What Is PII and How Can an MSP Help Your Business Protect It?

Protecting personally identifiable information (PII) is as vital to your business as locking the office doors at night. For small and midsize businesses (SMBs), securing data like Social Security numbers, credit card details, and biometric information is essential to maintaining trust and deterring cyberattacks.

The stakes are high for SMBs. Laws like the California Consumer Privacy Act (CCPA) and the Health Insurance Portability and Accountability Act (HIPAA) require strict safeguards for PII, with fines reaching up to $7,500 per violation. 

Non-compliance risks include financial penalties, lawsuits, identity theft, reputational damage, and operational disruptions.

Partnering with a managed service provider (MSP) offers SMBs an affordable way to enhance PII security. MSPs implement encryption, access controls, and employee training to protect sensitive data and ensure compliance.

Key Takeaways

• Mishandling medical records, classified as Protected Health Information (PHI), violates HIPAA and risks severe penalties and loss of trust.
• Non-compliance with privacy laws like CCPA can result in devastating fines and erode customer trust.
• MSPs provide critical safeguards like encryption and multi-factor authentication to protect PII and keep your business compliant.

What Is Personally Identifiable Information?

Personally identifiable information, or PII, refers to any data that can identify a specific individual. It includes sensitive information, such as social security numbers and biometric data, and non-sensitive PII, like phone numbers and IP addresses. 

Examples of PII include:

Sensitive Data

• Social Security numbers
• Credit card numbers
• Driver’s license numbers

Less Obvious Identifiers

• Full names
• Account numbers
• Passport numbers 

Protecting PII is critical because a data breach involving this information can lead to identity theft, significant financial loss, and operational vulnerabilities. 

Businesses must understand the types of PII they collect to ensure strong safeguards and compliance with data privacy regulations.

Why Is Protecting PII So Important for Businesses?

Data breaches involving PII can have devastating consequences for businesses. Financial costs include regulatory fines, class action lawsuits, and lost revenue. A breach can also severely harm a company’s reputation, leading to a loss of client trust and a decline in market position.

Operationally, businesses may face disruptions due to the time and resources needed for incident response and recovery. Even a single breach can jeopardize a company’s financial health and long-term success without proper safeguards. 

Safeguarding PII is not just a regulatory requirement but a critical component of risk management.

How Can an MSP Help You Protect Personally Identifiable Information?

Managed Service Providers (MSPs) are invaluable partners in protecting PII for small and midsize businesses. Here are some of the ways we can help your company keep personally identifiable information secure.

Data Encryption 

Encryption is a cornerstone of data security. MSPs use advanced encryption techniques to ensure that PII remains unreadable even if it is intercepted during a data breach. This includes encrypting sensitive data such as health information and credit card numbers. 

Access Control and Authentication

Preventing unauthorized access to PII requires proper access controls and multi-factor authentication. 

MSPs help businesses implement these measures, ensuring that only authorized personnel can access sensitive information like social security numbers, account numbers, and driver’s license numbers. 

Multi Factor authentication adds an extra layer of protection by requiring multiple verification forms.

Regular Security Audits and Compliance Checks

MSPs conduct regular security audits to identify vulnerabilities in systems and processes. 

These audits help businesses comply with regulations such as HIPAA. Compliance checks ensure that businesses stay up-to-date with evolving privacy laws, reducing the risk of fines and penalties.

Employee Training and Awareness

Human error is one of the leading causes of data breaches. MSPs provide ongoing training to help employees recognize phishing attempts and practice strong information security habits. 

This proactive approach reduces the risk of PII being exposed through social engineering tactics.

Disaster Recovery and Incident Response

A comprehensive incident response plan is essential for minimizing the impact of data breaches or cybersecurity incidents. MSPs help businesses prepare for and respond to such events, ensuring a quick recovery while protecting PII from further exposure. These services include data restoration and system recovery to mitigate downtime.

How Does Parachute Fit Into Your Cybersecurity Plan?

At Parachute, we understand small and midsize businesses’ unique challenges when protecting PII. Our team specializes in providing tailored solutions that safeguard sensitive information and ensure compliance with privacy laws.

We offer a range of services designed to meet the evolving needs of your business:

• Custom compliance solutions for PCI DSS, HIPAA, and CCPA.
• Expertise in protecting sensitive data through encryption, employee training, and regular risk assessments.
• Ongoing support to help your business align with privacy laws and guard against emerging cybersecurity threats.

At Parachute, we’re dedicated to helping businesses like yours protect sensitive data and comply with evolving privacy laws—partner with us to secure your PII and maintain trust. Contact us today to get started.