Understanding the Differences Between Data Privacy and Data Security

Sumit Mudliar
Data Quality & Beyond
7 min readFeb 9, 2024
Photo by FlyD on Unsplash

In today’s digital world, data has become extremely valuable. But as more and more personal information is collected and shared online, people have become increasingly concerned about privacy and security with their data. While these terms are commonly used interchangeably, privacy and security refer to distinct concepts with key differences.

Data privacy is about the proper collection, use and safeguarding of personal information based on an individual’s rights and consent. At its core, data privacy aims to provide transparency around how data is gathered and used while enabling user control. Strong data privacy practices involve obtaining agreement, being open about uses of data, and allowing individuals ways to control their information.

In comparison, data security concentrates on the technical defenses against unauthorized parties accessing, altering or deleting data. Measures like encryption, access controls, and continuous cybersecurity monitoring help prevent data breaches and maintain the confidentiality, integrity and availability of sensitive information, like passwords or financial details.

While robust data security forms the foundation for privacy, the two are deeply tied together. Even the most sophisticated protections cannot 100% guarantee security — just one successful cyber attack or discovered flaw could lead to exposing sensitive data and a privacy violation.

In recent years, a wave of major data privacy and security incidents have put this issue into the national spotlight. Events like Facebook’s Cambridge Analytica scandal or the massive Equifax data breach caused widespread identity theft and fraud for individuals. Companies faced consequences like loss of customer trust, financial fallout, and regulatory action. But perspectives still differ across people, companies, and regulators about the root causes and real impacts.

The legal landscape around data privacy has changed tremendously, with a patchwork of new laws and requirements emerging globally. The EU’s General Data Protection Regulation (GDPR) sets high standards for data protection practices. California’s Consumer Privacy Act (CCPA) gives residents rights to know what personal data businesses collect and opt-out of its sale. There are growing calls for federal legislation too.

These evolving regulations have transformed how organizations must collect, manage and safeguard personal data. Internal privacy governance structures, public transparency reports, and limits on data use have become critical for compliance. Violations can lead to heavy fines.

To balance data utility with privacy, organizations are adopting techniques like anonymization, encryption, differential privacy, and synthetic data generation. While still emerging, these privacy-enhancing technologies allow insights with reduced disclosure risk. As they mature, companies can utilize personal information more securely.

For individuals, exercising more control over data and privacy starts with adjusting common app and website permissions as well as managing account privacy settings closely. Helpful tools like password managers, ad blockers, and VPNs add extra layers of protection against tracking and hacking when browsing online. Staying informed through easy resources from consumer privacy groups is key too.

The immense value of data analysis and data-driven innovation cannot be overstated. But the massive scale of information collection poses a double-edged sword. Sustainable progress will require collaborative efforts to develop clearer ethics and practices around data use.

Here are some thought-provoking questions to explore this nuanced issue:

  1. What are the different contexts where data analysis creates benefits versus privacy risks?
  2. How can we balance innovation and personalization through data with privacy rights?
  3. What role should governments, companies and the public play in shaping data rules and norms?

Continued open dialogue and active participation across all sides are critical to shaping a future that respects privacy within a thriving data economy. To make a difference:

  1. Share your perspectives and experiences to strengthen standards.
  2. Advocate for better privacy legislation in your communities and countries.
  3. Join conversations around ethical data policies and practices.

Only through commitment and consensus-building from citizens, policymakers, and industry leaders can we develop truly sustainable long-term solutions.

Ready to Dive Deeper

Key Details on Major Data Incidents

Cambridge Analytica Scandal — Data Privacy Incident

The Cambridge Analytica scandal was primarily a data privacy incident, but it also involved some elements of data security failure.

Here’s an analysis of why it’s largely considered a data privacy issue:

  1. It centered on the inappropriate collection and use of personal data without users’ consent. This violated core privacy principles.
  2. User data was exploited for purposes that people were not aware of and likely would not have agreed to. This contradicts privacy rights.
  3. Facebook failed to limit third-party app access to friend data that it should have safeguarded better.
  4. Psychological targeting techniques raised ethical concerns about manipulative use of private information.

However, some data security factors were also at play:

  1. Facebook’s lax platform policies and APIs made it easy to extract large amounts of data in bulk.
  2. Once extracted, it’s unclear what data security provisions protected the user data.
  3. Cambridge Analytica later suffered its own data breach, suggesting poor security practices.

In summary, while Cambridge Analytica involved some data security missteps that enabled access to the data, the root of the scandal was the privacy violations that occurred in how the personal data was collected and applied for political targeting without appropriate consent. So it is viewed primarily as a data privacy failure by Facebook and the firms involved.

Equifax Data Breach — Data Security Incident

The Equifax data breach was primarily a data security incident, but it also resulted in significant data privacy implications.

Here’s a breakdown of why it qualifies more as a data security issue:

  1. The root cause was a vulnerability and weakness in Equifax’s technical security protections. Hackers exploited an unpatched flaw in their software to gain unauthorized access to sensitive systems and data.
  2. The attack focused on illegally breaching databases and extracting data through cyber intrusion methods. This is a hallmark data security failure.
  3. It highlighted poor cybersecurity practices like outdated software, inadequate encryption, and lack of multi-factor authentication. Equifax failed to use reasonable security safeguards.

However, there were some important data privacy ramifications as well:

  1. The personal information of over 140 million consumers was exposed without their consent or knowledge. This violates core privacy principles.
  2. The types of data stolen, like SSNs, dates of birth, addresses, etc. enabled extensive financial fraud and identity theft — clear individual privacy harms.
  3. It eroded trust in how securely and responsibly Equifax was stewarding sensitive personal data.

So in summary, while the Equifax breach centers on data security deficiencies that permitted unauthorized data access, the implications also severely damaged data privacy for millions of people given the sensitive nature of the information exposed. The incident underscores how robust data security is crucial for enabling effective data privacy protections in practice.

Evolving data privacy regulations

GDPR

  1. Requires explicit consent for data collection and use
  2. Gives individuals rights to access, correct, and request deletion of their personal data
  3. Mandates data breach notifications within 72 hours
  4. Implements principles of data minimization and purpose limitation
  5. Restricts international data transfers outside the EU
  6. Enforced through hefty fines of up to 4% of global annual revenue

CCPA

  1. Gives California residents rights to opt-out of sale of personal info to third parties
  2. Requires businesses to disclose personal data collection practices
  3. Allows individuals to request access to data collected about them
  4. Gives option for consumers under 16 to opt-in to sale of their personal info
  5. Enforced through fines up to $7,500 per violation
  6. Law applies to for-profit businesses meeting revenue/data collection thresholds

Proposed Federal Privacy Law

  1. Aims to create a unified baseline of standards across all states
  2. Would enforce rights like access, correction, deletion of personal data
  3. Allow consumers to opt-out of data collection/sale for targeted advertising
  4. Require opt-in consent for use of sensitive data like location information
  5. Establish standards for deidentified data use and AI algorithmic transparency

Tips to exercise more control over data privacy

  1. Regularly review and adjust privacy settings in social media accounts, mobile apps, and operating systems. Turn off location tracking, limit ad targeting, and opt out of data sales where possible.
  2. Be selective when granting app permissions. Only enable access to contacts, camera, microphone etc if essential for the app’s functionality.
  3. Use password managers like LastPass or 1Password to generate and store strong, unique passwords for each account. Enable two-factor authentication wherever available.
  4. Consider using privacy-focused web browsers like Firefox and DuckDuckGo that block online trackers. Browser extensions like Privacy Badger and uBlock Origin also help.
  5. When making online purchases, avoid saving payment information whenever possible. Use virtual credit card numbers from privacy.com or Abine Blur for added security.
  6. Frequently delete cookies and browsing history from internet browsers. Adjust settings to automatically clear this data on a regular basis.
  7. Evaluate using a VPN (virtual private network) to encrypt internet traffic when accessing public Wi-Fi or communicating sensitive information.
  8. Check personal data held by data brokers like Intelius and Spokeo and opt-out where possible. Some sites like MyData Request consolidate removal requests.
  9. Stay up to date on the latest privacy risks and best practices by following trusted sources like the EFF, Privacy International and the Identity Theft Resource Center.

Additional Resources

Government Resources:

  1. National Institute of Standards and Technology (NIST) Cybersecurity Framework: https://www.nist.gov/cyberframework — Provides a comprehensive framework for managing cybersecurity risks.
  2. Federal Trade Commission (FTC) Consumer Information: https://www.ftc.gov/ — Offers various resources on data privacy and security for consumers.
  3. European Union General Data Protection Regulation (GDPR): https://commission.europa.eu/law/law-topic/data-protection_en — Explains the key principles and requirements of the GDPR, a major data privacy regulation.
  4. California Consumer Privacy Act (CCPA): https://oag.ca.gov/privacy/ccpa — Provides information on the CCPA, which grants Californians specific rights over their personal data.

Industry Associations and Organizations:

  1. Cybersecurity & Information Security (CIS) Center: https://www.cisecurity.org/ — Offers best practices and guidance for improving cybersecurity posture.
  2. Cloud Security Alliance (CSA): https://cloudsecurityalliance.org/ — Promotes secure cloud computing through various initiatives and resources.
  3. Future of Privacy Forum (FPF): https://fpf.org/ — Conducts research and advocacy on privacy issues.
  4. Electronic Frontier Foundation (EFF): https://www.eff.org/ — Defends civil liberties in the digita

Privacy Tools and Resources:

  1. DuckDuckGo: https://duckduckgo.com/ — A privacy-focused search engine that does not track users’ searches.
  2. Privacy Badger: https://www.eff.org/pages/privacy-badger — A browser extension that blocks trackers and third-party cookies.
  3. Signal: https://signal.org/ — A secure messaging app that encrypts messages and calls.
  4. Have I Been Pwned? https://haveibeenpwned.com/ — Check if your email address has been compromised in a data breach.

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Sumit Mudliar
Data Quality & Beyond

Transforming ideas into reality through code. Driven by purpose, fueled by curiosity. Always learning and growing.