Personal data refers to any detail that can make out an individual, such as a name, email address, or browsing history. It’s what powers targeted adverts, customer care, and anti-fraud measures. Companies then have to be careful not to overstep what they do with personal information. Using it for better services vs invading the privacy of their consumers.
The alternative? Anonymized data is where individually identifiable information is stripped away so that user anonymity is preserved and companies still get insights.
Revelating stats
- 67% of consumers would share personal information to enhance their service, but 87% want more control over how their information is handled.
- Over 2.6 billion records were exposed in data breaches alone in the first half of 2023.
- The global data privacy market is anticipated to reach $17.75 billion by 2028.
- GDPR fines increased by 168% during 2023, showing intensified regulation of personal data legislation.
Protecting yourself
It’s not okay to garner and misuse personally identifiable information (PIA) unless you have explicit consent from the consumer. This is why legislation like the GDPR and CCPA has been set in place.
Companies that play fast and loose with personal data don’t just risk lawsuits; they lose customers for good. On the flip side, businesses that respect privacy don’t just stay out of legal trouble – they build loyal users who stick around.
Data breach consequences
In 2021, LinkedIn suffered one of the biggest personal data breaches in history when a hacker scraped data from 700 million users – more than 90% of LinkedIn’s user base. The compromised data included full names, phone numbers, email addresses, professional backgrounds, and geolocation. Although LinkedIn claimed no sensitive financial information was stolen, the exposed data can still be used for identity theft, phishing attacks, and social engineering scams.
The data was scraped lawfully, i.e., the hacker made the best use of publicly available information and not by hacking into LinkedIn’s infrastructure. The data leak was auctioned on the dark web, putting millions of individuals at the mercy of scams and fraud. It caused debates regarding how tech companies handle publicly posted personal data and the need for more stringent privacy policies and user controls.
In another example, India’s largest biometric identification database, Aadhaar, was hacked several times in 2018 and 2019, exposing the personal information of more than 1.1 billion citizens. The database includes fingerprints, iris scans, addresses, and bank account data, creating a hackers’ paradise. Aadhaar data reportedly was available for as little as $8 through dark websites.
Don’t leave yourself vulnerable
Challenge: The largest problem companies have to deal with is data breaches. Cybercriminals are constantly discovering new methods of taking advantage of vulnerable security systems.
Resolution:
- Implement a zero-trust model; users and their devices should be authenticated.
- Secure sensitive data to prevent unauthorized access.
- Restrict the data you gather; if you don’t require it, don’t keep it.
Keeping your personal data safe
- Explain clearly how user data is gathered and utilized.
- Don’t store unnecessary data.
- Implement encryption, multi-factor authentication, and periodic audits.
- Follow regulations like GDPR, CCPA, and HIPAA.
- Give users data control with easy opt-out options.
