Think of personally identifiable information (PII) as the internet breadcrumbs that lead straight to you. It’s any data that can be traced back to an individual, including your full name, social security number, email address, or even IP address. Companies collect this data to personalize experiences, enhance services, and – when executed right – enhance data security.
But the catch is this: once PII falls into the wrong hands, it can be used to commit identity theft, fraud, and invasion of privacy. That’s why it must be protected.
Why PII is a big deal
- A staggering 2.6 billion individual records were exposed through data breaches in 2023 alone.
- 68% of clients say they would stop working with a firm if it would not safeguard their data.
- Compliance like GDPR and CCPA are also making regulations tighter, where failing to comply costs as much as €20 million or 4% of an organization’s total revenue worldwide (whichever is greater).
- Hackers can sell stolen PII on the dark web for as little as $1, depending on the kind of information.
Protecting user’s data
Data privacy isn’t a legal issue – data privacy is an issue of customer trust. If you don’t protect your users’ data, they’ll leave.
Schneier hits the bullseye: your data security strategy isn’t just about checking compliance boxes – it’s your reputation insurance policy. Your reputation is your most valuable currency. One data fumble and watch how quickly your hard-won customers sprint toward competitors who take their information seriously. Consumers vote with their data trust first, and their wallet second – meaning your security approach isn’t just an IT concern, it’s a business survival strategy that directly impacts your bottom line.
Polar opposite situations
Apple has turned into a privacy-first organization. With technologies like App Tracking Transparency (ATT), they’ve given users the power to choose who can track their information. The result? 96% of iOS users opted out of third-party tracking when ATT was introduced.
Conversely, Facebook’s failure to protect user data led to the infamous Cambridge Analytica scandal, where PII was used without consent to influence political elections. The consequence? A $5 billion FTC penalty and a significant dent in public trust.
Preventing risk
Challenge: Synchronizing personalization and privacy. Consumers want personalized experiences but don’t want to feel like they’re being stalked online. It puts companies in a dilemma.
Resolution: Transparent data practices:
- Ask permission: No covert data collection.
- Receive explicit opt-in consent.
- Reduce data gathering: Gather only what’s required.
- Encrypt and anonymize: If information is breached, ensure that it’s of no use to hackers.
Bulletproof PII compliance
- Use end-to-end encryption for any sensitive data.
- Limit data storage – don’t keep what you don’t have to.
- Conduct regular security scans and penetration testing.
- Educate staff on best practices for data privacy.
