Businesses need to show caution with data security and mobile phones

Businesses need to show caution with data security and mobile phones

A number of companies are now allowing employees to use their personal mobile devices to connect to company networks. While this may be a major benefit for workers, it could open ecommerce companies up to potential security vulnerabilities. These businesses must exhibit strong IT security practices, otherwise they risk putting their customers' private payment information in jeopardy.

"If your company stores, transmits or processes PHI (Protected Health Information) or CHD (Cardholder Data), you need to be aware of the dangers of that data landing in the wrong hands due to poor mobile phone security," the Smart Data Collective said. "Not only that, but both HIPAA and PCI compliance regulations assign large fines and penalties in the event of a data breach."

Gartner puts the worldwide sale of smartphones at 440.5 million in the third quarter of 2011, which was up 5.1 percent from the same period last year. The research company said the increase in sales stems from large inventories of devices, which should be sold by 2012.

With more employees accessing and working with valuable information on their smartphones, companies need to make sure their data security is up to par so they can keep customers safe with each transaction.