
Sensitive data is a critical subset of personal data that is protected by law and requires special care when being handled or processed. This is because it could cause significant harm to the organisation and individuals involved if compromised. Sensitive data includes information that could reveal an individual's racial or ethnic origin, political opinions, religious or philosophical beliefs, health status, and financial data. It also includes trade secrets, personally identifiable information (PII), and biometric information. Understanding what constitutes sensitive data is essential for organisations to ensure compliance with data privacy laws and to maintain the trust of their customers and partners.
| Characteristics | Values |
|---|---|
| Personally identifiable information (PII) | Names, physical appearance, addresses, social security numbers, account numbers, credit/debit card numbers, biometric information |
| Health data | Current, past, or future health status, health insurance, treatments, care received |
| Genetic data | Genetic characteristics that give unique information about the physiology or health of a natural person |
| Trade secrets | Information vital to an organization's operations that confers a competitive advantage |
| Customer data | Information about a customer or client that ought to remain confidential |
| Financial data | Credit card numbers |
| Intellectual property | Trade secrets, patents, copyrights, trademarks |
| Material Nonpublic Information (MNPI) | Data relating to a company, its holdings, and subsidiaries that could impact its share price |
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What You'll Learn

Genetic data
In the European Union, genetic data is specifically listed as a category of sensitive data in Article 9 of the General Data Protection Regulation (GDPR). This classification reflects the increasing use of genetic data and the growing concerns surrounding its application. The inclusion of genetic data in this category indicates that it may be used to discriminate against individuals based on specific characteristics. As such, the processing of genetic data is generally prohibited unless specific legal conditions are met, and organisations must ensure they have a lawful basis for doing so.
The identifiability of genetic data is a key factor in determining its sensitivity. In certain situations, genetic data can be connected to a particular individual, even without directly identifying information. This raises privacy concerns, as unauthorised access to or misuse of genetic data can have far-reaching consequences. For example, genetic data can reveal sensitive or embarrassing personal information, impact an individual's employability or insurability, or lead to genetic discrimination.
To address these concerns, various laws and policies have been established to protect the privacy of individuals' genomic information. In the United States, the Genetic Information and Nondiscrimination Act of 2008 (GINA) protects the genetic privacy of the public. Additionally, Certificates of Confidentiality may be issued to researchers handling sensitive genetic information, allowing them to withhold identifying information and protect the privacy of research participants.
While not all genetic data is identifiable or sensitive, it is important to treat it with caution. The rapid proliferation of big data genomics and data processing capabilities has led to a growing presence of genetic data. As such, a nuanced approach is needed to assess the privacy risks posed by its use, considering factors such as the proposed use, the amount of data, and its uniqueness.
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Health data
Under the UK and EU GDPR (General Data Protection Regulation), health data is subject to strict rules and can only be processed by health professionals who are bound by the obligation of medical secrecy, also known as professional secrecy or doctor-patient privilege. This obligation is based on the idea that patients need to trust their physician's discretion and feel comfortable disclosing information to receive accurate diagnoses and proper treatment. The World Medical Association's WMA Declaration of Geneva, part of the internationally recognised ethical codes of conduct for medical professionals, also includes this duty of confidentiality.
To ensure compliance, organisations should conduct regular audits to identify personal and special category data, limit collection to only the necessary information, encrypt and restrict access to special category data, and train staff on data distinctions and implications. Additionally, health data should be stored separately from other personal data, preferably in locked drawers or filing cabinets for physical records, and encrypted and/or pseudonymised for digital records.
In the context of the workplace, health data may be collected for pre-recruitment medical examinations, annual medical visits, sick leave management, and requests to work part-time to care for ill or disabled family members. In such cases, HR staff dealing with administrative or financial procedures related to health data should sign a specific confidentiality declaration and be regularly reminded of their confidentiality obligations.
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Trade secrets
The protection of trade secrets is essential to foster innovation and promote economic growth. Companies must take preventive measures to safeguard their trade secrets against theft and misappropriation. This includes implementing non-disclosure agreements (NDAs) to prevent employees and business partners from disclosing confidential information.
In the United States, the Defend Trade Secrets Act of 2016 (DTSA) provides a legal framework for protecting trade secrets. It amended the Economic Espionage Act, establishing a private civil cause of action for the misappropriation of trade secrets. The DTSA allows trade secret owners to seek redress through the courts, which can order the misappropriation to stop, protect the secret from public exposure, and, in extraordinary cases, order the seizure of the misappropriated information.
Additionally, companies should identify their critical trade secrets and implement access controls to restrict employee access to sensitive information. This "need-to-know" access principle ensures that employees only have access to the information necessary for their specific tasks, reducing the risk of unauthorized disclosure or theft.
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Personally identifiable information (PII)
PII is often shared with organizations and businesses to tailor products and services to the customer's needs and wants. However, the accumulation of PII by organizations also attracts the attention of cybercriminals, who may exploit this information for identity theft or other fraudulent activities. To protect against these threats, many organizations have implemented safeguards, such as encryption and restricted access, to control who can view and use PII. Additionally, website privacy policies and legislation, such as the General Data Protection Regulation (GDPR), have been put in place to limit the distribution and accessibility of PII.
Under the GDPR, the term "personal data" is defined broadly and includes any information related to an identified or identifiable natural person. This definition allows for additional processing of other attributes, such as quasi- or pseudo-identifiers, to identify an individual. The UK ICO (Information Commissioner's Office) and EU regulators have increased scrutiny around the misuse of explicit consent, emphasizing the importance of specific, granular, informed, freely given, and documented consent.
It is important to distinguish between personal data and special category data, formerly known as sensitive personal data. Special category data is a subset of personal data that requires extra protection due to its sensitive nature. This includes data revealing racial or ethnic origin, political opinions, religious or philosophical beliefs, and medical information. Organizations must identify a lawful basis for processing special category data and ensure they have additional justifications beyond those required for non-sensitive personal data.
Failure to properly handle PII and sensitive data can result in significant harm to individuals and organizations. This includes identity theft, reputational harm, and even criminal liability. Therefore, it is crucial for organizations to understand the distinction between personal data and sensitive data and to implement appropriate safeguards to protect this information from loss, misuse, and unauthorized access.
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Racial or ethnic origin
Personal data that reveals someone's racial or ethnic origin is considered sensitive information and is subject to specific processing conditions. This is outlined in Article 9 of the UK and EU General Data Protection Regulation (GDPR), which prohibits the processing of such data unless specific legal conditions are met. Organisations are required to protect this data, and failure to do so can result in fines, reputational harm, and even criminal liability.
Sensitive data, including racial or ethnic origin, falls under the category of "special categories" and is afforded extra protections. This means that organisations cannot process this data unless they can rely on a lawful basis under Article 6 and an additional condition under Article 9. For example, explicit consent from the data subject or processing is necessary for a "substantial" public interest.
It is important to note that individual member states can introduce further conditions or limitations for processing sensitive data. As such, organisations must understand the distinction between personal and sensitive data to ensure compliance with the GDPR. Regular audits should be conducted to identify what personal and sensitive data is being collected, and collection should be limited to only what is necessary.
When storing sensitive data, it should be kept separately from other personal data. If it is in paper format, it should be kept in a locked drawer or filing cabinet. Digitally, sensitive data should only be stored on laptops or portable devices if the file has been encrypted and/or pseudonymised. Pseudonymisation involves processing the data in a way that doesn't identify specific people but allows for re-identification by combining it with other securely stored information.
Overall, the handling of sensitive data related to racial or ethnic origin requires strict adherence to the GDPR and its associated regulations. Organisations must ensure they have the appropriate lawful basis and consent for processing such data and implement the necessary security measures to protect it.
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Frequently asked questions
Sensitive data is any information that must be kept safe and confidential. It is typically data that could cause harm if made public, such as data that impacts national security or personal information that could be used for identity theft.
Examples of sensitive data include personal information such as names, addresses, social security numbers, medical records, financial information, and health data. It can also include business data such as intellectual property, trade secrets, and financial data.
Protecting sensitive data is crucial to safeguarding individuals' privacy and preventing identity theft, fraud, or other forms of exploitation. Additionally, inadequate protection of sensitive data can lead to severe data breaches, causing harm to individuals and devastating organisations.
There are several ways to protect sensitive data, including utilising non-disclosure agreements (NDAs), practising the principle of least privilege, requiring data encryption, and using data anonymization techniques. Organisations should also comply with relevant regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).
Failure to properly protect sensitive data can result in financial loss, reputational damage, and legal consequences. Data breaches can also have severe impacts on individuals, such as identity theft, financial loss, and damage to personal relationships. Organisations that fail to comply with data protection regulations may face hefty fines and lawsuits.







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