What is the maximum duration for storing sensitive customer data according to best practices?

The maximum duration for storing sensitive customer data according to best practices is determined by the principle of data minimization. This principle states that organizations should retain personal data only for as long as it is necessary to fulfill the specific purpose for which it was collected. This approach not only helps in complying with legal and regulatory requirements, such as data protection laws, but also minimizes the risk of data breaches and enhances customer trust.

Keeping data indefinitely or for prolonged periods can lead to unnecessary exposure to risks, such as unauthorized access, loss, or misuse. Additionally, retaining data longer than necessary may violate privacy regulations that mandate timely deletion of data once it is no longer needed.

Setting a duration such as three years does not align with the necessity-focused approach, as the period may not correspond to when the data is indeed required. Furthermore, relying solely on customer requests for deletion can lead to instances where data remains longer than necessary, increasing risks for both the organization and the customer.

Therefore, the guideline emphasizes retaining sensitive customer data only for the time required to accomplish its intended purpose, ensuring compliance and safeguarding customers' privacy.