Data privacy is a core principle of data security that concerns the correct handling of data with respect to consent and regulations. It is intimately connected to data security; one cannot exist without the other.
In a nutshell, practical data privacy revolves around three core concepts:
- Whether data is shared with third parties, and how;
- How information is legally collected and stored; and
- Data privacy standards and legislation that cover a particular region.
Why is data privacy important?
Data is the new currency of big business. Companies draw enormous value from consumer data, and without data gathering and storage safeguards, private information can be stolen and abused for financial gain.
From a business perspective, protecting data is now tantamount to protecting clientele and market hold. With consumers nowadays being more aware of the perils of stolen information, companies go to great lengths to maintain customer relationships by ensuring transparency, consent, lawfulness, and accountability.
Also, privacy forms the basis of one’s freedom. In today’s highly interconnected world, it stands for freedom from undesired and uninvited surveillance, be it as mundane as a company observing customer habits to improve marketability.
What’s the difference between data privacy and data security?
Data privacy is part and parcel of data security. Data security is a practice or culture that aims to protect business and personal information from both internal and external threats. To uphold that practice and ensure its success, the concepts of data privacy — which govern how data is collected, stored, and used — are applied.
What are the common data privacy standards?
General Data Protection Regulation (GDPR)
The GDPR is a legal framework that governs the collection and processing of personal data of people who reside within the European Union (EU). So if your business caters to European customers, you are compelled to abide by GDPR rules even if your business is based outside the EU.
The GDPR mandates that a minimum number of data disclosures should be met, and that consumers of a breach or data loss event should be notified in a timely manner.
Gramm-Leach-Bliley Act (GLBA)
Also known as the Financial Services Modernization Act of 1999, the GLBA is a US law concerned with protecting the private data of financial services users.
Under the GLBA, financial services sales personnel are only allowed to manage and market one type of financial product or instrument. The law also compels banks to inform consumers of their data sharing practices and allows consumers to opt out if they do not want their private information to be disclosed.
California Consumer Privacy Act (CCPA)
The CCPA gives California-based consumers additional rights and protections with regards to how businesses handle their private data. If your business serves clients in California, you may be compelled to abide even if your business operates in, say, Las Vegas.
Under the CCPA, businesses are obliged to notify customers in advance that their information will be collected. The law also ensures that consumers can easily exercise their rights as provided by the act.
Health Insurance Portability and Accountability Act (HIPAA)
The HIPAA is a law that sets standards for accessing, storing, and sharing medical information so that it can’t be used fraudulently. It overrides state laws, unless there are existing state laws that are more stringent.
To prevent identity theft, HIPAA standards are enforced on medical policies, technologies, and records management practices. The act also states that noncompliance with these standards is unlawful and can be prosecuted to its fullest extent.
Kortek Solutions cares about your data privacy and the integrity of your information systems. We provide data protection services that meet regulatory standards and prevent catastrophic loss. Give us a call today to learn more.