We live in an era where personal data and confidential information are completely digitized and accessible to anyone. This reality has led to the establishment of laws and regulations for the protection of data privacy, such as the General Data Protection Regulation (GDPR).
What is the main objective of data protection laws? To protect the fundamental rights and freedoms of individuals regarding the processing of their personal data. In order to achieve this objective, the law suggests taking measures that safeguard the privacy of personal information and ensure proper storage and use of personal data.
One of the measures proposed by the GDPR is data anonymization, a process that removes or modifies any data that can directly or indirectly identify a person. Through anonymization, data privacy is ensured, preventing them from falling into the hands of unauthorized third parties and being misused.
WHAT DATA DOES GDPR CONSIDER TO BE ANONYMIZED?
It is crucial to ensure effective data anonymization to prevent the possibility of identifying the individual behind the information. Therefore, it is critical to apply appropriate techniques and security measures to ensure the protection of the privacy and confidentiality of anonymized data and to prevent any attempts at identification or misuse. Proper application of personal data anonymization ensures that in the event of security breaches or cyberattacks, sensitive information is not exposed, avoiding reputational and economic damage.
So, what data does GDPR consider should be anonymized? These are the data that the regulations identify as personal data and that should be anonymized to avoid potential penalties and fines:
- Personal identification data: Name, surname, identification number, photograph, address, phone numbers, email addresses, etc.
- Personal characteristics data: Age, gender, date of birth, marital status, nationality, etc.
- Location data: Exact address, geographic coordinates, GPS data, etc.
- Economic and financial data: Bank account numbers, transaction history, income, debts, etc.
- Health data: Medical information, medical history, health conditions, medical treatments, etc.
- Genetic and biometric data: Information about genetic characteristics, fingerprints, facial features, etc.
- Preferences and profiles data: Information about interests, behaviors, purchases, online preferences, etc.
WHO NEEDS TO COMPLY WITH GDPR AND HOW TO DO IT THROUGH ANONYMIZATION?
Regulatory compliance with the GDPR applies to all companies, public entities, or professionals who handle personal data of third parties. This regulation applies at the European level, as it falls within the legal framework of the European Union.
The anonymization of personal data, when effectively and properly implemented, can help fulfill various requirements of the European Union’s General Data Protection Regulation (GDPR). Below are some of the GDPR requirements that can be met through data anonymization:
- Principle of data minimization (Article 5, paragraph 1c): By anonymizing data, it ensures that only strictly necessary data are processed for a specific purpose, avoiding the processing of unnecessary personal data.
- Integrity and confidentiality (Article 5, paragraph 1f): Anonymization protects the confidentiality of personal data since once anonymized, it cannot be reversed to identify individual persons, thereby avoiding any breach of security and privacy.
- Rights of data subjects (Articles 15 to 22): Anonymization protects the rights of data subjects by ensuring that the data can no longer be linked to specific individuals. Therefore, the right of access, rectification, erasure, portability, and objection no longer apply to anonymized data.
- Legal basis for processing (Article 6): If the data has been properly anonymized and can no longer identify individual persons, the need for consent or other legal bases for processing personal data may no longer be required.
- International data transfers (Chapter V): If the data has been effectively anonymized, restrictions on international transfers of personal data may not apply, as the data would no longer be considered personal data protected by the GDPR.
- Data breach notification (Article 33): If the data has been adequately anonymized, security breaches related to this data may not be subject to the obligation to notify authorities or data subjects, as anonymization ensures that there is no risk to the rights and freedoms of individuals.
It is important to note that anonymization must be carried out correctly and effectively to meet all these GDPR requirements. If anonymization is not sufficient or can be easily reversed, the data will continue to be considered personal data and subject to GDPR regulations. Therefore, it is essential to ensure that the anonymization process is robust and rigorous to ensure proper compliance with GDPR provisions.
Given the above, anonymization has become an indispensable tool for GDPR compliance and to avoid breaches easily. However, performing proper and robust anonymization is an essential requirement to benefit from all its advantages.
PSEUDONYMIZATION OR ANONYMIZATION? WHICH IS IDEAL FOR GDPR?
Anonymization and pseudonymization are two different techniques for protecting the privacy of personal data and complying with the European Union’s General Data Protection Regulation (GDPR). Although both techniques aim to dissociate information from individuals, there are significant differences in how they are applied and the levels of protection they offer:
Anonymization:
Definition: Anonymization is a technique by which personal data is altered or removed in a way that it is no longer possible to identify individuals, either directly or indirectly.
- Irreversibility: Anonymization is an irreversible process. Once data has been properly anonymized, it cannot be reversed to identify individuals.
- GDPR Compliance: When data has been effectively anonymized, it is no longer considered personal data under the GDPR and is therefore outside the scope of regulation. GDPR obligations do not apply to anonymized data.
Pseudonymization:
Definition: Pseudonymization involves replacing certain identifying attributes of personal data with codes or different identifiers, so that the information is no longer directly linked to a person, but it is still possible to reassociate it using additional information stored separately (e.g., a key or token to reverse pseudonymization).
- Reversibility: Unlike anonymization, pseudonymization can be reversed using the appropriate association information, allowing the restoration of an individual’s identity.
- GDPR Compliance: Pseudonymization is considered a useful mechanism for protecting privacy and complying with the GDPR. Although pseudonymized data remains personal data, the GDPR recognizes that this technique can reduce risks to individuals’ rights and freedoms and offers some additional flexibilities and exemptions in certain obligations (such as data breach notification or facilitating data subjects’ rights) when data is pseudonymized.
In summary, the main difference between anonymization and pseudonymization lies in the irreversibility of the former and the controlled reversibility of the latter. Both techniques are useful for protecting privacy, but anonymization offers a higher level of protection as data becomes irreversibly anonymous and falls outside the scope of the GDPR, whereas pseudonymization remains a form of personal data processing but with certain additional advantages in terms of GDPR compliance. It is important to carefully evaluate which technique best suits the specific requirements and risks of each use case.
GDPR NON-COMPLIANCE DUE TO LACK OF DATA
The non-compliance of companies with the General Data Protection Regulation (GDPR) related to the lack of anonymization of personal data can lead to various violations and sanctions. Below are some of the main non-compliances related to the lack of anonymization:
Privacy Violation: If a company does not properly anonymize the personal data it possesses and if this data becomes compromised or exposed due to a security breach, it would violate the fundamental right to privacy of the individuals concerned.
Unauthorized Processing: GDPR establishes that the processing of personal data must have a valid legal basis. If the data is not anonymized and proper consent or another valid legal basis is lacking, the company would be in breach of this requirement.
Unsafe International Data Transfers: If a company transfers non-anonymized personal data to third countries without ensuring appropriate safeguards, it could violate GDPR’s restrictions on international data transfers.
Non-Compliance with Data Subject Rights: Data subjects have various rights under GDPR, such as the right to access, rectify, and erase their personal data. If the company has not properly anonymized the data, this could hinder or prevent the exercise of these rights by data subjects.
Lack of Protection in Data Analysis: If a company conducts data analysis without prior anonymization of the information, it could lead to the identification of individuals through data combinations, which would be a violation of GDPR.
Failure to Notify Data Breaches: If a security breach occurs that affects non-anonymized personal data, the company is obligated to notify the data protection authority and, in some cases, also the data subjects. Failure to make this notification would be a breach of GDPR.
The penalties for GDPR non-compliance can be significant and vary based on the nature and severity of the violation. They can include administrative fines of up to 4% of the company’s annual global turnover or up to 20 million euros, whichever is higher. Additionally, GDPR non-compliance can also result in damage to the reputation and trust of customers and business partners. Therefore, it is essential for companies to take appropriate measures to
WHAT CONSEQUENCES EXIST FOR NON-COMPLIANCE WITH THE DATA PROTECTION REGULATION?
There are various consequences that a company or organization can face for non-compliance with the General Data Protection Regulation (GDPR). The following are the repercussions that companies may experience when failing to meet data protection requirements:
Fines and Penalties: Data protection authorities have the authority to impose fines and economic penalties on organizations that violate GDPR through improper use of personal data. The fines and penalties can vary based on the severity and nature of the infringement:
- Serious Infringements: Fine of up to 10 million euros (or 2% of the annual revenue, whichever is higher).
- Very Serious Infringements: Fine of up to 20 million euros (or 4% of the annual revenue, whichever is higher).
Reputation Damage: GDPR non-compliance can have a negative impact on a company’s reputation. Data breaches or misuse of sensitive information can lead to distrust among customers and other stakeholders. Consequently, loss of trust can harm business relationships and damage the company’s image in the market.
Legal Actions and Compensation: Individuals affected by the breach of their personal data can take legal action against the responsible company. This may result in lawsuits, damages, and compensation claims, where the company may be required to financially compensate the affected individuals for GDPR non-compliance.
Investigations and Audits: Data protection authorities have the power to conduct investigations and audits when they suspect a company is not complying with GDPR. These investigations may involve requesting documentation, collecting evidence, and evaluating the organization’s data protection practices. If authorities find violations in these activities, they can take corrective measures and impose economic sanctions.
It is important to highlight that regulatory compliance with GDPR ensures the protection of privacy and confidentiality of personal data to prevent its exposure to unauthorized third parties or malicious use. Additionally, it promotes the lawful and ethical use of sensitive information.
NYMIZ, THE ESSENTIAL TOOL FOR GDPR COMPLIANCE
Anonymization has become a key tool for companies to comply with GDPR and thereby avoid the negative impacts of non-compliance. Beyond data anonymization, ensuring that the process is effectively applied is undoubtedly an essential requirement to ensure regulatory compliance. Therefore, the proper selection of anonymization tools and processes is crucial.
Furthermore, due to the large volumes of information managed by companies, the anonymization process should be streamlined and not pose an obstacle to the daily operations of organizations.
Nymiz, through artificial intelligence, simplifies the process of data anonymization by automating it and making it accessible to users without technical knowledge. Thanks to natural language processing, our software detects personal data based on context and subsequently protects it. Additionally, it offers various substitution methods and customization options for the output, which can easily be tailored to the needs of our clients.
