Different Types of Sensitive Data: What Businesses Must Protect
Businesses store vast amounts of information about customers, employees, partners, and internal operations. However, not all companies are equally diligent about securing this data. A recent survey found that 35% of customers don’t believe businesses protect their sensitive data adequately, and 45% would avoid companies that have experienced a cyberattack or data breach.
Without thorough sensitive data discovery, organizations may have unrecognized vulnerabilities. A robust sensitive data discovery tool helps businesses discover, migrate, and govern unstructured and structured data securely.
In this article, we’ll explain what sensitive data is, the types that require protection, and best practices to safeguard it.
What Is Sensitive Data?
Sensitive data is any information a business keeps that should only be accessed by authorized personnel. This can include information that identifies an individual—like payment details or birthdates—or confidential business information.
Businesses typically organize sensitive data in two ways:
Structured data: Predefined and formatted data stored in databases, such as names, addresses, credit card numbers, and dates. Structured data is easier to organize, search, and protect.
Unstructured data: Data in its original form without predefined formatting, such as emails, resumes, social media posts, presentations, chats, and IoT sensor data. Unstructured data is harder to manage and often contains hidden risks.
Sensitive data can also be categorized by risk level:
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High-risk: Data that could be used to steal identities or intellectual property.
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Restricted: Data regulated by federal or state law, where unauthorized disclosure is prohibited.
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Confidential: Internal data protected by the organization, even if not legally regulated.
Protecting sensitive data requires strong security measures, including encryption, access controls, and password protection.
Five Types of Sensitive Data Every Business Should Protect
Businesses handle sensitive data in many areas—from customer information to trade secrets. Some data, particularly unstructured data, is harder to secure but poses the highest risk. The five main types of sensitive data include:
1. Personal and Private Customer Data
Any information that can identify an individual falls under personal and private data. Protecting this data is critical to maintain trust. Examples include:
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Protected health information (PHI)
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Education records
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Sensitive personal data like race, ethnicity, sexual orientation, genetic or biometric data
Failure to protect this data can lead to identity theft, discrimination, or other harms. U.S. laws protecting personal data include:
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HIPAA (Health Insurance Portability and Accountability Act)
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FERPA (Family Educational Rights and Privacy Act)
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GLBA (Gramm-Leach-Bliley Act)
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COPPA (Children’s Online Privacy Protection Act)
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FTC Act (Federal Trade Commission Act)
2. Employee Data
Employee information must also be safeguarded. This can include:
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Authentication credentials (usernames, passwords, keys)
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Personal communications and social media posts
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Financial information
Compromised employee data can expose both the business and its customers to security risks.
3. Financial Data
Financial data includes organizational and personal transaction information, such as:
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Account details
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Payment records
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Audits and reports
Securing financial data is essential to prevent fraud and maintain regulatory compliance.
4. Business Data
Confidential business information includes:
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Intellectual property and trade secrets
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Client lists and investment details
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Strategic plans and merger information
If leaked, this data can harm a company’s competitive advantage.
5. Operational Data
Operational data supports day-to-day business functions, including:
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Product specifications
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Market research and inventories
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Contracts with suppliers and partners
Protecting operational data safeguards the business, customers, and partners from operational disruptions.
Key Takeaways: What Should Be Protected at All Times
While all data deserves some level of security, certain types—especially personal and unstructured data—require heightened protection. Unstructured data often resides in desktops, cloud storage, or shared drives, making it vulnerable. Prioritizing sensitive data security not only prevents breaches but also builds customer trust and ensures compliance with privacy laws.
Protect Your Sensitive Data with DryvIQ
DryvIQ helps businesses protect sensitive data quickly and accurately. By discovering unstructured data and identifying hidden vulnerabilities, DryvIQ prevents breaches, protects corporate reputation, and reduces compliance risk. With tools for data discovery, migration, and policy automation, your sensitive information receives next-level protection.
Try a DryvIQ demo today to see how your organization can safeguard its sensitive data.
