Sensitive Data Breach
All confidential information stored and managed by an individual or organization, accessed only to authorized users with permitted access, and clearance to view, shall be categorized under sensitive data. Personal identification information such as name, address, government-issued IDs, financial information, criminal records, and other data used to identify an individual is included in sensitive information. Despite the industry type and size, each organization has legal mechanisms to comply with and secure them. Intellectual property (IP) concerning the creations of humans, and IP rights that protect the rights of creators over their creations also form the framework of sensitive data.
Types of Sensitive Information – Private Data
- Personally Identifiable Information (PII) and Personal Information (PI) – PII includes PI, which may or may not be sensitive. Whereas PII like driver’s licenses, social security numbers, alien registration numbers, etc. are always sensitive.
Replacement
Personally Identifiable Information (PII) and Personal Information (PI):
- Definition: PII is any information that can be used to identify an individual directly or indirectly. PI is a broader term that encompasses PII as well as other information about an individual, even if it’s not directly identifying.
Legal Framework:
- Information Technology Act, 2000 (IT Act): Section 43A mandates organizations to protect sensitive personal data.
- Personal Data Protection Bill, 2019 (PDP Bill): The bill, though not yet enacted, provides a comprehensive framework for data protection, including definitions and regulations for PII and PI.
- Sensitive Personal Information (SPI) – It consists of all the data which is related to but does not directly resonate to an individual’s identity. Misuse of SPI can lead to harm or damage of sensitive data. Popular examples of SPI include – Account credentials, social security, precise geolocation, etc.
Replacement
Sensitive Personal Information (SPI):
- Definition: SPI is a subset of PII that is particularly sensitive and could cause significant harm if misused. Examples include financial information, biometric data, health records, sexual orientation, and political opinions.
Legal Framework:
- IT Act: Section 72A specifically designates certain types of information as sensitive personal data or information and imposes stricter protection measures.
- PDP Bill: The bill includes a more extensive list of SPI and establishes stricter requirements for its processing.
- Nonpublic Personal Information (NPI) – This type of sensitive information regulates financial services institutions and was introduced by the Glamm-Leach Bliley Act (GLBA). It includes all bank and account details, court records from a consumer court, etc.
ReplacementNonpublic Personal Information (NPI):
- Definition: NPI is financial information about individuals that is not publicly available. It’s primarily regulated by the banking and financial services sector.
Legal Framework:
- Banking Regulation Act, 1949 (BR Act): Section 45E mandates banks to protect the confidentiality of customer information.
- Reserve Bank of India (RBI) Master Directions on Data Security: Provides detailed guidelines on NPI protection for financial institutions.
- Material Nonpublic Information (MNPI) – It holds all data that can impact on a company’s share price. Some of which includes data relating to a company, its holdings, and subsidiaries that haven’t been publicly available to investors in general.
ReplacementMaterial Nonpublic Information (MNPI):
- Definition: MNPI is information about a company that is not yet publicly known but could significantly affect its share price if disclosed. It’s primarily regulated in the context of securities markets.
Legal Framework:
- Securities and Exchange Board of India (SEBI) (Prohibition of Insider Trading) Regulations, 2015: Prohibits insider trading based on MNPI.
- Companies Act, 2013: Mandates directors and officers to maintain confidentiality of company information.
Sensitive Data Loss – What’s at Stake
- Reputation Damage – An organization’s loss of sensitive data is likely to tarnish their reputation in the market, leading to loss of trust among their clients, customers, etc.
- Financial Losses – Loss of sensitive information can lead to an individual or organization’s financial losses associated with legal fees or intellectual property infringement.
- Identity Theft– Stealing financial or individual data may lead to theft of personal identity information, fraudulent purchases, bank accounts, etc.
- Legal and Regulatory Consequences – Breaching data security can open a Pandora’s box of legal trouble, financial penalties, and more, depending on the type of data exposed.
- National Security Risks – If the information lost is related to government or military operations, then it may induce national security risks.
Lex Sportiva is a Latin term that literally means "sports law." It is a body of law that governs the Read more
Foreign Direct Investment (FDI) has been instrumental in shaping the global economy, allowing capital to flow across borders and promoting Read more
In a startling turn of events, Go Airlines (India) Ltd (Go First) has announced its decision to file for voluntary Read more
NEW ANSWERS FOR NEW NEEDS, EXPLAINING THE RECENT CASE LAWS AND CHANGES IN ARBITRATION PRACTICE The law of arbitration in Read more
The recent advancements in technology and innovation, the European Union's approval of the world's inaugural regulations on artificial intelligence (AI) Read more
Economic audit and compliance are crucial procedures for ensuring that organizations and stakeholders follow legal and regulatory obligations Economic audit Read more
In India's ever-changing financial technology (FinTech) platform, both big institutions and new startups must understand the rules they In India's Read more
The post-Covid era led to stark changes in every individual’s work-life balance. While adapting to the ‘new normal’, trends like Read more
Aviation law - the "Law of the Air," is a legal framework that governs and regulates various aspects of air Read more
Building a strong and recognizable brand is essential for success in today’s globalized and intensely competitive business climate Building a Read more
