Businesses frequently gather and keep a tonne of personally identifiable information (PII) on their clients and customers in the digital era. But keeping superfluous PII on hand can have severe consequences for organisations and people. Data breaches and cyberattacks are more likely, but there is also a chance that personal data will be misused or accessed without authorisation. Additionally, companies that keep superfluous PII in breach of privacy rules may be subject to legal repercussions. On the other hand, reducing the retention of PII can increase data security, safeguard people’s privacy, and foster confidence and trust. The hazards and advantages of keeping unneeded PII will be discussed in this blog. We will also cover how companies can reduce data collection and retention practices while abiding by Australian privacy laws.

Australian Privacy Laws

Personal data collection, use, disclosure, and preservation are governed by Australian privacy regulations. These regulations protect personal information in public and private sectors from misuse, unauthorised access, and disclosure. Personal information processing in Australia is governed by the Privacy Act 1988 (Cth). These principles govern the collection, use, disclosure, storage, and security of personal information. In addition, specific industries are covered under the Privacy Act and sector-specific privacy standards such as the Health Privacy Principles and the Privacy (Credit Reporting) Code. Individuals in Australia have the right to access, correct, and complain about privacy breaches to the Office of the Australian Information Commissioner (OAIC) under privacy legislation. Australian privacy laws safeguard individuals’ privacy and require corporations and organisations to handle personal data appropriately.

Business Risks

Businesses face significant risks when they keep unnecessary personally identifiable information (PII). Not only is the risk of data breaches and cyber-attacks increased, but there is also the possibility of misuse or unauthorised access to personal information. For example, suppose a company keeps more PII than is necessary. In that case, it increases the chances that employees or third parties will misuse or gain unauthorised access to this information. This could result in financial loss, reputational damage, and legal ramifications for the company. Furthermore, retaining unnecessary PII violating privacy laws can result in legal ramifications such as fines and penalties. Businesses can reduce these risks and protect their own interests and the privacy of their customers and clients by minimising the retention of unnecessary PII.

Business Benefits

Businesses can benefit from reducing the retention of PII.

• Improved data security and privacy protection for individuals.
• Reduce the risk of data breaches and cyber attacks
• Increase trust from customers because they will feel that their privacy is respected and protected.
• Reduce the risk of legal consequences and reputational damage

Steps Businesses’ can take

There are measures that companies can take to reduce the amount of unnecessary PII that they store.

• Carry out an investigation into the procedures currently used for collecting and storing data.
• Locate and remove any unnecessary personally identifiable information.
• Establish stringent safeguards and access policies for the remaining personally identifiable information.
• Review data retention practises to ensure compliance with privacy laws and update them regularly.

Conclusion

Keeping unnecessary personally identifiable information (PII) on file can put businesses at serious risk. These risks include a greater likelihood of cyberattacks and data breaches, personal data being misused or accessed without authorisation, and the possibility that privacy laws will be violated, resulting in legal ramifications. On the other hand, reducing the retention of PII can have several advantages, such as better data security and privacy protection, increased customer and client trust, and a decreased risk of legal repercussions and reputational harm. Businesses can ensure that they are complying with privacy laws and protecting their customers’ interests by conducting routine reviews of their data collection and retention practices and implementing strict controls and access policies for personal information. Last but not least, it is in the best interests of businesses to safeguard their own interests and reputation to prioritise data minimisation and compliance with privacy laws.

Author | Chris Haigh | Chief Information Security Officer, Mercury IT