Sensitive Data, Big Risks: How to Protect PII in 2025

Protecting Personally Identifiable Information (PII) is one of the most critical challenges companies face today. Cyberattacks, human error, and third-party vulnerabilities constantly put this data at risk. Understanding what PII is, the dangers of mishandling it, and how to safeguard it with best practices is essential for maintaining customer trust and complying with regulatory requirements.

What Are PII (Personally Identifiable Information) vs. PI (Personal Information)?

PII is defined as any information that can be used to identify, contact, or locate a specific individual, either on its own or when combined with other easily accessible information.

• Personal Information (PI): Any data linked to an individual, even if it doesn’t directly identify them. For example: name, age, gender, state of residence, preferences, or browsing data.

• Personally Identifiable Information (PII): Information that, alone or combined with other details, can uniquely identify a person. For instance, a name is PI, but it becomes PII when linked with an address or date of birth.

In short, all PII is PI, but not all PI is PII. The narrower the context, the higher the chance that seemingly generic data can become identifying.

Categories of PII

• Direct PII – Information that immediately identifies an individual without the need for additional data (e.g., full name, Social Security number, passport, driver’s license, personal email, phone number, full physical address).

• Indirect PII – Data that may not identify a person on its own but can lead to identification when combined with other details (e.g., date of birth, ZIP code, gender, ethnicity, job information, IP address, device identifiers, login credentials like passwords or PINs).

• Sensitive PII – Data requiring extra protection due to its delicate nature (e.g., medical records, sexual orientation, political opinions, religious beliefs, biometric data, genetic information, criminal history).

Why Protecting PII Matters

The concept of PII has expanded far beyond traditional identifiers (like names and addresses) to include digital data such as persistent cookies, browser fingerprinting, geolocation metadata, and online behavioral patterns. Protecting PII is not just a legal duty – it’s also an ethical and strategic imperative for modern businesses.

Key Risks to PII

Despite regulations and heightened awareness, PII remains highly exposed. The most significant risks include:

• Cyberattacks and Data Breaches: Hackers constantly target organizations to gain unauthorized access to PII. Breaches caused by sophisticated attacks or simple human mistakes can lead to identity theft, financial fraud, and reputational damage.

• Phishing and Social Engineering: Fraudulent communications trick individuals into revealing PII, often exploiting human psychology and manipulation.

• Insider Threats: Employees, contractors, or other trusted insiders may misuse or leak sensitive information – intentionally or accidentally – resulting in compliance violations.

• Third-Party Vulnerabilities: Weak security practices at vendors or service providers can compromise shared PII.

• Emerging Technologies: IoT, AI, and cloud services, while valuable, open new vectors for exposure. Companies must adopt robust safeguards to mitigate these risks.

Consequences of Mishandling PII

Improper PII management can have devastating effects:

• Financial Penalties: Privacy regulations impose fines that can reach a significant percentage of annual global revenue.

• Legal Consequences: Beyond administrative fines, companies may face lawsuits, including class actions, with high damages and extended legal costs. In some jurisdictions, executives can also face personal criminal liability.

• Reputational Damage: Loss of customer trust often outweighs direct fines, leading to decreased sales, customer churn, and brand devaluation.

• Operational Disruption: Investigations, corrective measures, and system recovery consume major resources and can halt business operations.

• Loss of Competitive Advantage: In industries where trust is critical, privacy violations can permanently erode competitive positioning.

Best Practices to Safeguard PII

1. Identify All PII Across Data Repositories
   Use advanced scanning tools and algorithms to locate every form of PII across managed, unmanaged, and SaaS-hosted data repositories. This increases visibility, enhances digital footprint management, and enables targeted security measures.

2. Classify
   PII by Sensitivity
   Establish a comprehensive classification system to prioritize security measures and allocate resources based on the level of risk.

3. Minimize Non-Essential Data
   Limit the collection and storage of unnecessary personal data. Regularly review data retention needs and apply minimization strategies like pseudonymization and anonymization. Define clear retention policies to safely delete outdated or unused data.

4. Implement Data Privacy Practices

   • De-identification: Remove or modify identifiers to disconnect data from individuals.

   • Pseudonymization: Replace personal identifiers with non-sensitive tokens.

   • Anonymization: Ensure data can never be linked back to individuals.

   • Data Usage Policies: Establish clear internal guidelines, train staff, and enforce compliance with access controls and audits.

   • Cookie and Consent Management: Ensure compliance with GDPR, CCPA, and LGPD by implementing transparent consent solutions.

   • Data Subject Access Requests (DSARs): Simplify processes for individuals to access their data, respond promptly, and keep detailed compliance records.

   • Right to Be Forgotten (RTBF): Implement secure deletion procedures while balancing with legal or fiscal obligations.

   • Data Inventory Management: Maintain an up-to-date record of all PII collected, processed, and stored.

5. Proactive Data Loss Prevention
   Adopt automated scanning tools to detect data leaks and vulnerabilities in code. Conduct regular code reviews, penetration tests, and integrate security into the software development lifecycle.

Conclusion

Protecting PII is more than a legal requirement – it is a strategic pillar of business competitiveness. Companies that adopt a proactive, systematic approach to data protection reduce the risk of breaches, strengthen compliance, and build long-lasting customer trust