Outsourcing call center operations makes sense for efficiency. However, with data breaches making headlines, customers are increasingly wary about where their personal information goes.
Just look at what happened to 23andMe. In late 2023, hackers accessed the genetic profiles of nearly 6.9 million people, exploiting reused passwords and inadequate security measures. Though the company blamed users for weak credentials, customers didn’t care—their sensitive ancestry and health data had been leaked. The backlash was swift: a wave of lawsuits, a plummeting reputation, and an erosion of trust that continues to affect its reputation.
This is the reality brands face. Customers don’t care whether a data breach happens on your watch or your vendor’s. If their information is exposed, your reputation takes the hit.
That’s why call center outsourcing can feel like a risk. But it doesn’t have to be. With a compliant, vigilant, and transparent outsourcing partner, you can enjoy the benefits of outsourcing without compromising customer trust.
Let’s explore how to secure your outsourcing strategy and keep your customer data out of the wrong hands.
UNDERSTANDING DATA SECURITY RISKS IN CALL CENTERS
According to Statista, a staggering 423 million data records were leaked during the third quarter of 2024 alone. The more hands that touch sensitive data, the higher the odds of a costly security slip-up. Here’s what you need to know.
Types of Data Handled By Call Centers
Call centers handle tons of sensitive customer data. This may include their names, addresses, credit card details, Social Security numbers, buying habits, and medical records (if you’re in healthcare).
A hacker getting this information could lead to identity theft and customer lawsuits knocking on your door.
Consider a bank’s customer support center, for example. If security measures are weak, a malicious employee could sell credit card details on the dark web, or a hacker could siphon off funds with a phishing attack.
Potential Data Breach Threats
Data breaches come in many forms, and businesses can’t afford to take them lightly.
- Cyberattacks: Hackers use various tactics, such as phishing and ransomware, to breach systems. Research shows they’re growing “more sophisticated,” putting organizations at constant risk.
- Unauthorized Access: Without strict access controls, a temporary contractor could access VIP client accounts.
- Human Error: A simple email sent to the wrong recipient can expose thousands of customer records. The Information Commissioner’s Office categorized around 80% of data breaches as caused by human error.
Potential Consequences
Violating regulations like the GDPR (General Data Protection Regulation), CCPA (California Consumer Privacy Act), PCI-DSS (Payment Card Industry Data Security Standard), or HIPAA (Health Insurance Portability and Accountability Act) can cost millions in fines. Even worse, you lose customer trust.
Nobody would appreciate customer service telling them their data is compromised due to a security incident.
BEST PRACTICES FOR DATA SECURITY IN CALL CENTER OUTSOURCING
Investopedia mentions that outsourcing helps businesses “cut labor costs” and “focus on the core aspects of the business.” However, one wrong move can leak your customers’ data and damage your company’s reputation.
Here are a few practices to consider to avoid such unpleasant instances.
Before diving into those best practices, ensure you have a structured way to evaluate your provider’s security standards.
📥 Download our Vendor Security Checklist to assess how well your outsourcing partner protects sensitive customer data: ➡️ Get the checklist here
It covers everything from encryption protocols to employee training, helping you identify potential red flags before signing a contract.
Encryption and Anonymization
Keeping hackers out is an obvious data security tactic. But making data useless once it’s breached is a more thoughtful way to protect data. IBM highlights that encryption converts “readable plaintext into unreadable ciphertext.”
So, even if someone intercepts data, they see indecipherable text.
This is important for data in transit (when sent between systems) and at rest (when stored).
For example, when a customer shares their credit card details over the phone, encryption ensures that even if a hacker tries to eavesdrop, they won’t be able to make sense of the data.
On the other hand, anonymization takes security a step further by removing identifiable details. Call centers can replace real credit card numbers or Social Security Numbers with randomized tokens without value outside their system.
For example, they’ll store something like “User X, Token 98765” rather than “John Doe, 1234-5678-9012-3456.”
This method protects privacy even if security measures fail.
Access Controls and Monitoring
In an outsourced call center, multiple agents interact with customer information daily. Businesses must ensure that only authorized personnel can view or modify data. This will limit the exposure to potential leaks.
Role-based access control (RBAC) could be a reliable strategy here. This is where agents only see the information they need to do their job, while sensitive data like payment details remain hidden.
Without these restrictions, a disgruntled employee may pull customer records and disappear before anyone notices.
Also, you must monitor for suspicious patterns to catch threats before they escalate. For example, if an agent suddenly starts downloading hundreds of customer records at night, automated alerts should flag the behavior for investigation.
Regular Security Audits and Compliance Checks
Security isn’t a one-time fix. You must conduct regular audits to keep customer data safe—especially when outsourcing is part of your CX strategy.
Regulations like the GDPR (General Data Protection Regulation), HIPAA, and CCPA make it clear that even if a third-party vendor causes the breach, the legal liability still rests with the data controller—usually your company, not the outsourcer.
Under GDPR, your organization could face fines of up to €20 million or 4% of annual global revenue (whichever is higher) for severe violations. The penalty can be up to 2% of turnover even for less serious issues.
If your outsourcing partner mishandles data, your company is still financially, legally, and reputationally responsible.
Under GDPR, the data controller (the organization that determines how and why data is processed) remains responsible for protecting personal data, even when processing is carried out by a data processor (like an outsourced contact center).
This is why regular audits, compliance checks, and clearly defined contracts (with data protection clauses) are essential when engaging an outsourcing partner.
A comprehensive audit might uncover:
- Outdated security protocols.
- Overextended access permissions.
- Lack of documented compliance procedures.
Being proactive here protects your business not only from hackers but also from regulators.
Employee Training
The best security system in the world cannot protect customer data if the people using it aren’t knowledgeable about it.
Human error is one of the biggest causes of data breaches. SHRM (Society for Human Resource Management) reports that 52% of data breaches occur due to human error.
Agents need to understand phishing scams and social engineering tactics. After all, what’s the point of encryption if an employee hands over login credentials to a scammer pretending to be IT support?
Regular training sessions can prevent these lapses. Many companies, in fact, run phishing simulations, where employees receive fake scam emails to test their ability to fall for them.
Those who take the bait get immediate training on spotting red flags. Other businesses enforce zero-trust policies, where employees must verify requests before sharing data.
Secure Data Transfer Protocols
A protective layer is needed to keep cybercriminals out whenever data moves between agents and servers. Secure File Transfer Protocol (SFTP) and Virtual Private Networks (VPNs) keep data encrypted while in transit.
SFTP, for instance, encrypts files before sending them. Consider a call center that wants to send thousands of customer records to a client. If done over unsecured channels, hackers could extract the data unnoticed. However, with SFTP, that risk is eliminated.
Meanwhile, VPNs create encrypted tunnels for real-time data exchange. This ensures that agents working remotely or in different locations access systems securely.
HOW TO BUILD CUSTOMER TRUST THROUGH SECURE OUTSOURCING
When customers share their personal information, they’re making a leap of faith, believing their details won’t end up in the wrong hands. One security lapse, and that trust shatters.
Here’s how you can reassure customers that their data is safe even when handled by a third-party provider.
- Be transparent about your data-handling policies. Customers want to know how their data is managed, and telling them “it’s secure” is not enough. You must clearly outline the security protocols you implement, such as encryption and access controls. A company that states, “We use end-to-end encryption and real-time monitoring to protect your information,” builds far more trust than a vague assurance like, “Your data is safe with us.”
- Ensure clear customer communication. Customers shouldn’t have to dig through the fine print to understand how their data is protected. Ensure you provide them with regular updates on your security policies and easy-to-read privacy statements. Likewise, if you use AI-driven fraud detection, letting customers know reinforces their confidence.
- Implement a data breach response plan. Consider implementing real-time monitoring systems that flag unusual activity. Secondly, you must instantly cut off compromised access points when a breach is detected. Remember, the longer you take to acknowledge a breach, the worse the fallout. Besides, in case of an incident, be transparent with your customer. A breach can become a PR disaster when customers find out from the news instead of the company. See how Shopify quickly reported the incident of two rogue employees causing a data breach. The company was quick to terminate them.
- Use advanced technology. AI-driven threat detection identifies suspicious activity, while biometric authentication ensures that only authorized individuals can access sensitive data. Further, you can use blockchain technology to tamper-proof systems when storing sensitive records.
CONCLUSION
Trust is fragile. One poorly handled data breach can vanish years of credibility overnight. Customers want to know their data isn’t floating around on some dark web marketplace.
That’s why secure call center outsourcing is essential. A well-guarded database is worth more than the best marketing campaign because nothing sells like trust.
Companies prioritizing encryption and strict access controls prove to customers that their data is as protected as their trust deserves.
If you’re serious about your security, NAOS Solutions delivers outsourced call center services that put data protection first. Trust is at the core of a great business. Let’s work together to earn it.
