Businesses Handling Customer Data

If your business collects or stores customer data, you have a responsibility to protect it. And in many cases, it’s not just best practice — it’s the law.

Here’s a quick look at what small businesses need to know about data protection and compliance.

1. Understand What Counts as "Customer Data"

This can include names, email addresses, phone numbers, credit card info, health records, and more. If it can identify a person, it likely qualifies.

2. Know Which Regulations May Apply

Depending on what data you collect and where you operate, you may fall under:

• Massachusetts 201 CMR 17.00 (data protection law for businesses in MA)

• HIPAA (if you handle health-related data)

• GLBA (if you work in financial services)

• FTC Safeguards Rule (for certain covered businesses)

3. Adopt Reasonable Security Measures

Many laws don’t dictate exact tools — they require "reasonable" protection. This can include:

• Employee training

• Strong passwords and MFA

• Firewalls and encryption

• Data access controls

4. Document Your Policies and Practices

Written policies show that you’re taking data protection seriously. They also help employees know what to do and when.

Our Final Thought:

You don’t need to be a compliance expert to start protecting customer data. A few practical steps can keep you aligned with the law — and protect your business from fines, breaches, and lost trust.

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