What Is PII?

The amount of personal data collected by organizations has skyrocketed. Explore what Personally Identifiable Information (PII) is, why it’s important and how it should be managed.

In today’s interconnected digital world, organizations have become more data-driven than ever before. Businesses, governments and institutions rely heavily on digital platforms to serve, inform and communicate, leading to an exponential increase in the collection of personal data over the past decade. This growing data ecosystem makes it crucial to understand what Personally Identifiable Information (PII) is and how it should be managed.

Defining PII

At its core, Personally Identifiable Information (PII) refers to any data that can be used to identify a specific individual. This can range from direct identifiers like names or Social Security numbers to more indirect information such as IP addresses or location data, which can reveal identities when combined with other data points.

The National Institute of Standards and Technology (NIST) defines PII as:

“Any information about an individual maintained by an agency, including (1) any information that can be used to distinguish or trace an individual’s identity, such as name, social security number, date and place of birth, mother‘s maiden name, or biometric records; and (2) any other information that is linked or linkable to an individual, such as medical, educational, financial, and employment information.”

This definition highlights the wide range of data types that can constitute PII. While some data, such as names or addresses, are obvious identifiers, other forms like browsing history or geolocation may not seem immediately revealing. However, when combined with other information, they can be used to uniquely identify individuals.

This highlights how PII is often contextual—some information, like a birth year, may not be PII on its own but can become personally identifiable when paired with other data.

PII in Modern Applications

In our era of smartphones, cloud computing and constant internet connectivity, modern applications collect and process enormous amounts of PII. This data is used to offer personalized and efficient services. Some common examples include:

• Food delivery services: Name, contact info, delivery address, payment details, geolocation and order history.
• Ride-sharing apps: Name, contact info, payment details, real-time location and trip history.
• Health and fitness apps: Health metrics, personal details (age, weight, gender) and geolocation.
• Billing and payment platforms: Financial details, personal identification and contact information.
• Ecommerce platforms: Purchase history, shipping addresses and payment information.
• Social media platforms: Profile info, content interactions, facial recognition and behavioral data.

While these applications rely on PII to offer convenience and personalization, the sheer volume of data they collect also raises significant privacy concerns. Mishandling or mismanagement of PII can expose users to data breaches, identity theft and other security risks.

Global Regulations for Managing PII

To better safeguard individuals’ privacy, various laws and regulations govern the collection and use of PII. Some key regulations include:

• General Data Protection Regulation (GDPR): This European Union regulation requires explicit consent for data collection and provides individuals with the right to request data deletion.
• California Consumer Privacy Act (CCPA): Grants California residents rights over their personal data, including the ability to opt out of its sale.
• Health Insurance Portability and Accountability Act (HIPAA): In the United States, HIPAA helps protect patient health information from unauthorized disclosure.
• Personal Information Protection and Electronic Documents Act (PIPEDA): Canada’s privacy law regulates how private-sector organizations collect, use and disclose personal information.

Compliance with these regulations is mandatory. Organizations must implement the necessary technical and organizational measures to help safeguard PII, conduct regular audits and be transparent in how they handle personal data.

Best Practices in Managing PII

One of the most important principles in handling PII is data minimization. Organizations should only collect the data they absolutely need to fulfill their specific purpose. This approach reduces the amount of sensitive data being stored and, therefore, minimizes the potential impact of a data breach.

Encryption is another key practice in safeguarding PII. Data should be encrypted when stored (at rest) and transferred over networks (in transit). This way, even if data is intercepted, it cannot be easily read by unauthorized parties.

Along with encryption, access control is vital. Organizations should limit access to PII strictly to individuals who need it to perform their roles, using role-based permissions and multi-factor authentication to further enhance security.

Regular audits of data-handling practices help companies check compliance with regulations and identify potential vulnerabilities. These audits should be accompanied by clear data retention policies. Retaining data for longer than necessary not only increases the risk of exposure but also might violate regulations like GDPR, which require organizations to delete data once it’s no longer needed.

Another essential component of PII management is transparency. Organizations should clearly inform individuals about how their data will be used, and consent should be explicitly obtained where necessary. Providing users with control over their data—including options to modify or delete it—demonstrates a commitment to privacy. In addition, organizations should have a detailed incident response plan in place to quickly address any breaches, notifying affected individuals and relevant authorities as required by law.

How Progress MOVEit Can Help

Managing PII securely often requires advanced tools. Because this data is regularly shared or moved as part of enterprise workflows (i.e., payroll, employee onboarding, etc.), these transfers demand a better solution than traditional file sharing. Progress MOVEit, a managed file transfer solution, offers robust encryption and centralized access control to help better protect sensitive data in motion and at rest. Add in the benefit of built-in automation features, and MOVEit can help organizations reduce human error while maintaining visibility and control over data movement.

Additionally, MOVEit helps organizations meet regulatory requirements, such as those in GDPR, HIPAA and PCI DSS, by generating detailed audit logs and tamper-evident records to help with compliance obligations. Whether on-premises or cloud-based, MOVEit provides flexibility to suit various organizational needs.

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Wrap-up

As the collection and use of Personally Identifiable Information (PII) continues to grow in today’s digital world, understanding and managing PII is crucial for privacy and regulatory compliance. By implementing strong data management practices, including data minimization, encryption and access control, organizations can better protect not only individuals but also themselves from the legal and financial consequences of data breaches. Proper PII management fosters trust and supports the longevity of a secure, data-driven digital ecosystem.

The information provided on this blog does not, and is not intended to, constitute legal advice. Any reader who needs legal advice should contact their counsel to obtain advice with respect to any particular legal matter. No reader, user or browser of this content should act or refrain from acting on the basis of information herein without first seeking legal advice from counsel in their relevant jurisdiction.