In today’s digital society, personal data has surpassed gold and oil in value. This data, including names, email addresses, telephone numbers, bank details, and IDs, holds an industry value of about US$224 billion. Unlike traditional commodities, data now plays a pivotal role in business transactions.
The Dark Side of Data Collection
The Cambridge Analytica scandal, where the firm harvested data from over 87 million Facebook users without consent, exposed the risks of data misuse. This event highlighted the need for stricter data governance and privacy policies globally.
Keletso Mpisane, Head of MiWay Blink, comments on the issue. She emphasizes the global push for stringent data regulations after such incidents.
Data Privacy Laws and Regulations
The European Union pioneered modern data privacy with the GDPR in 2016. In Africa, 19 countries have implemented data protection laws, with six still drafting theirs. South Africa enacted the Protection of Personal Information Act (POPIA) in 2020 to safeguard personal data.
Business Use of Personal Data
Businesses leverage personal data to enhance customer service and experiences. As companies digitalize, they focus on meeting consumer expectations through digital platforms. However, questions arise about the true safety of consumer data.
The Limitations of Data Privacy Laws
Data privacy laws like POPIA hold organizations responsible for securing personal data. But these laws don’t guarantee absolute data security. Cybercriminals are increasingly skilled, posing threats to supposedly secure systems. Since October 2022, South Africa has seen over 500 data breach notifications.
The Financial Impact of Data Breaches
IBM’s latest report reveals that data breaches cost South African organizations R49.45 million on average in 2023. This cost has surged by 73% over eight years. Mpisane emphasizes the necessity for robust security protocols to safeguard customer data from various cyber threats.
Consumer Responsibility in Data Sharing
Mpisane also advises consumers to be vigilant about their data sharing habits. Since personal data is valuable, it’s crucial not to share it carelessly.
