Logo

Data Security vs. Data Privacy

January 20, 2022

Data Security vs. Data Privacy

Data is rapidly becoming the lifeblood of companies, and it's essential to protect it. Data security and privacy are two critical considerations for any business that collects and handles significant amounts of data. Although the two terms can seem interchangeable, their focus is different.

Data security means protecting data from unauthorized access, theft, and corruption. Whereas data privacy refers to data being collected and processed in a way that protects individuals from harm or exposure.

The Importance of Data Security

Every business collects data, and it can be sensitive, such as personally identifiable information (PII), proprietary information, and financial records. If this information were to be stolen, it could lead to lawsuits, loss of a competitive advantage, and harm to the company's reputation.

According to a report by IBM, the average cost of a data breach in 2020 was $3.86 million, which speaks volumes about the importance of data security. Moreover, cybercriminals are increasingly targeting small- and medium-sized businesses, with 43% of attacks last year aimed at them.

Therefore, companies should prioritize data security to protect sensitive data from an attack in the first place.

The Importance of Data Privacy

Data privacy is also essential, especially in today's digital age, as individuals are increasingly concerned about what data companies are collecting, storing, and sharing about them.

It's essential to remember that data privacy laws exist to protect the individual's rights and freedoms - such as GDPR in the EU or CCPA in the US. These laws require companies to be transparent with how they collect and use individual's data, to obtain consent and protect the data.

The lack of privacy can sometimes result in citizens' personal data or preferences being used for political or commercial purposes without consent, leading to serious harm.

Companies that prioritize data privacy build trust, strengthen customer relationships, and can avoid costly lawsuits.

The Differences between Data Security and Data Privacy

Data security and privacy differ in terms of their focus. Data security is all about securing data, whereas data privacy is about the ethical and appropriate use of data.

For instance, an organization can have a robust data security strategy but still violate data privacy laws. For example, a company could be storing information such as customers' credit card data and email addresses in their servers. Still, the company could be violating data privacy laws by not obtaining consent or informing customers of how their information will be used.

On the other hand, a company can ensure that data privacy is always maintained but still suffer from a data breach. If appropriate precautions are not taken, this can lead to data that is otherwise protected by privacy regulations being compromised.

Conclusion

Data security and data privacy are essential considerations for any organization that handles sensitive data. Understanding the difference between them is key, as they must be addressed in different ways.

Data security ensures that the data is safe from unauthorized access and cyber-attacks, while data privacy ensures that data is collected, processed, and used appropriately, ensuring individual rights and freedoms are protected.

A company that invests in both data security and privacy builds trust, maintains compliance with regulatory requirements, and avoids reputational harm and financial penalties.

References:

© 2023 Flare Compare