As businesses continue to move online, effective data management is becoming the foundation for their success. An integral part of ensuring an organization runs efficiently involves gathering data that can be processed, analyzed, and stored to gain a greater insight into the business and its customers. With the increased reliance on this data, the need to understand the concepts of data privacy and security has also taken center stage, as safeguarding sensitive information has become more critical.
However, both terms are often misused interchangeably, leading to confusion about their distinct meanings and importance, giving rise to an ongoing debate: Data Privacy vs. Data Security. This article aims to provide you with valuable insights into the ever-evolving relationship between data privacy and data security.
In this Guide:
What is Data Privacy?
Data privacy refers to the proper use, handling, and processing of personal data – in other words, its governance. It enables individuals to determine and limit access to the use and sharing of their personal and private data. Data privacy is primarily governed by legal and ethical considerations, but this varies by state or country in terms of how strict they are and how they are enforced. The General Data Protection Regulation (GDPR) of the European Union is the harshest rule to date, and other countries have modeled their privacy laws after it. Among these are the Lei Geral de Protecao de Dados (LGPD) in Brazil, the California Consumer Privacy Act (CCPA), and Canada’s planned Digital Charter Implementation Act.What are the principles of data privacy?
There are seven principles that serve as the foundation of data privacy in a digital-first community. At their core, they emphasize that personal data collection must be transparent, consensual, and intentional.
Data minimization: Only the data that is necessary for its stated purpose should be collected, to reduce the risk associated with data breaches. Essentially, companies can not collect and hoard data ‘just because’. For example, if an organization may ask for your contact details such as your email and phone number to help qualify you as a potential lead for their project, but asking for more invasive details like your home address is a clear violation of privacy. If companies keep minimal personal data records, if a cybercriminal does gain access, they can only steal minimal personal data.
Transparency: Businesses should be clear about their data handling practices, this includes disclosing what data is collected, why they want your data and how they intend to use it. Furthermore, they cannot use the data they collected against you. For example, tracking your internet usage without permission, and then leveraging that data to show targeted advertisements.
Purpose Limitation: Data should be collected only for specific, legitimate purposes, and not used for other reasons, without explicitly stating so. Companies are required to apply your data how they stated they would. For example, private data can’t be collected for research purposes and then given to the marketing team for outreach. This rule helps to guarantee that businesses cannot use our data in any way that goes beyond the parameters of that agreement and that our privacy is protected.
Integrity and Confidentiality: Personal data should be processed in a manner that ensures the confidentiality and integrity of the data is protected against unauthorized access or use. The protection model should work in two areas – security and redundancy. Companies need to implement systems to ensure the cybersecurity of their data- cybercriminals should not be able to access users’ private data. Businesses should also have backups ready in case one of their storage systems is compromised.
Storage Limitation: The data collected should only be stored as long as needed, and then either deleted or anonymized once it has served its intended purpose. Furthermore, personal data should only be kept in a manner that permits the identification of data subjects for as long as is necessary for the purposes for which the personal data was processed. To ensure that the personal data are not kept longer than needed, time limits should be established for erasure or a periodic review.
Accuracy: Accurate data should be collected, and where necessary kept up to date. Every reasonable step should be taken to ensure that if the personal data is inaccurate should be erased or rectified immediately.
Accountability: Organizations should be accountable for the data they collect, maintain, and process, and should implement robust measures to protect it.
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Data Privacy Laws and Legal Frameworks
In information technology (IT), a part of data privacy refers to the capability of a person or organization to choose whether information stored in a computer system can be shared with third parties. Many countries handle data privacy regulation from a sectoral perspective. This implies that each data privacy law or compliance rule was developed in response to the demands of a certain demographic group or nation.
Examples of this being implemented include:
General Data Protection Regulation (GDPR) – A privacy regulation from the EU that outlines the rights of people in the region regarding their personal information collected by businesses and provides rules for the business to adhere to to process people’s data legally.
Lei Geral de Protecao de Dados (LGPD) – Taking inspiration from GDPR, this is a Brazilian data protection law that creates data protection requirements of organizations that process personal data.
California Consumer Privacy Act (CCPA) – The CCPA is a law that allows Californian consumers to see all the information a company is collected and stored on them, as well as a complete list of third parties that the data was shared with. Consumers are also allowed to sue companies if the privacy guidelines are violated.
Children’s Online Privacy Protection Act (COPPA) – A federal law that gives parents with children under the age of 13, to control what information is collected from their children.
Health Insurance Portability and Accountability Act (HIPAA) – A law in the United States that focuses on healthcare-related matters, particularly the privacy and security of individuals’ medical information
What is Data Security?
According to IMB, data security can be defined as “The practice of protecting digital information from unauthorized access, corruption, or theft throughout its entire lifecycle.” When proper data security strategies are implemented, they can mitigate cyberthreats and misuse, as well as insider threats and human error which are the leading causes of data breaches today. Data security ensures the integrity of the data, meaning data is accurate, reliable, and available to authorized parties.
What are the principles of Data Security?
Data Availability: Ensuring systems and personnel can access the required data as needed
Data Integrity: Data integrity ensures that data remains accurate, consistent, and unaltered during storage, processing, or transmission.
Data Confidentiality: Confidentiality is the cornerstone of data security. It ensures that data is only accessible to authorized individuals or systems.
Data Lifecycle Management: The process of automating the transmission of critical data to offline and online storage.
Data Information Lifecycle Management: The process of evaluating, cataloging, and protecting information assets from various sources.
Data Security vs Data Privacy
It should be now clear that even though the two concepts are similar, they are not the same thing. Data privacy is concerned with the proper use, collection, storage, and deletion of data, while data security encompasses policies, technologies, methods and other measures to protect personal data. Data security also protects data from malicious threats while data privacy addresses responsible governance or use of that data.
The difference can be demonstrated in the example below.
A sample educational website collects information of their online students such as email addresses and login credentials, credit or debit card information and billing addresses.
To ensure proper personal data handling, the sample website should allow customers to unsubscribe from its email marketing or newsletter list, store users purchase information in appropriate storage guidelines and do not disclose users email addresses and purchasing data without getting their consent, which maintains the privacy of users’ data.
In that same breath, to remain aligned with data security policies, the sample website should employ the principle of least privilege to ensure that staff does not have unnecessary access to users’ information which would weaken the company’s overall data security.
By reducing the number of staff members who could access the purchasing data, the website significantly strengthens data security.
Tools for Data Privacy
Virtual Private Network
A VPN is an internet security tool that allows users to access the internet through a private network connection. They use encryption to ensure a private connection over the unsecured internet infrastructure. As a result, it is much harder for third parties to intercept or monitor your online activities.
Data encryption at rest and in use
Data at rest is data stored in a specific location that isn’t actively being transferred, e.g. files on a USB or hard drive. In contrast, data in use is data actively being viewed, modified or processed by a person or program. If both data at rest or in use is left in an encrypted form, it can be vulnerable to theft, cyber-attacks, unauthorized access and ransomware, among other attacks.
Password Managers
Having a unique and strong password for each account is an essential step for securing your data. However, password fatigue is often experienced by users, and keeping track of all those passwords can be challenging. This is where password managers come in. They securely store your passwords in an encrypted database, you you only need to remember the password for the password manager to have access to all the others.
Ad blocker
In addition to being intrusive, online advertisements can potentially compromise your data privacy by monitoring and tracking your online activities. Thankfully, there are measures you can take to prevent third-party trackers from gathering your personal information, and one effective solution is using an ad blocker. AdBlock Plus operates by blocking or filtering out unwanted ads, which not only enhances your browsing experience by eliminating annoying pop-ups and banners but also helps protect your privacy by limiting the exposure of your online behaviour to advertisers and data collectors.
Windows Data Collection Blocker
Both Windows 10 and 11 have built-in settings that enable Microsoft to gather and share data related to your device usage. This data includes location, app usage, and search history. This feature compromises your data privacy and it is recommended that it be disabled or limited, to grant you more control over your sensitive data and help to ensure it remains secure and protected in alignment with your privacy preferences.
Tools for Data Security
Firewalls
A firewall serves as a vital barrier in network securing, by controlling the inward and outward flow of traffic between different networks. Their primary function is to prevent unauthorized access and data breaches by filtering incoming and outgoing network packets.
Depending on the security policy established by an organization, firewalls can be configured to take various approaches. They may be set to either entirely disallow certain types of network traffic or subject-specific traffic to rigorous scrutiny and verification before permitting it to pass through.
Furthermore, firewalls offer the flexibility to selectively open specific communication ports, significantly limiting the avenues through which hackers can infiltrate a network or exfiltrate sensitive data. The strategic deployment of firewalls is fundamental to safeguarding an organization’s sensitive data and maintaining the integrity of its network security.
DLP Systems
Data Loss Prevention (DLP) systems play a pivotal role in safeguarding sensitive data across workstations, servers, and networks. Their main task is preventing the malicious deletion, removal or movement of confidential information.
Achieving this goal relies on establishing predefined rules and policies, which DLP systems use to constantly monitor digital environments for any signs of suspicious or unauthorized activities.
When such activities are detected, DLP systems respond with appropriate actions to mitigate potential data security risks by blocking the action, suspending the account and notifying the security administrator.
Antivirus Software
Antivirus software and tools are some of the most universally embraced security tools, being useful for both personal and commercial use. It is useful for detecting and removing a wide range of digital threats, including trojans, rootkits, and viruses, which all can compromise, alter, or harm sensitive data. Leveraging a combination of signature-based and heuristic-based approaches in virus detection, antivirus solutions help safeguard systems from a constantly evolving landscape of cyber threats.
Security Information and Event Management (SIEM) Solutions
Security Information and Event Management (SIEM) solutions play a pivotal role in modern data security strategies by offering real-time analysis of security logs generated by a multitude of sources, including network devices, servers, and software applications. These SIEM systems act as centralized hubs that collect, consolidate, and process vast amounts of security-related data, aiming to provide actionable insights into potential threats and security incidents.
By centralizing security data, and issuing alerts based on established rules, SIEM systems empower organizations to respond swiftly to security incidents, helping protect sensitive data and maintain the integrity of their digital assets.
Cloud Storage Security Solutions
Many organizations are now shifting from on-premises data storage options like NAS and SAN to cloud storage for their scalability benefits. However, while cloud storage providers handle the intricacies of infrastructure management, the responsibility for safeguarding the security of your data ultimately rests with your organization.
Ensuring data security in the cloud requires specific considerations, mainly focusing on implementing robust encryption services and establishing reliable backup and recovery controls. To assist with cloud data security, businesses can purchase Security as a Service solutions, that offer authentication, antivirus, antimalware, and intrusion detection and prevention services.
This ensures the protection of cloud-stored data and safeguards against unauthorized access, and malware threats and bolsters your overall data security posture in the cloud environment.
Data Security and Privacy Best Practices
- Store only essential information
- Do not store data longer than necessary
- Regularly take stock of the data you have stored in inventory
- Be open and honest with your users about why the data is benignly collected.
- Employ the use of encryption to convert data into a code that can only be understood by authorized parties. This technology can aid in preventing data theft and illegal access, making it a crucial part of data protection.
- Engage in data loss prevention, a set of strategies and programs designed to guard against the loss, theft, or unintentional deletion of data.
- Use firewalls to protect data by acting as a barrier between your internal systems and the public network. Firewalls may be used to restrict access to data and to prevent unauthorized users from transferring it.
- Use End-to-End encryption to ensure that data remains protected from the moment it is sent until it reaches its destination.
- Anti-virus and Anti-malware software is another crucial component of endpoint protection, as it is designed to detect and remove malicious software from your devices.
- Use authentication and authorization controls to help you validate user identification and ensure that user rights are applied properly.
- Destroy your data when it is outdated or no longer needed to lower liability.
- Conduct regular risk assessments to identify potential weaknesses before cybercriminals can take advantage, and to have proper risk management plans and procedures should a worst-case scenario occur.
- Implement multi-factor authentication to secure login sites.
- Ensure to use different passwords for different websites and apps, where each password is complex.
Consequences of neglecting data privacy and security measures
Taking shortcuts and implementing poor procedures to manage data privacy and data security increases the organization’s exposure to risks.
These include:
- Identity Theft
- Data Breach
- Damage to Reputation
- Legal action
Identity Theft
Depending on the kind of data stolen – social security numbers, login credentials or credit card information because of poor security measures, those affected face the chances of having the information used by cybercriminals to steal their identities and commit online fraud.
Data Breach
A data breach is a security incident when an authorized individual gains access to data without the owner’s consent. Poor security measures can lead to this as simply as a member of staff losing a laptop, and no hard drive encryption or password being implemented.
Damage TO Reputation
The company falling victim to a single security incident can destroy years of accumulated trust. If consumers deem the company as unreliable and irresponsible with security and privacy practices, it isn’t easy to re-earn their confidence, tarnishing the overall brand image.
Legal Action
Depending on the type of data stolen and the quantity, consumers, customers, partners, and service providers can take legal action to seek justice and protection. Furthermore, compromising an organization’s security could lead to steep financial costs.
For example, if credit card data is stolen, financial institutions may end up re-issuing new cards to their customers, incurring associated costs.
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Trends in Data Privacy and Data Security
Businesses, users and analysts must pay attention to trends in privacy and security as privacy laws worldwide continue to grow to protect user’s data and comply with privacy regulations. It is thus important that they stay aware and constantly vigilant for changes in the cybersecurity landscape as cybercrime rises and hackers develop more complex tactics to undermine security and privacy measures implemented.
As consumer awareness of how their data is used increases, consumers’ faith in firms is impacted, as does corporate profitability. Here are some industry trends to follow in the year ahead:
Greater transparency in the collection and processing of user’s data
As users become more aware of the value of their data, they want to ensure that it is secured properly, going as far as changing service providers because of their data policies or sharing practices. Organizations that are clear about why the data is being collected and how it will be handled will thus see an increase in their active users and profits compared to their competitors.
Increase in regulations
Governing bodies around the world are becoming aware of the need for national rules and regulations to protect their citizens’ data. The introduction of GDRP in the EU in 2018 was the catalyst for the growth of data privacy regulations in different countries.
Currently, over 100 countries have established their privacy protection laws and this number grows each year. Once implemented, companies must implement stricter data privacy policies and procedures not to breach the regulations and better protect the private information of their customers.
Companies will invest in more privacy technologies
This could mean purchasing tools from vendors or using in-house software. As companies strive to stay compliant with national regulations, they will continue to invest in more privacy technologies and teams to gain users’ trust and avoid exorbitant fines. Furthermore, employing developers and ensuring they create products and services with built in data protection and privacy ingrained into them.
Cookies will become obsolete
With the increase in users’ awareness of their private data, they are less willing to agree to the use of cookies from third-party services. Google is currently set to phase out third-party cookies in Chrome by 2024, which digital marketers have relied on to serve users with personalized ads. The goal is to shift to consent-based data-collecting solutions.
In addition, some companies are working on new technology to use a browser fingerprint which are unique identifiers that can be used to track a user without the use of cookies.
Final Thoughts
While the terms data privacy and data security are often used interchangeably, they have distinct meanings and principles, that when poorly understood and implemented can lead to detrimental consequences to your organization and individuals.
Data privacy is concerned with the responsible and ethical handling of personal data, while security focuses on protecting data from unauthorized access, corruption and theft. It involves ensuring data availability, integrity and confidentiality. Though they focus on two different areas, they complement each other and properly intertwining them can help safeguard your private data.
Ultimately by adhering to best practices, complying with relevant legal frameworks, and fostering a culture of responsible data management, businesses can not only protect their valuable assets but also build trust and credibility with their stakeholders. The careful balance of data privacy and data security is essential for the long-term success and sustainability of any organization in today’s data-driven world.
At Oppos Cybersecurity Assessments and Consultants, we specialize in comprehensive data security and data privacy assessments tailored to meet your unique needs. Our experienced team of security analysts is dedicated to helping you navigate the complex landscape of regulations and threats, ensuring your data remains secure and your data privacy practices comply with the latest laws. It is vital that you take proactive steps before a data breach or compliance issue occurs.
Reach out to us today to learn how we can assist you in fortifying your data security and privacy measures. Your data’s safety and your peace of mind are our top priorities. Contact us to schedule a consultation and take the first step toward a more secure and privacy-conscious future for your organization.
Secure your data with Oppos' Cybersecurity Compliance Services
Data Privacy vs Data Security
Both data privacy and security are paramount and intertwined. While privacy concerns the right and expectation to have personal data kept confidential, security is about protecting that data from breaches and unauthorized access. Without robust security, privacy can’t be assured, and without valuing privacy, security measures might not be implemented.
Ensuring data privacy and security involves implementing strong encryption methods, regularly updating software to patch vulnerabilities, employing robust authentication and authorization practices, and raising awareness through training. Additionally, compliance with data protection regulations and periodic audits also play a vital role in safeguarding data.
The three significant threats to security and privacy include cyber-attacks (like phishing and ransomware), weak passwords leading to unauthorized access, and unintentional insider threats (employees unknowingly compromising data). Constant vigilance, user education, and robust security infrastructure can mitigate these threats.
Privacy has profound implications on personal autonomy, freedom, and trust. A strong privacy framework boosts consumer trust in businesses, ensuring they feel safe sharing personal data. However, if violated, it can lead to reputational damage for companies, legal consequences, and a loss of individual dignity and freedom.
Risks associated with data and personal information include identity theft, financial fraud, blackmail, and unauthorized disclosure or sale of information. When personal data is mishandled, it can lead to reputational harm for entities and potentially devastating personal and financial consequences for individuals.
