Digital Privacy: What Is Its Importance and What Are the Risks of Data Exposure for Companies?

In an era marked by digital transformations, sharing data in the virtual environment has become an increasingly common practice. In this context, digital privacy is crucial for both individuals and companies, given the rise in virtual scams and cyberattacks.

Even though it's a pressing issue in society, few people understand the true destinations of their personal information on the internet. According to a Cisco study, 76% of people are unaware of what companies do with their data.

The same study also found that 86% of people care about digital privacy and want more control over what is collected about them. This means people are interested in digital privacy and how their information is used but don’t know how to control it.

In this scenario, it is the responsibility of companies that collect personal data to ensure the digital privacy of everyone around them, including their partners, clients, employees, and any other individuals or institutions from whom the company has collected information.

Want to know more about this topic? Continue reading this article to explore what digital privacy is, what the laws say about it, the risks for companies, and how to avoid them.

What is Digital Privacy? Digital privacy is an essential right that everyone has to keep their data confidential, control the destination of their personal information, and manage how it is shared on the internet and other digital platforms.

The concept of digital privacy is quite broad, involving the protection of the privacy and identity of individuals and organizations in virtual environments, including personal data stored on computers, smartphones, applications, and other internet-connected devices.

Why is Digital Privacy Important for Companies? In a world where the volume of shared personal information in the virtual environment is ever-increasing, it's crucial to find ways to ensure that this information is not misused or exploited for malicious purposes, such as identity theft, financial fraud, or espionage.

In other words, digital privacy is fundamental for ensuring freedom of expression and the protection of human rights in the virtual environment. Additionally, there are other factors highlighting its importance:

• Strengthening Trust: Digital privacy demonstrates a commitment to the security of clients’, employees’, and partners’ information, thereby reinforcing trust between the parties involved.
• Protection of Confidential Data: Ensuring digital privacy helps protect sensitive information, such as financial data and personal information of clients and employees, from theft, fraud, and unauthorized access.
• Risk Reduction: Proper management of digital privacy can reduce risks such as data loss, downtime, support costs, and financial damages. This is because the company’s systems become more secure against potential threats.
• Social Responsibility: Protecting digital privacy can be seen as a social responsibility to which a company is committed, contributing to a safer digital environment and ensuring the protection of individuals’ privacy and data rights.
• Prevention of Cyberattacks: To effectively guarantee digital privacy, a company needs a strong cybersecurity system. Consequently, the company becomes less vulnerable to cyberattacks, data leaks, or breaches.

Know 10 Good Cybersecurity Practices Every Company Should Follow

• Compliance with Data Protection Laws: Generally, data protection laws aim to ensure citizens' digital privacy. Thus, ensuring digital privacy is a way to comply with regulatory laws and avoid fines and legal actions.

What Are the Risks of Data Exposure for Digital Privacy in Companies? As you’ve seen throughout the text, digital privacy is directly related to the security of internet users. Leaks, theft, data hijacking, or any misuse of data in the digital environment violate the principle of digital privacy.

In other words, by keeping their systems unprotected and failing to ensure transparency about data handling, companies are infringing on a fundamental right of their clients, employees, or partners.

This means that in cases of cyberattacks, in addition to the cybercriminals, the company is also responsible for the privacy breach, as it is the company’s duty to ensure the security of the data processed.

What Does LGPD Say About Digital Privacy? Since 2020, when the General Data Protection Law (LGPD) came into effect, there have been various changes in the business market concerning digital privacy, cybersecurity, and transparency of usage policies.

This law stipulates that digital privacy is a right that all individuals have in the virtual environment, and it is the responsibility of organizations that collect personal data to ensure that the collected data is protected and secure. Here’s what the law says:

• Art. 1º This Law deals with the processing of personal data, including in digital media, by natural or legal persons of public or private law, with the aim of protecting fundamental rights of freedom and privacy and the free development of the personality of natural persons.

How to Maintain Digital Privacy in Companies? If you’ve reached this point, you might have concluded that the main way to maintain digital privacy in companies is by investing in Information Security.

One is linked to the other; by strengthening systems against cyber threats, you will be ensuring digital privacy in the company. Protecting your systems also helps prevent potential leaks or theft of information that could infringe on the privacy rights of people who have shared their personal data with the company.

The Bug Bounty is one of the most effective ways to strengthen your systems and ensure digital privacy, as it functions as a reward program searching for vulnerabilities in companies. This way, it is possible to identify and correct system flaws proactively—avoiding potential damages caused by privacy breaches.

Interested in learning more about how Bug Bounty can help your company? Contact BugHunt!