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insight story ai machine learning

Customer wins from AI require strategy, not just investment

  • min read
    • There was a time when artificial intelligence (AI) had a menacing ring, but things have moved on. Chat GPT and generative AI apps are creating new roles or making some skills and careers obsolete, depending on who you listen to. Meanwhile, we see its benefits every day, like finding efficiencies and automating repetitive tasks. AI could soon be essential to most businesses. But it's not always clear how to use it. Kaspersky's new podcast, Insight Story unpacks emerging tech trends with global specialists and businesses successfully using the tech. In Episode 5, I speak with AI expert Dr. Romesh Ranawana (Sri Lanka,) customer loyalty consultancy Truth CEO Amanda Cromhout (South Africa) and Fabio Assolini, Head of Research in Latin America for Kaspersky's Global Research and Analysis Team. We examine how business should approach AI and machine learning to make the most of the opportunity while staying secure. Understanding what's meant by AI Romesh says we normally mean something more specific when we talk about AI. "All technology – be it Alexa, your car or washing machine – uses algorithms. An algorithm outputs something when you input something. For problems too big or hard to solve with software, a particular type of AI – machine learning – offers a new way to build algorithms, instead of a programmer writing lines of code." And this kind of AI is everywhere. "We hear much about how it's changing e-commerce and video streaming, but nearly every industry uses AI – from healthcare to retail to factories. Many of the biggest brands, like Amazon and AirBnB, owe their success to it." AI in customer loyalty Customer loyalty programs have long used AI to target customers with more relevant, personalized offers. Amanda's company Truth specializes in these. "Data is fundamental to customer loyalty programs. Everything we know about a consumer – whether the information they give or gained through transactions – has proven power." UK grocery outlet Tesco's Clubcard was one of the first schemes of its kind, with some 20 million members today. Amanda says their approach to data was groundbreaking: "Every quarter, Tesco sent out thank you vouchers with a small discount on your next shop. The vouchers were relevant to what you bought, and no set was the same." "It's a value exchange," says Amanda. Customers give their data because of what they get out of it. "Sometimes companies ask members or customers for data less overtly. Financial institutions may offer a reward to answer a questionnaire, creating a profile of your financial needs and propensity to borrow. They're paying so they can get a higher response rate to sales. If done well, it's win-win." Recent research, Global Data Privacy: What the Consumer Really Thinks 2022, found discounts and freebies were in the top three reasons consumers share data with brands. Amanda also thinks some companies confuse using data well with hard-sell. "They're not thinking through the value proposition. The younger generation especially knows their data's worth. They're asking, 'What am I going to get for that?'" Keys to success with AI Most companies investing in AI aren't getting immediate results. MIT research found only three in 10 companies investing in AI are getting a return on their investment. Who succeeds depends on how they approach it, Romesh says. He thinks why you're doing it matters too – it should be about changing how the company does business, not simply making savings. "If you look at AI as a way to automate what you do now, you'll get reduced costs but not much benefit. You need to mesh AI and people in your organization to generate value, so they're learning from each other." Amanda adds, "Many companies want to flick a switch and, in two hours, make it happen. They don't understand it has to be a strategic driver for the business." Romesh and Amanda both highlight good-quality training data as a critical success factor. Romesh says, "Customers and their behaviors change – what you train today may not be relevant in a week's time. AI systems must be continuously trained on real-time, up-to-date data. Companies need data collected continuously kept in a single space – we call it 'the data lake.'" Amanda also believes the C-suite must support an AI strategy, even lead it. "It doesn't start with marketing executives wanting to do this – it starts at the top, with the CEO and the board." But they shouldn't expect too much, too soon. "The leaders of any company must understand it's an ultramarathon, not a sprint." Romesh notes it's becoming possible for more people to work with AI. "AI systems are still complicated. It takes knowledge, data engineering and software skill. Over the last few years, more tools have come out – low-code or no-code tools – making AI more accessible to more people." How AI is changing cybercrime AI didn't need to be more accessible for cybercriminals to use it, which has implications for business. In research with Kaspersky's Global Research and Analysis Team, Fabio Assolini has seen several applications of AI in cybercrime. "AI is helping cybercriminals bypass new authentication methods. Some financial institutions and banking apps use biometric authentication, where the user must look to the right, to the left and smile. We've seen cybercriminals using AI tools to do this with only a victim's photo." How businesses should respond isn't straightforward – they need to identify more fraudsters while not misidentifying too many customers. "You can fine-tune authentication methods to better identify fraud attempts, but you may get many false positives. It's a balance," says Fabio. Fabio recommends businesses ensure AI training data is ethically gathered and complies with privacy regulation in countries they distribute to. "Some free apps for adding special effects to pictures collect and sell data sets for training AI. There's a privacy issue, especially in Europe with GDPR, but sometimes those collecting the data are in parts of the world without privacy restrictions." To comply with GDPR, AI systems that use personal data must be developed, trained and deployed with a clear objective determined at the design stage. It must be legitimate and compatible with the organization's goals. AI's future in business Amanda stresses the need for brands to understand what their data really means about every human behind it. "Data scientist Dr. Shorful Islam says, at the end of every data point is a human being we're trying to persuade to do something differently, or trying to make their engagement with a brand more pleasurable, or whatever the desired outcome. So you've got to think about behavior more like human beings, rather than robots." Romesh sees AI leading to powerful change in consumer behavior. "We're buying things we'd never have bought before because companies are pushing them to us. Amazon reports 35 percent of its revenue comes from recommendations." And those features will only get cleverer. "Systems will become more powerful because they'll have more data feeding in." Listen to the full Insight Story audio series on Podbean or your usual podcast provider.
digital trust

Customers’ trust in tech is changing. What should business do?

  • min read
    • Of course, businesses need customer trust, but understanding what trust means in a digital world is becoming more important. Digital trust is users' confidence that tech, people and processes they engage with are secure and private. Recent research suggests how customers decide where to place their digital trust is changing, so some businesses are changing their approach. As Minter Dial wrote before in Secure Futures, the 2022 Edelman Trust Barometer report shows eroding trust in institutions while remarkably, our trust in business remains. Now, there's an opportunity for business to use integrity, empathy, and privacy and ethics around new tech like artificial intelligence (AI) and customer relationships management (CRM,) to lead the way. Kaspersky's new podcast, Insight Story, unpacks emerging tech trends with global specialists and businesses successfully using new tech. In Episode 4, I discuss what digital trust means and how organizations can grow it with Müge Fazlioglu (US,) Principal Researcher, International Association of Privacy Professionals (IAPP), Malek Ben Salem (US,) emerging tech security expert and Fabio Assolini, Head of Research in Latin America for Kaspersky's Global Research and Analysis Team. Unpacking digital trust Digital trust covers much ground, Malek Ben Salem says. "It's about data integrity, technology, people and processes. It's our confidence that our privacy is protected and secured, the reliability of digital transactions and how sure we are of the identities of those we engage with. It's also about how much we trust the information we get as users." Müge Fazlioglu says trust is notoriously hard to pin down. "Our trust when we may or may not share data depends on many things, like our perception of the party we're sharing with, our data's value to them and us. We also weigh the data's sensitivity – what might happen if it were revealed." Trust can make or break a purchase IAPP's March 2023 Privacy and Consumer Trust Report shows privacy concerns influence consumer purchasing decisions. Müge says, "Many people take steps to protect their privacy, like deleting an app or withholding some personal information." So paying more attention to trust could pay dividends. "Organizations gain credibility by taking steps to enhance privacy and data protection. We're now seeing some big brands featuring privacy-related messaging in their advertising and marketing of web browsers and smart home devices," recounts Müge. Trust concerns also make brands hit the headlines for the wrong reasons. Amazon's recent purchase of robot vacuum cleaner brand iRobot triggered privacy objections from consumer and civil rights groups, then an EU investigation. How companies help (and harm) trust Tech research consultancy McKinsey's 2022 Digital Trust report said while 70 percent of people trust companies to protect their privacy, most companies aren't living up to the expectation. So what should companies do? Müge says much best practice is around transparency. "Few consumers have a good grasp of how companies use their information – what they collect, and if they follow good practice. So companies need to ensure they write a simple, clear privacy policy and have an easy-to-use page for people to manage their privacy settings." Regulators also think easy-to-adjust privacy settings matter. The US Federal Trade Commission (FTC) recently fined the company that makes the game Fortnite for its hard-to-use privacy settings. Müge thinks regulators, businesses and consumers can all play a role in improving communication around privacy. "How a company communicates its data practices affects trust – the duty should not be on customers to make daily decisions based on lengthy and complicated legal agreements. Regulators have an important role in raising awareness and providing education. Some, like the FTC and European Union data protection authorities, are starting to do that." Müge also recommends being prepared for how you'll handle a data leak. "Responding slowly means more consumer loyalty lost. Have an incident response plan for the inevitable." Data leaks are common but often have a big impact on business. Kaspersky's 2022 IT Security Economics report found that among 3,230 businesses surveyed, data leaks were the most commonly encountered security issue, with 55 percent considering them the most challenging incidents. Malek points to one business leading in digital trust. "Apple stands out in how it uses privacy-preserving technology to train artificial intelligence (AI) on mobile phones. Devices keep data locally and use it to train user speech-recognition and auto-complete models. Then the models are used to update a central model that can be applied to many users. So the data is not shared or uploaded, but still used to improve the AI." Using cybersecurity to build trust 29 percent of businesses with 500 to 999 employees have experienced a cybersecurity incident, according to Kaspersky's 2022 Small-to-Medium Business Cyber Resilience report.  As your business scales into a larger enterprise, so does the likelihood of a cyberattack or data leak. Malek thinks investing in cybersecurity is vital to protect customer trust. "To build secure infrastructure and allow for secure transactions, you need a cybersecurity strategy and proper governance, and you must hire the right talent. More importantly, be transparent." Or, as Müge says, "Shine a bright light on what you're doing." New technologies are evolving cybersecurity's contribution to digital trust. Malek sees many applications of AI in security tech: "It helps identify who is accessing a system by profiling user behavior. It can detect and respond to security incidents. It can classify unstructured data like business documents, so we don't need people to read them to know what's sensitive or confidential." A relatively new approach to security, zero trust, is influencing what we'll see next. "People will own their full identity and use pieces as needed. For instance, if I want to buy something that requires proof of age, I can share just my age without information the seller doesn't need, like full birth date. Zero-trust principles mean allowing access only to the information needed." But Kaspersky's Fabio Assolini says businesses may not be able to adopt these good practices overnight. "Many networks need adapting for zero-trust principles. It's a challenge for administrators, but it's important they understand how it works and prepare corporate networks for it." He also highlights the value of transparency, not just between businesses and customers, but between businesses and suppliers. "You must be able to trust your cybersecurity providers, especially as we're seeing many targeted attacks that abuse cybersecurity software or infrastructure. Security vendors could be more transparent about their technologies. At Kaspersky, we let customers review our code at transparency centers. We'd like to see other companies doing that." He adds, "Training is also important. Sometimes cybercriminals send a phishing attack to just one employee, so it matters that each employee is trained in identifying attack attempts." Asked for one key recommendation for business in building digital trust, Malek says, consider cybersecurity part of your environmental, social and governance (ESG) framework because "it elevates the discussion." Müge says, "Keep in mind all the smart technology you use. It uses many different kinds of information. Use the privacy features and regularly monitor data sharing." Listen to the full Insight Story audio series on Podbean or your usual podcast provider.
paper dead shredder

Is paper dead?

  • min read
    • For retailers, predicting customers' future wants and needs is crucial – especially in this era of disrupted supply chains. I hope you won't recognize this story as something that might happen in your business, but it demonstrates how soon retailers of all sizes could find themselves in a new future. I bought a blouse recently from a traveling vintage clothes seller. Picture several racks of bright retro outfits set up under a caravan awning with a changing room crafted from tie-dyed blankets. Incense hangs in the air, as does the ringing of tiny bells attached to the seller's impossibly long hair, jingling as she wanders around after customers, straightening coat hangers. To pay, I offer cash, but she instead presents me with a beautifully calligraphed sign showing her bank account details. Given the riskiness of this practice, I offer a moment of security education. She tells me she's in the habit of giving out her bank details because it means more sales, and keeping enough change around is hard when you're always on the road. Even those on the fringes are moving towards electronic payment for its convenience and customer preference, albeit sometimes not in ideal ways. When it comes to meeting customer expectations in how your transactions happen, are you ready for a future where paper money, receipts, plastic cards are a thing of the past? Could your retail business work in a world where all money is changing hands by smartphone? Among Kaspersky researchers' privacy prediction for 2023 is that we'll keep seeing smartphones and other smart devices encroaching on activities once dominated by paper and plastic cards. A future where all we'll need is a smartphone seems close when we're paying by near-field communication (NFC) like Apple or Samsung Pay or QR code like Swish, or using apps to show COVID-19 testing and vaccination status. What does this mean for paper and plastic transactions? And what privacy and security issues should business consider when it comes to doing it all by smartphone? Environmental reasons to stop using paper and plastic Some might say the sustainability drive to eliminate paper and plastic in business transactions is overplayed. While both have significant environmental impacts, business transactions are not a major source. Meanwhile, electronic transactions can be responsible for much energy use and the equipment used will ultimately become resource-heavy and hard-to-recycle ewaste. Gen Z, Millennials and those younger will do much to avoid adding more plastic and paper to the world. Regardless of environmental impact, consumer demand for more convenient paperless and cardless transactions will only grow. Processes likely to move to smartphone apps Digitized identity documents look set to be the next big frontier for smartphones. It's already been a common approach to declaring COVID-19 testing and vaccination status worldwide, but soon passports, driver licenses, student IDs and more will be made available through apps. Germany started using app-based ID cards in 2021. Around the same time, Apple announced several US states would make digital identity cards and driver licenses available using Apple Wallet. ID stored on phones brings convenience and risk. A well-implemented system would let stores verify customers' age without seeing personal details they don't need, like home address – also known as 'zero trust' security. Digitized IDs could also speed up know-your-customer (KYC) procedures when applying for a loan with a smartphone. But using a smartphone to store growing amounts of personal data introduces 'single point of failure' security risk. Those who develop and commission smartphone software like apps must ensure top-notch device security and privacy-preserving data storage. Cardless cash withdrawal at ATMs is taking off around the world, especially where bankcard fraud is more common, like India. Smartphone apps enable cardless withdrawals, for example, scanning a QR code on the ATM screen with a payment app like Google Pay, or using near-field communication (NFC.) Again, these transactions aren't without risk. Speaking to price-comparison service Bankrate, Ricardo Pina, founder of personal finance blog The Modest Wallet, said, "Since bank cards are being replaced by phones, criminals will now be more enticed to target and hack your phone to mine your data, information and even change your phone and bank app settings." When will paper and card transactions become history? Those who run businesses that experience higher overheads thanks to processing cash, cards and printed receipts may dare to dream of a world where these go the way of the 'check.' Ubiquitous throughout most of the 20th century, many banks have stopped issuing and accepting these. Check payment is expected to be extinct by 2026. Those old enough to remember when checks were commonplace might think they'd disappeared years ago. But sometimes these methods strongly persist in parts of an economy that need them for specific reasons. A few years ago, a friend and I hiked the five-day South West Coastal Path in Cornwall, UK – and yes, it was glorious. This part of the UK is far from any major city. We were surprised to notice most bed-and-breakfasts  accepted only cash or check. Once we understood the area's geography, we paid by check wherever we could. Traveling on foot and far from towns, it seemed unwise to part with cash we might need. These businesses told us they didn't take card payments because they only had customers in summer, making point-of-sale machines uneconomic. Similarly, can smartphones – and reliable access to affordable data to operate apps – be all things to all people in all places? While access to mobile technologies has certainly enabled greater economic participation from marginalized people, we can easily overestimate how many can and will use these technologies if we use them or see them used around us often. Pew Research estimates around 85 percent of the US population owns a smartphone, but in China and India, it's lower at 70 percent. While China leads the world in mobile payment adoption, smartphone ownership numbers don't tell us how many people could use their smartphone for payments – for example, successfully download and register to use payment apps, and access data when needed. Cash transactions still account for far more business than many people think – in 2021, customers used cash for over 20 percent of point-of-sale transactions globally, according to the International Currency Association. Many businesses wouldn't survive losing 20 percent of their sales. There is also the inevitable backlash against smartphones because of negative mental health impacts, seeing some choose to quit or radically reduce how much they use them. It seems paper- and card-based identity and payment options will be with us much longer than we think, if the lifecycle of check payment is anything to go by. For small business, alternative point-of-sale card payment providers are fast making accepting cards more affordable, making paying by card even more ubiquitous without reducing security. When it comes to taking payment, it 'pays' to be flexible and listen to what your customers want, rather than focusing on what suits your business. Meanwhile, keep an eye on evolving technology making retail transactions simpler and more affordable.
data ethics interview

How data ethicists are helping tech business be better

  • min read
    • Using data responsibly is a hot topic. Tech companies must ensure they don't cause harm, for example, by breaching consumer privacy or reinforcing bias through automated decisions. It's a moral and legal question, but it may be unclear how businesses and governments should approach their data responsibilities despite increased regulation. We still see egregious data use practice. Alice Thwaite is technology ethicist and responsible owner for ethics at OmniGOV, MG OMD, working with the UK government on communications and advertising. We chat about what data ethics means in practice. Gemma: What does it mean to be a data ethicist today? Alice: Ethics is the study of how to live. An ethicist takes a theory of how humans want to be treated and how we should interact with the wider world, and thinks about how an action or technology could contribute to that goal. We use ethical methodologies and knowledge about the consequences of a technology or business model to transform the business into one that prioritizes ethics. Businesses have always operated in the realm of ethics, but usually without a systematic approach. Ethicists co-create frameworks with stakeholders like customers, colleagues and wider society so that an organization's values become critical in business decisions. What does that look like in practice? First, we help organizations understand where they're making ethical decisions and show how they'll need a more systematic process to reach their ethical goals. Second, we educate organizations on ethical methodology and issues. Third, we assess practice to understand what the company wants to prioritize and how current practice meets ethical goals, making suggestions like 'ethical pilots.' Finally, we implement and measure ethical pilots so they can become policy. We don't work in a vacuum – we must be in constant contact with various communities. For example, before establishing diversity, equity and inclusion (DEI) initiatives, a company might think racial equality is important but have no roadmap to get there. With an influence campaign, education, auditing and an implementation program, they may still have a way to go. But they're now measuring ethnicity pay gap and thinking about inclusive work environments for different people. They can keep following the 'influence, educate, assess, implement' process to fruition. Where do organizations start? What tips do you have for those keen to start doing ethics? Hire someone to build an ethical program and link them with a sponsor who can ensure the organization implements their recommendations. They may have a degree in philosophy, international relations, social science or community work experience. Ensure they can learn as much as possible about business ethics and support their attempts to transform the culture. Those in data security or compliance should recognize an ethicist has different processes. The goals may be similar, but the process aligns more with social science and humanities methods. What questions should organizations wanting a data ethicist ask? Are we committed to change? Do we want a world prioritizing human values like democracy, dignity and freedom? Are we prepared for the discomfort that comes with changing procedures? If you're prepared to change, write a job description incorporating things I've mentioned and encourage your team members to apply. Opinions reflect those of the expert. Interview edited for clarity.
personalisation customer data

How to be clever – not creepy – with customer data

  • min read
    • Businesses are collecting ever-increasing customer data and marketers targeting consumers with more personalized ads. But when does hyper-targeted marketing cross the line from clever into creepy? In 2012, an angry customer approached a manager of a Target store in Minneapolis, US, demanding to know why his teenage daughter was receiving coupons for baby clothes and cribs. The manager, who had no idea why, apologized. Days later, the customer called to apologize, having found out his teenage daughter was, in fact, pregnant. Target's customer-tracking technology showed people ads based on what they bought. It had identified that purchasing vitamins, cotton balls and fragrance-free skincare products suggested future purchases of a crib and baby clothes, or in other words, that the customer was expecting a baby. Businesses can collect huge amounts of data about customers, and when combined with shopping or browsing patterns, it can tell marketers much about someone, sometimes more than we know ourselves. They can correlate data from different sources into a 'buyer persona' that may be surprisingly accurate. But ads based on this deep data collection and correlation can come across as creepy, leaving consumers wondering how brands know so much about them. Tracking people across the internet "Most websites and emails contain some form of tracking," Karen Gullo of EFF (Electronic Frontier Foundation) told me. "Cookies let advertisers follow your web searching. Tracking pixels in emails tell the sender if you opened the message. Tracking links let websites know what you clicked on. If you've ever filled out an online form, the data may have been collected even if you didn't submit the form." But with great data comes great responsibility. 'The more targeted the ad, the higher the response' has been a standard in advertising for decades. But as ads grow more focused, they begin to cross lines. Marketers must think about how their campaigns might come across to customers. What makes ads creepy? Research shows that personalization tends to increase response, but it can also have the opposite effect. When personalization and targeting are 'too much,' it puts people off by seeming intrusive. CEO of Email Optimization Shop Jeanne Jennings told me, "I got an email from a department store where I shop, with my first and maiden name in the subject line." She had not used her maiden name for 20 years and could not figure out how they knew it. She eventually worked out they got her maiden name through her social security card, which she had shared when setting up her debit card. While perceptions vary between customers and age groups, people tend to base judgments of creepiness on four things. 1.   Consent: Was the data collected voluntarily? Using data voluntarily provided by the customer means great targeting, but using third-party data or data obtained without consent can be an invasion of privacy. "You want the customer to be pleased the content is relevant. You don't want them to wonder how you got that information," said Jennings. 2.   Explainability: How does a brand know this about me? "Some of the best recommendations… suggest why you are seeing that recommendation," said Emad Hassan, former Head of Data Analytics at Facebook and Paypal, on CMSWire. Using targeted data in a way that makes it easy for the customer to know why you have the data reduces intrusiveness. For example, a donut shop might say, "From your purchase data, we know you're a huge fan of our donuts, so here's a special discount for being one of our top customers." 3.   Third-party data: When information given to one company shows up in an ad for another Using demographic or preference data from a third-party source to target consumers often comes across as intrusive. Someone buying books for a niece or nephew from a children's book shop may not appreciate a children's clothing brand urging them to get "their" children new clothes for school. There's presumptuousness alongside exchange of personal data between brands. "If you learned that a friend had revealed something about you to another friend, you'd probably be upset, even if you have no problem with both parties knowing the information," wrote Harvard Business Review. 4.   Security and privacy: Will this brand keep my data safe? Consumers want to know they can trust brands to store and process their data ethically and securely against hacks and breaches. Poor data storage or weak privacy policies can turn consumers off. Seeing personal information pop up in an ad or communication from another brand can be distressing and feels like a breach in trust between consumer and brand. The same principles that apply to social interactions apply here – don't use information gained without consent or from a third party, keep customers' data secure and avoid using sensitive information like sexual orientation, health information or financial status. "It's about privacy, safety, and security, and being able to control your data and internet experience," said Gullo. Future advertising: Hyper-targeted… or not targeted at all? Third-party cookies are put on a website by someone other than the website's owner and collect data for that external entity. Many search engines have already, or plan to, phase these out soon. The third-party cookie ban means marketers must rely more on data from their own company's customer interactions. This may mean more transparent, direct and explainable ads that improve trust between the consumer and the brand. Jennings thinks marketing's future should be more responsible and smarter personalization. "As the industry is more responsible with how they use data, personalization is going to stay around but be better," she said. Advertising must respond to evolving consumer attitudes to privacy, but data-based targeting is likely here to stay. How companies obtain and use data will change, focusing more on consent and privacy. Make sure your business gets ahead and leaves the (sometimes creepy) old ways behind forever.
data transparency center

How transparency centers and open data processing practices help your business

  • min read
    • Data processing centers are already a crucial part of digital business, and transparency centers – although less widespread – are becoming part of that picture too. But the two can be confused or poorly understood. Enterprises wanting to make sure they're protecting their security in the best way possible will want to get to the bottom of this. Here, we'll take an in-depth look at both, examining their different purposes and what your business should consider when using each as part of its security practice. What data processing centers do Data processing centers hold servers and computers that process your business's information. Increasingly, data processing centers are separate from the data-owning business's premises for safety, security and cost-effectiveness. According to Market Prospects Insights, "Data center operations include installing and maintaining network resources, ensuring data center security, and monitoring systems responsible for power and cooling." Speaking of power and cooling, more businesses are now thinking about the environmental impact of data processing. Thankfully, data processing needn't cost the earth. You can seek out data processing centers powered by renewable electricity, either in a country where grid power comes mostly from renewable energy, like Norway, Brazil or New Zealand. Or, process your data with a company that powers their data center by buying electricity only from renewable sources. Why data center location matters Regulation can also impact where businesses choose to process their data. You'll need to know how laws in the territory you and your customers are in could affect your data security. A third factor influencing where you process your data may be company values. At Kaspersky, we use two data centers in Zürich, Switzerland to store all threat-related data from our product users in Europe, North and Latin America, the Middle East and several Asia-Pacific countries. We chose Switzerland because of its long history of neutrality, as part of our Global Transparency Initiative (GTI.) What transparency centers do Wondering what next-level trust between businesses looks like? You may soon have the opportunity to examine your software supply chain in a new level of detail. Outside the open-source software movement, software source code is usually a closely guarded trade secret. But increasingly, front-runners realize that finding ways to safely and securely let partners and clients inspect their code helps build the trusting relationships businesses need to thrive. Communications giant Huawei established its first transparency center in Brussels in 2019. Huawei explains what they hope to achieve with their center: "Through the Cyber Security Transparency Centre, we plan to increase communication and collaboration with security professionals, governmental agencies, customers and other industry stakeholders, in order to develop a secure and trusted digital environment." Microsoft opened transparency centers in Brussels and Redmond, Washington in 2014 to 2015 as part of its Government Security Program (GSP.)  Matt Thomlinson, Vice President of Microsoft Security highlighted how transparency centers can contribute to better economic outcomes for all: "Only by increasing confidence in digital solutions […] can Europe ensure that every citizen, business and government feels the benefits of the digital revolution." Kaspersky started creating transparency centers in 2017 and now has seven, in Zürich (Switzerland,) Madrid (Spain,) São Paulo (Brazil,) Woburn (USA,) Tokyo (Japan,) Singapore and Kuala Lumpur (Malaysia.) We welcome customers and partners, including authorities responsible for cybersecurity, from anywhere in the world to visit these centers. How Kaspersky customers can use our transparency centers We suggest clients visit a transparency center if they want to know more about our data security, privacy and management practices, encryption methods or supply chain risk management. When customers visit our centers, we have experts on hand to give any technical information about our source code and technologies. We have three levels of access, like the beginner, intermediate and advanced slopes on a ski field – designed to allow a broader range of client visitors to get something out of the experience. They could rebuild our source code to ensure it matches publicly available modules, and read what independent auditors – including a Big Four accounting firm – have said about us in recent security reports. While few businesses have transparency centers today, others are adopting similar ideas. Showcase centers, for example, let customers try out the firm's latest tech and in some cases, securely review code. UK-based telecommunications multinational BT established a showcase center for its financial services products, where their customers learn more about their products – especially security features. Today, businesses must understand where and how their data is processed and ensure processing conforms with regulation and their organization's values. Find out what opportunities you have to better understand what's happening with your data. If you have an opportunity to visit a transparency center or other facility that lets you get up close and personal with the code of organizations in your supply chain, take up the offer – regardless of which ski slope you're on.
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About Secure Futures

Secure Futures magazine is your go-to business guide for opinions, trends and insight into the world of technology and cybersecurity. We help your business to bring on the future. Brought to you by Kaspersky, the global cybersecurity experts.

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