The Importance of Knowing Where Your Sensitive Data Is Stored

For many businesses, knowing the exact location of their sensitive customer data, such as credit card details and personal information, can be a challenge.

AJ Thompson CCO, of Northdoor plc, says that organisations must ensure that personal information is used fairly and that data is deleted or securely destroyed once the purpose for which it was collected no longer applies. Those that have successfully implemented data security policies likely have a data discovery and data masking process in place, but a large number of businesses struggle to protect their sensitive data efficiently.

As data breaches become more frequent and costly, organisations are increasingly focused on securing their databases and safeguarding customer information. According to the 2024 IBM Cost of a Data Breach Report, the average cost of a data breach has risen to USD 4.88 million, a 10% increase from 2023. The most expensive breaches typically involve Personally Identifiable Information (PII), making data protection a top priority for businesses looking to avoid financial loss and reputational damage.

Growing Threats and Increased Regulatory Scrutiny

In addition to financial losses, businesses are facing escalating penalties under regulations like the General Data Protection Regulation (GDPR). Some of the largest GDPR fines issued in 2024 highlight the severe consequences organisations face when they fail to comply with data protection regulations. These fines also serve as a reminder that many companies are either unaware of or have chosen to disregard GDPR requirements, putting their businesses at risk.

Data protection officers (DPOs), compliance managers, and security professionals are now grappling with how to secure sensitive data while managing the risks of data breaches. This challenge is made more difficult by the exponential growth of data and the increasing complexity of cybersecurity threats. Many organisations struggle to get a full picture of where private data is stored, and breaches often expose PII that companies didn’t even know they possessed.

The rise of remote work and expanded ecosystems of partners and third-party vendors has added to this complexity. Organisations are using a wide variety of external services, mobile applications, and systems, which further increases the risk of data being compromised. To address these challenges, businesses need robust compliance processes to secure data across these platforms.

Data Masking as a Key Security Solution

Data masking has emerged as a crucial technique for protecting sensitive data, allowing businesses to operate efficiently while maintaining compliance with data security regulations. By using data masking, organisations can anonymise sensitive information, such as PII, payment card details (PCI-DSS), protected health information (PHI), and intellectual property (ITAR). This allows businesses to work with realistic data in non-production environments, such as development, testing, and user training, without risking exposure of real customer information.

Data masking ensures that sensitive information is replaced with fictitious data, which mirrors the characteristics of the original data but cannot be traced back to any individual. This is particularly useful in non-production settings where high-quality, realistic test data is required. Organisations can quickly generate obfuscated data sets to simulate real-world scenarios while maintaining privacy and compliance. This approach not only protects sensitive data but also streamlines processes, allowing businesses to innovate and work more efficiently.

Building Stronger Security Practices Through Compliance

While compliance is often seen as a regulatory requirement, it can also serve as a foundation for building stronger security practices. Protecting regulated data is a core aspect of compliance, but many organisations struggle to determine which data they need to protect in the first place. Implementing a comprehensive compliance framework helps businesses understand their data better, ensuring that sensitive information is not unnecessarily stored or processed.

Relying solely on periodic audits or point-in-time reviews can create a false sense of security. To truly safeguard sensitive information, organisations need to adopt an ongoing compliance strategy that continuously monitors and protects data. This approach can drive improvements in a company’s security posture, helping them to stay ahead of evolving risks and regulatory changes.

However, businesses must go beyond simply ticking boxes to meet compliance requirements. A holistic approach is essential, one that includes secure and automated data discovery and masking systems. These tools provide businesses with greater visibility into where their sensitive data is stored and help them ensure that appropriate security measures are in place to meet current and future regulations.

Ensuring Long-Term Data Protection

As data breaches continue to pose a significant threat to businesses, having the right tools and processes in place to secure sensitive information is critical. Data discovery and data masking systems play a central role in helping organisations meet regulatory requirements, protect customer information, and minimise the risk of costly breaches.

For those in charge of safeguarding sensitive data, implementing a secure and automated solution can provide peace of mind. With the right policies and tools, businesses can remain compliant with evolving regulations while also improving their overall security posture. By taking a proactive approach to data protection, companies can mitigate risks and safeguard their reputation in an increasingly challenging digital landscape.