Data security is a crucial aspect of any business that handles personal data. Anytime someone makes a payment or sends you their name and email address, you’re collecting personal data.
Data breaches, cyberattacks, identity theft, and privacy violations can have serious consequences for both businesses and consumers. One of the consequences is penalties imposed by one or more data protection regulations. For example, the Personal Information Protection and Electronic Documents Act (PIPEDA) has a detailed enforcement process. The inability to protect personal data can result in any number of penalties.
It is important to stay updated on the latest trends and challenges that shape the data security landscape in 2024 so you can reduce risk to your business. Here are some of the key trends to watch out for:
One of the major drivers of data security is the increasing regulation of data protection by governments around the world. The EU’s General Data Protection Regulation (GDPR) is one of the most comprehensive and stringent data protection laws globally, and it has been enforced with hefty fines for companies that violate its provisions. The GDPR applies not only to EU-based companies but also to any company that handles the data of EU citizens, regardless of where they operate.
Beyond PIPEDA, the Canadian government has proposed the Digital Charter Implementation Act, 2022. This rule would modernize the framework for the protection of personal information in the private sector, as well as introduce additional rules related to AI deployment.
These laws aim to give consumers more control over their personal data and impose obligations on businesses to protect and process data in a lawful, transparent, and accountable manner. Businesses that fail to comply with these regulations can face significant reputational damage, legal liability, and financial penalties.
Another trend that has emerged in the data security domain is the increased focus on children’s privacy. Children are particularly vulnerable to online risks and their data can have long-term implications for their future opportunities and well-being. Therefore, it is essential to protect children’s data and ensure that they have a safe and positive online experience.
Several legislative measures have been introduced or proposed to address children’s privacy issues. It’s important for businesses that may interact with children to be aware of evolving requirements and how to properly protect any data collected about them.
Artificial intelligence (AI) is a powerful technology that has many applications and benefits for businesses and society. However, AI also poses significant challenges and risks for data security. AI relies on large amounts of data, including personal data, to function and learn. Therefore, it is important to ensure that AI systems are designed and deployed responsibly and ethically that respect human rights and values.
AI policy and governance is an emerging field that aims to address these challenges and risks by developing frameworks, standards, guidelines, and best practices for AI development and use. In early 2023, as AI gained widespread popularity, governments worldwide were apprehensive about its effects on data privacy and the lack of comprehensive regulations. Since then, several initiatives have been launched or proposed to establish AI policy and governance at various levels.
Another trend that is shaping data security in 2024 is the rethinking of business models in response to privacy legislation. Many businesses rely on data-driven business models that involve collecting, analyzing, and monetizing personal data, such as targeted advertising, personalization, and recommendation systems.
However, these business models are increasingly challenged by privacy legislation that limits the collection and use of personal data, as well as by consumer preferences that favor more privacy and control over their data.
As a result, businesses are exploring alternative business models that are more privacy-friendly. For example:
The final trend that is influencing data security in 2024 is the growing awareness of privacy rights among consumers. Consumers are becoming more informed and empowered about their data protection rights and options, thanks to the increased availability of information, education, and tools. Consumers are also becoming more concerned and vigilant about the potential risks and harms of data breaches, cyberattacks, identity theft, and privacy violations.
51% of surveyed Canadians rate their knowledge about their privacy rights as good or very good.
As a result, consumers are demanding more from businesses in terms of data security and privacy. Consumers are expecting businesses to comply with privacy regulations, and are also exercising their rights to access, correct, delete, or port their data, as well as to opt out of data collection or processing activities that they do not agree with.
Are you confident that your current data security protections can hold up to increased regulation and consumer scrutiny? See where you stand with an assessment of your current data handling and protection processes.
Contact us today to schedule a free consultation! Call 705-222-8324 or reach out online.