The main difference between data privacy and data security is that privacy governs how data is collected, shared, and used, while security refers to how data is protected from unauthorized access and threats. Privacy focuses on compliance and user rights, while security focuses on protection and defense mechanisms.
Yet, many organizations still confuse these distinct concepts, a mistake that can be costly. For example, a single data breach can cost a small business an average of $108,000, often due to security failures that also trigger privacy violations.
⚠️ Both privacy and security failures can have serious consequences. Non-compliance with regulations like the GDPR can result in fines of up to 4% of annual revenue, while security breaches can expose sensitive data, disrupt operations, and lead to costly legal and reputational fallout.
Our cybersecurity services provide comprehensive protection for businesses of all sizes, helping you navigate both privacy and security challenges with expert guidance.
The difference between data privacy and data security in more detail
Data privacy and data security are different concepts that work together to create comprehensive data protection. Understanding these distinctions helps businesses implement more effective information management strategies.
- Data privacy is the right of individuals to control how their personal data is collected, used, and shared. It focuses on ensuring proper consent, transparency about data collection practices, and giving data subjects control over their information. Privacy revolves around the policies and compliance with regulations that govern how personal information should be handled ethically and legally.
- Data security focuses on the protection of data from unauthorized access, breaches, or theft. It involves implementing technical safeguards, tools, and security practices that prevent data loss and ensure data integrity. Security protects information from external threats and malicious actors through concrete defensive measures.
⚖️ Think of privacy as the legal and ethical framework governing what data you can collect and how you use it, while security represents the practical tools and technologies that safeguard data from unauthorized access.
Additional reading: cyber security best practices for employees
Comparison Table: Data Privacy vs Data Security
| Aspect | Data Privacy | Data Security |
|---|---|---|
| Focus | Rights and consent of individuals | Protection of data assets |
| Key Question | Should we collect/use this data? | How do we protect the data we have? |
| Governed By | Laws and regulations (GDPR, CCPA) | Security frameworks and best practices |
| Primary Tools | Policies, consent mechanisms, transparency notices | Firewalls, encryption, access controls |
| Violation Example | Sharing customer data without permission | A hacker gaining access to stored data |
| Responsibility | Legal, compliance, governance teams | IT security teams |
| Metrics | Consent rates, privacy request fulfillment | Uptime, breach prevention, incident response time |
Data privacy and security: Why both matter
Having strict privacy policies without strong security is like locking up sensitive documents in a cabinet but leaving the office door wide open. Likewise, implementing advanced security tools without considering privacy is like guarding a vault full of information you were never authorized to collect.
💡In 2020, Morgan Stanley was fined $60 million after failing to properly erase sensitive customer data from decommissioned data center equipment. Although the company had strong privacy policies in place, poor security practices during the hardware disposal process led to potential data exposure, a clear case where security implementation fell short despite good privacy intentions.
💡Conversely, in 2023, BetterHelp, a popular mental health platform, was fined $7.8 million by the FTC for sharing users’ sensitive health data with advertisers like Facebook and Snapchat, even after promising users that their information would remain confidential. In this case, the issue wasn’t inadequate cybersecurity but a violation of users’ privacy expectations and consent, showing how privacy governance failed despite a secure platform.
These examples highlight why your business needs both strong privacy governance and robust data security implementation. According to the Federal Trade Commission, organizations must build both privacy and security into their processes from the ground up, rather than treating them as afterthoughts.
Data security and privacy pillars every business should know
Creating a comprehensive data protection strategy requires understanding the key pillars that support both data privacy and security. Building upon these foundations will help ensure data integrity while maintaining compliance with privacy laws.
1. Confidentiality
Confidentiality ensures that data is only accessible to authorized individuals. This component of data security restricts access based on need-to-know principles and prevents exposure of sensitive information.
Privacy depends on confidentiality to ensure that personal data shared with your organization remains protected and is only used for the specific purposes for which it was collected.
2. Integrity
Data integrity ensures information remains accurate and unaltered throughout its lifecycle. Security controls that protect against unauthorized modifications are essential for maintaining trust in your systems.
💡 When data integrity is compromised, even seemingly minor alterations can have major consequences, especially in industries like healthcare or finance where precision is vital.
Privacy regulations often require businesses to maintain the integrity of personal data they collect, making this a fundamental aspect of data protection.
3. Availability
While protecting data from unauthorized access is essential, legitimate users still need appropriate access to perform their jobs. Security measures must balance protection with accessibility.
Privacy frameworks recognize that data subjects have the right to access their personal data, making availability an important aspect of data management.
4. User consent
Privacy laws like the General Data Protection Regulation and California Consumer Privacy Act emphasize obtaining explicit consent before collecting and processing personal data. This forms the legal basis for most data processing activities.
Security supports consent management by ensuring that preference settings are protected and cannot be altered without authorization.
5. Access control
Restricting access to sensitive data through authentication and authorization adds a layer of security by requiring verification of identity before granting access to your data.
Privacy compliance depends on proper access controls to ensure that only authorized personnel can view personal data, supporting the principle of data minimization.
6. Encryption
Encryption transforms readable data into encoded text that can only be deciphered with the correct key. This essential security practice protects data both in transit and at rest.
Privacy regulations increasingly recognize encryption as a recommended method for protecting personal data from unauthorized access.
7. Role-based permissions
Assigning access privileges based on job functions helps limit exposure of sensitive data. This approach to data privacy ensures employees only access information necessary for their specific roles.
According to the National Institute of Standards and Technology (NIST) Privacy Framework, role-based access controls are vital for managing privacy risks while allowing business operations to continue efficiently.
8. Secure storage and retention policies
Implementing proper data storage with built-in data protection and clear retention periods helps minimize privacy concerns by ensuring data isn’t kept longer than necessary.
Security focuses on the protection of stored data for as long as it needs to be retained, while privacy dictates when that data should be securely deleted.
✔️ By building your data strategy on these foundational pillars, you can protect sensitive information, maintain customer trust, and stay compliant with evolving privacy laws.
Want actionable ways to protect your business right now? Download our free checklist with 16 proven strategies to guard against privacy breaches and cyberattacks.
Privacy vs security: Real-world examples and scenarios
Understanding the differences between data privacy and data security becomes clearer through practical examples. Here are several scenarios that illustrate these distinctions:
- Privacy violation without security breach: A fitness app company legally collects workout data but then sells it to health insurance companies without user consent. The data is securely transferred (good security) but used in ways users didn’t agree to (poor privacy).
- Security breach without privacy violation: A company with clear privacy policies experiences a ransomware attack that encrypts its customer database. This is a security failure, but if no data was actually exposed or misused, privacy policies weren’t necessarily violated.
⚠️ Even with strong security measures to protect personal data, sharing customer information with marketing partners without explicit consent constitutes a privacy violation that could lead to significant regulatory penalties regardless of how securely the data was transferred.
- Both privacy and security failure: An employee downloads an unencrypted database of patient records to their personal laptop to work from home, which is then stolen from their car. This represents both a security failure (lack of encryption) and a privacy violation (inappropriate handling of sensitive health information).
- Privacy violation despite strong security: A small accounting firm stores client tax documents on a secure cloud server (good security), but doesn’t have a privacy policy informing clients about this practice or retention periods. When the firm’s owner decides to use client contact information for a personal business venture, this represents a privacy breach despite the data being securely stored.
Data protection and privacy laws you should know
The regulatory landscape around data privacy continues to evolve, with security and privacy requirements becoming increasingly stringent.
From healthcare to consumer data, different regulations govern how businesses must handle personal information. Laws like HIPAA, GDPR, and CCPA each have their own requirements, but all emphasize the importance of transparency, consent, and strong security practices
HIPAA (Health Insurance Portability and Accountability Act)
HIPAA establishes standards for protecting sensitive patient health information. It requires covered entities to implement security controls to safeguard data from external threats and unauthorized access.
The privacy rule component focuses on how personal health information can be used and disclosed, setting boundaries on medical record use while enabling necessary information flow for healthcare delivery.
⚠️ According to the U.S. Department of Health & Human Services, HIPAA violations can result in fines ranging from $141 to $71,162 per violation, depending on the level of negligence. Annual penalties can reach up to $2.13 million for repeat or unaddressed violations.
GDPR (General Data Protection Regulation)
The GDPR is often considered the gold standard of global privacy laws. It gives EU citizens control over their personal data and requires businesses to implement security measures to protect personal information.
Key provisions include:
- The right to access personal data
- The right to be forgotten
- Mandatory breach notification
- Privacy by design requirements
These regulations apply to any organization processing the personal data of EU citizens, regardless of where the company is located.
CCPA/CPRA (California Consumer Privacy Act/California Privacy Rights Act)
California’s privacy framework grants residents specific rights over their personal data, including the ability to know what is collected, request deletion, and opt out of data sales. It also imposes security obligations on businesses that handle consumer information.
While CCPA and CPRA apply to California residents, they’ve set the standard for similar legislation across the U.S., such as laws in Virginia, Colorado, Connecticut, and Utah. Businesses operating nationally should prepare for a growing patchwork of state-level privacy requirements.
Unsure if your business meets privacy and security requirements? Let’s talk.
Why your business needs both data privacy and security
Implementing effective data privacy and security measures together creates a comprehensive shield for your organization’s information assets. This holistic approach reduces risk, builds customer trust, and ensures compliance with increasingly complex regulations.
When attackers target your systems, they look for vulnerabilities in both your security infrastructure and privacy practices. A weak password policy (security gap) might allow access to customer data that should have been anonymized or deleted under your retention policies (privacy requirement).
Developing a unified strategy that addresses both privacy concerns and security requirements provides multiple layers of protection and demonstrates your commitment to responsible data stewardship. Integrating privacy concerns into your interfaces and security architecture from the beginning is far more cost-effective than retrofitting systems after a breach or compliance failure.
⚠️ The cost of a data breach often extends beyond technical recovery — it can include legal penalties, lost customer trust, and long-term reputational damage tied to both privacy and security failures.
How CMIT Solutions can help protect your business
At CMIT Solutions, we understand the many data privacy and security challenges facing today’s businesses. Our comprehensive approach helps organizations address both aspects of data protection with specialized services tailored to your industry needs.
Our team implements a range of security measures to protect personal information and business assets while ensuring compliance with privacy regulations. We take a proactive approach to data privacy that incorporates best practices for ensuring data security.
We provide:
- Privacy impact assessments
- Comprehensive security audits
- Employee training on both privacy and security best practices
- Implementation of technical safeguards
- Development of customized policies and procedures
- Ongoing monitoring and management of security controls
Give us a call today at (800) 399-2648 or visit us online to learn how we can help safeguard your business data through our comprehensive protection services.
FAQs
How can I quickly assess if my organization is compliant with data privacy regulations?
Start by identifying what types of personal data your organization collects, where it’s stored, and how it’s processed. Compare your current privacy policies against the requirements of relevant laws like GDPR or CCPA. Look for gaps in consent processes, documentation, or security measures.
For a more thorough evaluation, consider conducting a formal privacy impact assessment. This structured analysis examines your data collection practices, processing activities, and security controls to identify compliance gaps and privacy risks that need addressing.
What are the immediate steps I should take if I suspect a data breach in my company?
First, contain the breach by disconnecting affected systems from the network to prevent further data loss. Simultaneously, document everything you know about the incident, including timestamp, affected systems, and potential impact.
Next, engage your incident response team or IT security provider to investigate the scope of the breach. Depending on findings and applicable privacy laws, you may have legal obligations to notify affected individuals and regulatory authorities within specific timeframes, often as short as 72 hours under regulations like GDPR.
Are there any cost-effective solutions for small businesses to improve their data privacy and security?
Yes, small businesses can implement several affordable measures. Start with basic security measures like multi-factor authentication, regular security training for staff, and encrypted data storage solutions. For privacy, create clear data collection notices and implement data minimization practices.
Consider using privacy-focused software tools that build compliance features into their products. Many offer free or low-cost tiers for small businesses. Additionally, templates for privacy policies and data processing agreements are available from organizations like the International Association of Privacy Professionals at reasonable rates.
How do I explain the importance of data privacy and security to non-technical stakeholders in my organization?
Focus on business outcomes rather than technical details. Highlight how privacy builds customer trust and security prevents costly breaches. Use concrete examples of similar companies that have faced penalties or reputational damage from privacy violations or security incidents.
Quantify the risks by discussing potential costs of non-compliance, including regulatory fines, legal expenses, business disruption, and customer churn. Emphasize that both privacy and security are important to understand the differences between them and how they work together to protect the organization’s assets and reputation.
How can your services help my company navigate the complexities of data privacy and security implementation?
Our comprehensive services address the complete spectrum of data protection needs. We begin with thorough assessments of your current privacy practices and security posture to identify vulnerabilities and compliance gaps specific to your industry.
Based on these findings, we develop customized solutions that include technology implementation, policy development, and employee training. Our ongoing managed services provide continuous monitoring of your systems for security threats while keeping your privacy frameworks updated as regulations evolve, creating a seamless approach to data privacy and security that grows with your business.
