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Data Storage and Data Privacy Rules, What Do I Need to Know?

Computer Data Security

Know the Laws for Data Privacy Before Buying Server Racks

by TechRack Systems

Did you know that there are many privacy rules that impact the way that you can store your data? This is important when evaluating options for large server racks and even small computer cabinet purchases. Many large organizations have an IT infrastructure and measures in place to safeguard these privacy rules. However, smaller businesses and offices often don’t have an IT department, so they may not be aware of these security requirements. Whether it’s government-mandated HIPAA laws that protect medical information, laws that oversee the financial industry, or government regulations that affect military contractors, knowing the rules will not only safeguard data, it will shield you from violating any applicable laws.

As a starting point, across the board for both online and off-line businesses, installations that are subject to confidential data requirements must keep their server racks and cabinets in either a locked room with limited access or in an enclosed space, or under lock and key in an open area. For both situations, only authorized personnel should be able to access this private data. Though it may seem “overly protective” in a one-person office, these laws mandate this regardless of the size of a business (and imagine if someone broke in and stole the computers).

So What Information Needs to Be Protected?

  • Medical: The Health Insurance Portability and Accountability Act of 1996, or HIPAA, protects individually identifiable health information from being released against a patient’s will. This means personal medical data needs to be secured at all times, whether in an individual doctor’s office or a large hospital complex.
  • Military Contractors: Just as the U.S. government has strict regulations on handling sensitive data and classified material, military contractors are subjected to the same stringent requirements as an extension of the government. From office equipment logs to personnel records to matters of national security, the data must be in a physically secure storage area. (On a similar note, delivering server racks to both military installations and their government contractors can mean cutting through more red tape than deliveries to traditional, commercial locations. See more here from TechRack’s previous post.)
  • Financial Records: Banking regulations, acts of congress, and FTC consumer protections require that financial information be stored securely. These laws apply to any company hosting personal financial information: banks, brokerage companies, retirement planners, insurance companies, and those that provide credit scores, to name a few. Data protection has come under more scrutiny in recent years given the increased frequency of data breaches coupled with the rise of hackers. It also underscores the importance of starting off with a strong foundation to secure the physical data.

In addition to these rules and regulations, follow these common sense, practical guidelines when hosting confidential information in data servers and cabinets:

  • Store private data in work areas that are protected against damage from physical hazards, including fires, floods, and earthquakes
  • Ensure that your computer inventory levels are carefully monitored on a regular basis (and that backup measures are in place should a disaster occur)
  • Authorize the minimal number of employee access to restricted, secure storage areas
  • Make sure that you use USB Port Locks
  • Consider Security Wire Racks

To find out more about secure data storage options, check out our locking server and cabinet selection.