Personally identifiable information (PII) is data that, either alone or when combined with other relevant information, can be used to identify an individual.
PII includes direct identifiers such as passport details, which uniquely pinpoint a person, and quasi-identifiers like race, which when combined with other quasi-identifiers such as date of birth, can effectively identify a specific individual.
Understanding Personally Identifiable Information
The evolution of technology platforms has transformed business operations, government regulations, and interpersonal relationships. Through digital tools such as cell phones, the Internet, e-commerce, and social media, there has been a proliferation of diverse data.
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Referred to as “big data,” this abundance of information is gathered, analyzed, and processed by businesses and shared among different entities. The vast array of insights provided by big data has empowered companies to enhance their interactions with customers.
Nevertheless, the rise of big data has also amplified instances of data breaches and cyberattacks by entities aware of its value. Consequently, concerns have arisen regarding how companies manage their consumers’ sensitive information. Regulatory bodies are advocating for new laws to safeguard consumer data, while users are seeking more anonymous methods of engaging digitally.
Sensitive vs. Non-Sensitive Personally Identifiable Information
Sensitive PII
Personally identifiable information (PII) can be categorized into sensitive or non-sensitive types. Sensitive personal information encompasses legal data such as:
- Full name
- Social Security Number (SSN)
- Driver’s license number
- Mailing address
- Credit card details
- Passport information
- Financial records
- Medical data
This list is not exhaustive.
Companies that disclose client data typically employ anonymization techniques to encrypt and obscure the PII, rendering it non-personally identifiable. For instance, an insurance company sharing client information with a marketing firm will mask sensitive PII within the data, providing only relevant information aligned with the marketing firm’s objectives.
Non-Sensitive PII
Non-sensitive or indirect personally identifiable information (PII) is readily obtainable from public outlets such as phonebooks, the Internet, and corporate directories. Examples of non-sensitive or indirect PII comprise:
- Zip code
- Race
- Gender
- Date of birth
- Place of birth
- Religion
The above catalog encompasses quasi-identifiers and instances of non-sensitive data accessible to the public. Such information, on its own, is insufficient to ascertain an individual’s identity.
However, non-sensitive data, despite its lack of sensitivity, is linkable. This implies that when combined with other personally linkable information, non-sensitive data can uncover an individual’s identity. De-anonymization and re-identification methodologies tend to be effective when multiple sets of quasi-identifiers are amalgamated, enabling the differentiation of one person from another.
Personally Identifiable Information Around the World
The definition of personally identifiable information (PII) varies depending on the jurisdiction. Here are the privacy frameworks in specific regions:
United States
In the United States, as of 2020, “personally identifiable information” is defined as anything that can “be used to distinguish or trace an individual’s identity,” such as name, Social Security Number (SSN), and biometric information, either alone or in combination with other identifiers like date of birth or place of birth.
Europe
In the European Union (EU), the definition is expanded to include quasi-identifiers as outlined in the General Data Protection Regulation (GDPR), which went into effect in May 2018. The GDPR establishes rules for collecting and processing personal information for EU residents.
Australia
Personal information is protected by the Privacy Act 1988, which regulates the collection, storage, use, and disclosure of personal information by both the federal government and private entities. Amendments to this act address healthcare identifiers and the obligations of entities in the event of a data breach.
Canada
The Personal Information Protection and Electronic Documents Act governs the use of personal information for commercial purposes. It defines personal information as data that, either alone or when combined with other information, can identify an individual.
Personally Identifiable Information vs. Personal Data
Personal data extends beyond the scope of personally identifiable information (PII). For example, it includes your IP address, device ID numbers, browser cookies, online aliases, and genetic data. Attributes such as religion, ethnicity, sexual orientation, or medical history may qualify as personal data without necessarily being personally identifiable information.
How PII Is Stolen
Many identity thieves discover personal information about unsuspecting victims by rummaging through their discarded mail, which can provide details like names, addresses, and sometimes employment, banking relationships, or social security numbers.
In today’s digital age, identity theft often occurs through the Internet. Phishing and social engineering attacks use deceptive websites or emails to trick individuals into revealing important information such as their name, bank account numbers, passwords, or social security number. Similarly, deceptive phone calls or SMS messages can also be used to obtain this information.
What Do Hackers Do with PII?
When hackers acquire credit card information, they can exploit it to conduct purchases while posing as the cardholder. However, the gravest risks emerge when hackers amalgamate various pieces of personal data. Many institutions necessitate multiple data points to authenticate someone’s identity. In certain instances, a hacker might obtain initial data, such as an email address, and subsequently leverage it to acquire more personally identifiable information (PII), eventually amassing enough to breach more secure accounts, such as an individual’s bank.
Hackers employ email phishing techniques to obtain passwords or Social Security Numbers (SSNs). Consequently, entities like the Department of Labor (DOL) emphasize transparency regarding data collection, ensuring that they specify the intended use of the data in email requests. Phishing scammers often attempt to replicate the appearance of legitimate service providers to deceive their targets into a false sense of security.
Once a threat actor possesses the requisite information, they can impersonate the individual and perpetrate cybercrimes in their name or sell their data on the dark web. Cybercriminals may also assume the individual’s identity to infiltrate their social media circle, gathering additional information that they subsequently exploit to impersonate the target.
Personally Identifiable Information Breaches
There have been numerous instances of customer PII being compromised from various companies, often resulting in substantial fines.
As of October 2023, the largest recorded fine was imposed on Didi Global, a Chinese ride-hailing company, amounting to 8.026 billion yuan ($1.1 billion) by the Cyberspace Administration of China for violations of the nation’s network security, data security, and personal information protection laws. Other notable recipients of significant fines for inadequate protection of personally identifiable information include Equifax, Amazon, and Meta.
Facebook–Cambridge Analytica Data Scandal
One of the most infamous cases involves Meta, formerly known as Facebook, in the Facebook–Cambridge Analytica Data Scandal. During the 2010s, the profiles of 30 million Facebook users were harvested without consent by Cambridge Analytica, an external company. Cambridge Analytica obtained this data through a researcher affiliated with the University of Cambridge who developed a Facebook app, disguised as a personality quiz.
The app was designed to collect data from users who volunteered to participate in the quiz. However, due to a loophole in Facebook’s system, it also harvested data from the friends and family members of quiz participants.
Consequently, over 50 million Facebook users had their data exposed to Cambridge Analytica without their consent. Despite Facebook prohibiting the sale of user data, Cambridge Analytica proceeded to sell the data for political consulting purposes.
The data breach not only impacted Facebook users but also had financial ramifications. In its Q1-2019 report, Facebook disclosed $3 billion in legal expenses, leading to a 20 percentage point decrease in operating margin and a reduction of $1.04 in earnings per share.
This incident marked the beginning of a series of financial setbacks for the company, including hefty fines and ongoing expenses. Additionally, the data breach tarnished Facebook’s reputation and prompted some users to discontinue using the platform.
Safeguarding Personally Identifiable Information (PII)
Various countries have implemented multiple data protection laws to establish guidelines for companies handling the personal information of clients, covering its collection, storage, and sharing. These laws emphasize fundamental principles, including the limitation of sensitive information collection to essential circumstances.
Additionally, regulatory directives mandate the deletion of data once it serves its intended purpose, and personal information should only be disclosed to entities capable of ensuring its protection.
Cybercriminals exploit data breaches to acquire personally identifiable information (PII), subsequently selling it to interested buyers in clandestine digital marketplaces. For instance, in 2015, the IRS experienced a data breach resulting in the theft of PII from over a hundred thousand taxpayers.
By leveraging quasi-information pilfered from various sources, the perpetrators managed to penetrate an IRS website application by correctly answering personal verification questions, information intended solely for the taxpayers.
Tips on Protecting PII
While it’s impossible to achieve complete protection, you can minimize your vulnerability by reducing opportunities for the theft of your personally identifiable information (PII). Experian, one of the leading credit agencies, offers several suggestions to decrease your exposure.
For instance, securing a locked mailbox or using a PO box can hinder thieves from pilfering your mail. Additionally, removing personal identifiers from junk mail and other documents makes it challenging for identity thieves to link a name with an address. Similarly, refrain from carrying unnecessary PII, such as your social security card, in your wallet.
Likewise, there are precautions you can take to mitigate online identity theft risks. Given that data breaches are a significant source of identity theft, it’s crucial to employ unique, complex passwords for each online account. Always encrypt valuable data and utilize passwords for every phone or device. Additionally, consider reformatting your hard drive before selling or donating a computer.
What Qualifies as PII?
The U.S. government defines personally identifiable information (PII) as:
“Information that can be used to distinguish or trace an individual’s identity, such as their name, Social Security Number, biometric records, etc., either alone or when combined with other personal or identifying information that is linked or linkable to a specific individual, such as date and place of birth, mother’s maiden name, etc.”
What is Not PII?
Personal data does not fall under the category of personally identifiable information (PII). Non-personal data includes factors like the company of employment, shared data, or anonymized data.
FAQ’s
What is Personally Identifiable Information (PII)?
Personally identifiable information (PII) refers to data that can be used, either alone or in conjunction with other information, to identify an individual. This includes direct identifiers like name, Social Security Number (SSN), and biometric records, as well as quasi-identifiers such as race or date of birth.
How has big data impacted privacy and security?
The evolution of technology platforms and the proliferation of big data have transformed business operations, government regulations, and interpersonal relationships. While big data provides valuable insights, it has also led to increased data breaches and cyberattacks, raising concerns about consumer data protection.
What is the difference between sensitive and non-sensitive PII?
Sensitive PII includes information like SSN, financial records, or medical data that require special protection due to their potential for harm if misused. Non-sensitive PII, such as zip code or date of birth, may not pose immediate risks on their own but can become identifiable when combined with other data.
How do different countries define and protect PII?
Various jurisdictions have distinct privacy frameworks. For example, the EU’s General Data Protection Regulation (GDPR) expands the definition of PII to include quasi-identifiers. In the US, PII is broadly defined and protected under federal and state laws.
What are common methods used by hackers to steal PII?
Hackers often exploit discarded mail or conduct online phishing attacks to obtain PII. Phishing involves deceptive emails or websites designed to trick individuals into revealing personal information like passwords or SSNs.
How do companies protect PII from breaches?
Companies employ anonymization techniques, encryption, and secure data storage practices to protect PII. Regulatory guidelines mandate data deletion when no longer needed and restrict sharing with entities unable to guarantee protection.
What are the consequences of PII breaches?
PII breaches can result in hefty fines for companies and damage their reputation. Victims of breaches may face financial losses or identity theft, leading to legal and financial repercussions for affected organizations.
How can individuals safeguard their PII?
Individuals can minimize risk by securing mailboxes, using complex passwords, encrypting data, and refraining from sharing unnecessary PII. Regularly updating security measures and being cautious of phishing attempts can also help protect against identity theft.
What steps can be taken to mitigate online identity theft risks?
To reduce online identity theft risks, use unique passwords for each account, enable two-factor authentication, and avoid sharing personal information on suspicious websites. Encrypting data and keeping software updated are also essential precautions.
How does data misuse impact individuals and organizations?
Data misuse, such as the unauthorized sharing or sale of PII, can lead to financial losses, legal consequences, and damage to trust between individuals and organizations. It underscores the importance of robust data protection measures and privacy regulations.
Conclusion
Protecting personally identifiable information (PII) is crucial in today’s digital landscape. While advancements in technology offer numerous benefits, they also expose individuals and organizations to cyber threats. By implementing robust security measures, adhering to regulations, and staying vigilant against potential risks, both businesses and individuals can mitigate the impact of data breaches. Ultimately, safeguarding PII is essential for maintaining privacy, security, and trust in an increasingly interconnected world.
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