Data Compliance

Data compliance identifies the laws, regulations, and standards that a company’s data activities. Compliance requires meeting requirements for the safe storage, legitimate use, and deletion of sensitive consumer data.

Comprehensive data compliance increases your company’s reputation for trust among customers and partners.  More importantly, it minimizes the risks of a data breach.

Data Regulations

Many regulations governing the collection, storage, use, and deletion of sensitive data are specific to businesses selected industries, such as healthcare or finance, or to firms operating in specific regions such as Europe.  U.S. government agencies must meet data standards set by the National Institute of Standards and Technology (NIST) but many private firms voluntarily follow the regulations to as best practices.

The most common data compliance regulations affecting organizations in the U.S. and overseas are:

  • Payment Card Industry Digital Security Standard (PCI DSS) protects sensitive consumer information during credit card and debit card transactions.
  • General Data Protection Regulation (GDPR) is the European Union’s set of laws designed to safeguard the privacy of EU residents.
  • California Consumer Privacy Act (CCPA) applies to companies that do business in California and guarantees residents the right to know how their private data is being used, and to prevent their data from being collected and shared.
  • Health Information Portability and Accountability Act (HIPAA) applies to electronic protected health information (PHI) and other sensitive patient data.
  • Federal Risk and Authorization Management Program (FedRAMP) gives federal agencies guidelines for evaluating cyber threats and assessing the risks they pose to sensitive data.
  • Federal Information Security Management Act (FISMA) defines the actions that federal agencies can take to improve the security of their data and information systems.

Several new and updated data regulations took effect in 2024.

  • PCI DSS version 4.0: 13 new requirements took effect on March 31, 2024.,
  • Federal Trade Commission (FTC) Safeguards Rule amendment: On May 13, 2024, a new rule took effect that requires financial institutions to notify the FTC of data breaches that affect at least 500 customers.
  • SEC breach disclosure rules: Smaller reporting companies must with a SEC rule, effective June 15, 2024, that requires more extensive reporting of cybersecurity incidents.
  • Florida, Oregon, Texas and Montana data privacy laws: New laws took effect in the states that set rules for handling the sensitive data of consumers residing in those states.
  • Washington My Health My Data (MHMD) Act: Took effect on March 31, 2024, for larger businesses and on June 20, 2024, for small businesses.

A solid compliance strategy does more than just ensure that your organization meets its fiduciary responsibility to protect the data it relies on for its day-to-day operation. Data compliance is now the key to building and maintaining a trustworthy relationship with your customers and business partners.

Data Compliance Challenges

One of the primary data compliance challenges stems from the inherent usefulness of the data your company is responsible for.  It would be simple to keep data safe, if you could just prevent everyone from accessing and using the data, but that is not viable.  Today’s businesses run on data.  While data is kept and processed in production systems, there are also many requirements to use data in non-production systems.  Often it these non-productive uses such as testing, where data breaches can occur.

Production data systems typically are the most secure systems in a company but often copies of production data are used in testing, data analysis and other activities where safeguards are not as rigorous as production systems.  It is not uncommon for a business to have dozens of copies of production data, which increases the risk of a data breach significantly.

Data masking can secure data for many non-production uses by hiding details about specific information. In many tasks such as testing and data analysis, the specific private information is not important. Simply put, data masking add value to data protection, ensuring compliance with data compliance standards.

Big Data adds a new challenge to data compliance.  The volume of data requires expensive specialized systems to store and process the data.  Legacy data masking procedures and tools are not effective masking big data, often having compatibility issues with big data storage formats and performance issues processing the large volume of data.

For companies involved in Artificial Intelligence (AI) training, data masking can assist in maintaining data compliance.  AI models trained on big data sets which contain private and sensitive information can end up exposing that data.  By masking the training data companies can eliminate the risk of private and sensitive data exposure.

Obfusware  Data Masking for Data Compliance

By masking regulated private and sensitive data in non-production systems, Obfusware can be an important component of a company data compliance strategy, especially if the company manages big data which contains private and sensitive data.  Obfusware’s versatile data masking algorithms are designed to mask private and regulated data while preserving important data characteristics such as data references and statistical significance.  This allows the masked data to be used for training, testing and data analysis where the complex data relationships are critical to achieving realistic and meaning results.

OBFUSWARE Features and Capabilities