The difference between data privacy and information security: the most important features

Increasing cyber risks require more protection

Cloud-based systems, mobile working and increasing networking create new opportunities - but also new risks. It is becoming increasingly important for companies to protect their data and information effectively.

This is also shown by the current report "The state of IT security in Germany in 2024" by the BSI (Federal Office for Information Security): The threat situation from cyber attacks is constantly increasing. For example, a single cyberattack on a municipal IT service provider in 2023 paralyzed the digital infrastructure of 72 municipalities - affecting around 20,000 workplaces and thus important services for around 1.7 million citizens. 

At the same time, legal requirements such as the GDPRdata privacy) are increasing the pressure on companies to protect personal data. A systematic approach to data privacy and information security is therefore essential.

What is the difference between data privacy and information security?

At first glance, data privacy and information security appear to overlap - and in fact the two areas work hand in hand. Nevertheless, they have different focuses and objectives. While information security protects all business information and data, data privacy focuses specifically on personal data.

Information security: protection of all business information and data

Information security refers to the sum of all measures taken to protect a company's information, for example:

• Trade secrets and research data
• Technical and organizational know-how
• Contracts and business documents
• IT systems and technical infrastructure
• Processes and communication channels

The three pillars of information security

‍Threeelements form the basis of good information security, they are also known as the "CIA triad": Confidentiality, Integrity and Availability.‍

Confidentiality (Confidentiality)‍

Information must only be accessible to authorized persons. The following measures are in place to prevent industrial espionage and data theft:

• Encryption of sensitive data
• Secure authentication of users
• Role-based access concepts

Integrity

‍The integrity and correctness of data must be guaranteed. Protective measures include:

• Digital signatures for security
• Logging of changes
• Regular backups (security copies) and checksums (digital fingerprints to detect data manipulation)

This enables companies to prevent undetected manipulation.

Availability

‍Systems and data must be usable on demand. Companies achieve this through:

• Redundant systems and data storage
• Emergency concepts and business continuity management (operational continuity management)
• an efficient IT infrastructure

data privacy: focus on personal data

As the name suggests, data privacy focuses exclusively on the protection of personal data. This includes all information that can be assigned to a natural person:

• personal identification features (name, date of birth, address)
• Contact and communication data (e-mail, telephone)
• Online identifiers (IP address, cookie ID)
• Financial data (account number, credit card details)
• special categories such as health data

How data privacy and information security work together

Despite some differences, information security and data privacy complement each other in practice: data privacy defines the legal requirements for personal data, while information security provides the technical and organizational measures for implementation.

Examples of synergetic measures:

• Encrypted e-mails protect both personal data and confidential business communication.
• Access control systems secure customer data and sensitive company information at the same time.
• Backup strategies ensure the availability of both personal and business-critical data.

Legal basis at a glance

Rules create security - this applies in particular to the handling of data and information. Three important sets of rules provide you with the necessary orientation and help to systematically minimize risks.

GDPR as the foundation of data protection

The EU-wide data privacy Regulation (GDPR) has had a significant impact on the business world since 2018 - and for good reason. It clearly and unambiguously regulates how your company must handle personal data:

• You always need a legal basis or consent for data processing.
• The use of data must be based on the original purpose of collection.
• You must document all processing activities.
• In the event of a data breach, act quickly and report it.
• From a certain size, your company needs a data protection officer.

ISO 27001 makes information security measurable

What the GDPR is to data privacy , ISO 27001 is to information security. This standard shows you how to set up an effective information security management system (ISMS):

• Systematically assess your risks.
• Train your employees regularly.
• Check the effectiveness of your measures.
• Improve your system continuously.
• Document your safety guidelines.

With ISO 27001 certification, you prove to your stakeholders that information is safe with you.

ISO 27701 builds the bridge

Why double the work? ISO 27701 combines data privacy and information security. It expands your ISMS to include a data privacy(Privacy Information Management System, PIMS) and offers clear advantages:

• They harmonize all measures for data privacy and information security in one system.
• You save valuable time thanks to optimally coordinated processes.
• You can prove compliance with the GDPR requirements at any time.
• They increase efficiency by merging previously separate processes.
• They create transparency for employees, customers and business partners.

Cyberattacks & reputational damage: the risks for companies

Failure to implement data privacy and information security can have far-reaching consequences for companies. It is not just about financial losses, but also about the trust of customers and partners.

When data breaches become expensive

A breach of the GDPR can cost you up to 20 million euros or 4% of your annual global turnover. But the immediate fines are just the beginning:

• customers can claim compensation for the misuse of their data.
• Mandatory reporting to supervisory authorities ties up time and resources.
• Those responsible in the company must inform those affected individually about the incident.
• Damage to image and loss of trust often last for years.
• business partners rethink existing contracts.

Information security threats are on the rise

As described at the beginning, the attack surfaces for cyber criminals are growing due to increasing digitalization. Possible scenarios:

Cyber attacks paralyze systems

Ransomware attacks (blackmail software) encrypt your data and blackmail you with the threat of destroying it. The consequences:

• Failure of communication systems
• Production downtime due to blocked machines
• No access to important customer and company data
• Standstill in order processing

Data leaks due to human error

‍Oftenan incorrectly addressed e-mail is enough:

• Confidential information ends up with unauthorized persons.
• Personal data is disclosed unintentionally.
• Trade secrets are leaked to the competition.

Targeted industrial espionage does double damage

‍Competingcompanies and other players show a systematic interest in confidential information:

• Loss of research results and innovations
• Outflow of technical know-how
• Endangering the market position

Social engineering as an underestimated danger

‍Attackersmanipulate your employees:

• Phishing e-mails (fraudulent e-mails) steal access data.
• Falsified invoices trigger payments.
• Alleged superiors order data transfers.

System failures cost time and money

‍Technicaldisruptions hit your company unprepared:

• Production stops and delivery delays
• Limited ability of employees to act
• Costs for emergency measures and recovery
• Reputational damage to customers and other stakeholders

People as a decisive factor

Security is a joint task. Although the human element plays an important role in security incidents, this is usually not due to intent or malice. Rather, it is the task of companies to create the right framework conditions:

• Clear guidelines provide orientation in everyday working life.
• Technical systems support safe working.
• Feedback culture encourages people to address uncertainties.
• A positive error culture promotes learning from incidents.
• Managers consistently exemplify data privacy and information security.

Only when all levels work together can sustainable safety awareness be created within the company. Practical training plays a key role here - it strengthens employees' skills and creates the basis for a successful security strategy.

Professional training: The Compliance College

With the Compliance College , the Haufe Akademie A complete digital solution to professionally train your employees while simplifying your processes. Here you'll find all important training topics on one platform:

• Compliance 
• Privacy notice 
• IT security
• Occupational safety

Practical expertise meets modern learning technology

Our training courses developed by experts combine technical depth with innovative didactics:

• Adaptive e-learning adapts to the individual level of knowledge.
• Interactive formats such as simulations and gamification ensure varied learning.
• Practical case studies enable a direct transfer of knowledge.
• Multilingual content (up to 12 languages) also reaches international teams.

Security and efficiency for your company

The Compliance College is a complete digital solution that creates process security:

• Automated reporting fulfills all documentation requirements.
• Legally compliant evidence guarantees audit security.
• Integratable corporate guidelines create commitment.
• Resource-saving processes minimize the time required.
• Personal advice supports implementation.

Conclusion: data privacy and information security - two sides of the same coin

data privacy and information security pursue different goals. data privacy focuses on people and their personal data. Information security, on the other hand, ensures the integrity of all business information and data.

In practice, both areas complement each other and together form the foundation for a trustworthy and secure digital economy. The key to success lies in the continuous training of employees - because only those who understand the differences and correlations can effectively implement both areas in day-to-day business.