How can businesses protect customer data when collaborating with third-party partners?

Businesses in North Dakota can take steps to protect customer data when collaborating with third-party partners. First, they can have a thorough and detailed contract in place that governs the use of customer data and how it is shared and stored. This contract should define proper access to customer data, how it is to be protected, how long it needs to be stored, who is responsible for its security, and what happens if there is a data breach. Second, businesses should conduct due diligence on any third-party partner that they interact with to ensure that their customer data is kept safe. This includes researching the partner’s security protocols, data privacy policies, and any history of data breaches. Third, businesses should regularly monitor their third-party partner to ensure that their data practices remain compliant with North Dakota privacy laws. These laws include the North Dakota Personal Information Security Law, which requires businesses to have reasonable security safeguards in place to protect customer data. Finally, businesses should regularly audit their third-party partners to ensure that their customer data is not being misused. This includes monitoring access logs for unauthorized access to customer data, conducting security scans to detect potential vulnerabilities, and performing internal reviews to identify any potential risks. These audits should be conducted on a regular basis to ensure that customer data remains secure.

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