Data Privacy Versus Data Security: A Closer Look

The importance of data privacy and data security has grown exponentially as organizations today collect and store more information than ever before. Having a robust data protection strategy is critical to safeguard confidential information and to ensure smooth functioning of your business.  But before we move on, let’s take a step back to understand the key concepts of data privacy and data security.

The terms, data privacy and data security, are often misunderstood and are being used interchangeably. However, they are two separate concepts! Data privacy focuses on how information is handled, stored and used, while data security is concerned with protecting your organization’s assets.

Understanding Data Privacy

Data privacy deals with the regulations and practices to ensure data is responsibly handled. It includes how information is collected, processed, stored and disseminated. Any organization that collects and stores data or does business across the globe should comply with several privacy regulations, such as General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), Health Insurance Portability and Accountability Act (HIPAA), Payment Card Industry Data Security Standard (PCI DSS), Children’s Online Privacy Protection Act (COPPA) and other privacy laws.

The aim of these regulations is to protect and enhance consumer and personal privacy. These rules give individuals the right to know what information is collected, why it’s collected and how it’s processed. As data privacy regulations are growing globally and becoming more complex, privacy requirements are also changing. Non-compliance to these laws could cost your business dearly. In 2019, Google was fined $57 million under the European Union’s GDPR law.

Importance of Data Privacy

Data privacy is an individual’s right to control who has access to personal information and how it should be used. This also protects personal information from being sold or redistributed to third parties. When organizations collect customers’ data, it is the organization’s responsibility to protect and preserve their clients’ sensitive information. Not having a privacy policy in place or failure to comply with privacy laws can lead to serious consequences, apart from legal actions and financial loss.

Understanding Data Security

Data security is the process of protecting information from unauthorized access, data corruption and data loss. A data security process includes various techniques, data management practices and technologies that act as defense mechanisms to protect data from internal and external threats.

Data security is concerned with what an organization does with the data collected, where and how the data is stored, and regulates who can access the information. A comprehensive data security strategy will help prevent data breaches, ensure business continuity and keep your company’s data safe from cyberthreats.

 

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2024