Data Privacy vs. Data Security (and Why the Difference Matters)

To combat the rising threat, organizations are working hard to both ensure the privacy of their customers and employees and bolster cybersecurity.

Data privacy and data security are two terms that get used frequently in an IT context, but they aren’t the same and getting them conflated can have consequences for security teams and businesses.

So, what are data privacy and data security, and what strategies can businesses use to protect them?

What are data privacy and data security?

Data privacy

Data privacy focuses on how entities store, collect and share information. Companies might collect demographics like age and occupation, or more critical data like social security and bank numbers. Customers and employees have developed complacency when sharing this information online, assuming businesses wouldn’t collect the data if they didn’t need it.

However, recent worldwide buzz reveals how companies have over-collected or obtained data and sold it without authorization for decades, leading to security gaps and malicious use. Citizens become more aware daily of how precious their data is to companies and want to take ownership of it again.

Data security

Data security describes how that data stays safe from unauthorized access. Protections involve cybersecurity analysts’ efforts to train employees about cybersecurity hygiene, update hardware and software, and perform remediation if a threat happens. They’re integral to data privacy because they assign permissions,  tokenize and encrypt private data to keep it safe.

Governments have focused on outlining cybersecurity benchmarks for a long time and the modern discourse surrounding data privacy is making governments catch up on how companies should process information. Most cybersecurity breaches occur due to human error, partly because of mishandling data privacy. Some could question the need for additional legislation — if the data stays secure, why does it need to be more private?

Data privacy and data security are related, but they’re not the same. Data privacy policies regulate what companies can do with data, while data security policies regulate how companies should protect that data. Both are important policies to implement, but understanding the difference is crucial.

Why data privacy and data security are important

Instilling data privacy practices boosts the effectiveness of data security. If data privacy methods manage storage and minimize collection, it reduces the vulnerable surface area for incoming threats. Companies should only collect the data they need, use it as soon as possible and then store it securely or dispose of it correctly, according to how it would affect others. Gathering useless personally identifying information and keeping it indefinitely for unknown purposes gives hackers more for their efforts while putting more individuals at risk.

Most companies invested in cybersecurity know it’s non-negotiable to have protection throughout an entire supply chain and with third parties. Collaborative data use doesn’t stay protected unless everyone using and sharing it has equally reinforced digital walls.

The same goes for data privacy. A company may have data privacy statutes in place, but their third-party partners or shareholders could not, rendering measures void. Businesses must consider how these two concepts interact internally and externally for cohesion and safety.

The most crucial reason companies must consider these concepts equally is to protect people — meaning companies and individuals. The consequences of misusing data and not keeping it safe are too great as hackers’ skills constantly scale to the level analysts fight back. On top of the average cost of a data breach hovering around $4.35 million in 2022, careless data practices could uproot livelihoods as hackers steal identities, pilfer money and spread misinformation.

While data privacy and security often rely upon each other, one blanket regulation is often not enough to cover both adequately. Considering the implications of both security and privacy in data regulation will give companies a more well-rounded that both holds the company accountable for data and protects it from external malicious actors.

How can your business improve security and privacy?

1. Limiting access

Limiting access is the most effective way to ensure data security and privacy. Implementing frameworks like least privilege and zero trust only permit as few parties as possible to access and use data. These structures support remediation efforts for analysts. It hastens recovery time and helps discover the point of entry for a breach. Giving many employees access to a database of information to avoid a one-time, slight inconvenience in the future isn’t worth the risk.

2. Reviewing data storage

companies should review data storage vigilantly, erasing and curating it with only relevant, current data. Despite the more-is-better approach businesses have monetized for years, it isn’t sustainable in the current market with how vulnerable it makes everyone.

3. Staying up to date with compliance laws

Enterprises can also stay up-to-date with the world’s legislation and compliance recommendations for privacy and security. Initiatives like the General Data Protection Regulation in the EU and the California Consumer Privacy Act are leading the way for widespread governmental oversight of data privacy. Additionally, companies can look to compliances like NIST, HIPAA, ISO, IEC and SOC-2 for comprehensive security strategies for accountability.

However, security and privacy efforts should always exceed compliance expectations, as industry innovation is what will secure data for the future. Obtaining digital resilience isn’t a one-time effort — it’s a constant evolution.

 4. Being transparent with customers

Communicating efforts to customers will increase brand loyalty and global trust in a progressively digital world. The more threats that surface make customers reluctant to commit to digital products if they feel their information isn’t safe. Now, there’s an expectation of transparency, and relaying privacy and security measures to customers will extend that accountability from companies. Nobody will hold a business to their word like customers on social media.

Know the distinctions between privacy and security

Companies must know the distinction between data privacy and data security for cybersecurity strategies that match the severity of threat actors. Embracing data privacy practices will only reinforce risk management and support business continuity plans. Additionally, it helps usher in a new age of data responsibility as data-heavy technologies like AI becomes more vital to societal operations. Proper knowledge instills accountability early on in new tech development, reshaping how businesses operate for the better to make it safer for employees and customers.