Data trafficking for identity theft is rife. Approximately 82% of the web contains some form of third-party scripts, with over half tracking users. 2020 saw the sharpest rise in data theft for malicious use. Over 500,000 reported identity theft cases through digital channels in the United States. These thefts are often used to perform bank and credit card fraud, government and document fraud, and loan or lease fraud.
The average cost to a business through data breaches and privacy compromises has risen to an average of $1.59 million - with the average cost life cycle reaching an eye-watering $4.87 million over 200 days.
By association, data security begets data privacy. Here are the key differences and how they impact your business.
What is data security, and what should you be concerned with?
As the world becomes increasingly digitized, data security has become a top priority for businesses of all sizes. A data breach can have devastating consequences, including financial loss, damage to reputation, and loss of customer trust.
The average lost business opportunities sat at an estimated $1.59 million in 2021. 71% of data breaches were financially motivated.
Data security is the practice of protecting data from unauthorized access, use, or disclosure. Here are some industry-standard ways of implementing data security.
Cloud data security
Cloud data security is protecting electronic data stored on a remote server. This is important because data in the cloud is often more vulnerable to attack than data on a local server. It's reported that organizations with more than 60% of their employees working remotely are more vulnerable and have higher reported data breaches. Managing data has become more chaotic with the increase in cloud data, making it hard to follow and protect managed, unmanaged, and shadow data. Sensitive data exists within cloud data stores, so it is imperative to be able to follow actual and potential data flows to protect the data.
Data encryption
Cloud data encryption involves encrypting data before it is sent to the cloud and decrypting it after receiving it. This is important because it helps to protect the data from being intercepted and read by unauthorized individuals. Based on research, only 5% of a company's folders are appropriately protected against unauthorized access.
Key management
61% of all breaches involve credentials being exposed. Key management is the process of generating, distributing, storing, and using cryptographic keys. It is a critical part of cryptographic operations, as the security of cryptographic keys directly impacts the security of the data they protect.
What is data privacy, and what should you be concerned with?
Data privacy is the protection of personal data from unauthorized access or use. It is a broad term that covers a wide range of data, including but not limited to personally identifiable information (PII), health, financial, educational, and genetic information.
This is where data privacy laws step in.
GDPR and other data regulations
The General Data Protection Regulation (GDPR) is a new EU data protection law enacted on May 25, 2018. The GDPR replaces the 1995 EU Data Protection Directive. It strengthens EU data protection rules by giving individuals more control over their personal data and establishing new rights for individuals.
GDPR applies to any company that processes the personal data of EU citizens, regardless of where the company is located. Companies that process the personal data of EU citizens must comply with the GDPR unless they can demonstrate that they meet certain conditions.
In addition, GDPR requires companies to get explicit consent from individuals before collecting, using, or sharing their personal data. Companies must also provide individuals with clear and concise information about their rights under GDPR and ensure they can easily exercise their rights.
The GDPR is just one of several new data regulations introduced in the past few years. Others include the California Consumer Privacy Act (CCPA) and the UK’s General Data Protection Regulation (GDPR).
PCI compliance and tokenization
As the world increasingly moves towards a digital space, businesses must take extra care to protect their customers' information. One way to do this is through PCI compliance and tokenization.
PCI compliance is a set of standards businesses must adhere to, to ensure the safety of their customers' credit and debit card information.
Tokenization is one method of PCI compliance that can be used to protect this sensitive information.
Data tokenization covered approximately $1.9 billion worth of global financial-related data in 2020 and is projected to grow to $4.8 billion by 2025.
Data sovereignty as part of data privacy laws
Data sovereignty is the concept that data should be stored and managed within the borders of the country in which it was collected. This is especially relevant in today's digital age, where data is often stored in the cloud and managed by third-party service providers.
Data sovereignty laws vary from country to country, but they typically require that data be stored within the country's borders and subject to its laws and regulations. This can create challenges for companies that operate in multiple countries, as they must ensure that their data practices comply with all applicable laws. Through mapping and following data within your organization, you will have better visibility and protection across your data assets to prevent compliance violations.
