What are the advantages and disadvantages of pseudonymization?
While pseudonymization does seem like a great idea on the face of things, it offers a set of disadvantages as well as benefits. Understanding both aspects is vital if you’re thinking about choosing this method of de-identifying your data.
Some of the benefits you may encounter when implementing data pseudonymization are:
- Reducing Risks: Pseudonymization involves making PII harder to link to a specific individual. For this reason, you will likely increase the likelihood of compliance with data/privacy laws (e.g. GDPR in the EU/EEA). While lowering the risk of identity theft and other cybersecurity threats is a potential benefit, additional measures may be needed for comprehensive protection.
- Usable Data: Despite making personal information no longer identifiable, it’s still possible to use pseudonymized data in your research. As a result, you can continue improving your products and services based on what you learn.
- Can be Re-Identified: Another advantage of pseudonymization is that you can later make information identifiable if needed. This is different from other tactics, such as data anonymization. Due to this, you can delve deeper into your research, allowing for more thorough investigation and analysis.
Meanwhile, some of the associated disadvantages you’ll need to think about are:
- Not Entirely Foolproof: It’s easy to think that pseudonymization alone will solve all of your cybersecurity problems, but this is not the case. Just because you’ve pseudonymized data doesn’t mean it can’t fully be identified; this is where anonymization has an advantage.
- Decreased Usability: While you can still use pseudonymized data, this doesn’t mean that it’ll be as good as the original version in some cases. So, you’ll need to think carefully about what you need to use this information for.
- Implementation: You need technical expertise to successfully implement a pseudonymization policy, and the same goes for later re-identifying data if required. For this reason, you need to think carefully about whether this is the right approach; consider hiring someone with the necessary experience if so.
How can I implement data pseudonymization effectively?
To implement data pseudonymization, you should consider multiple aspects. Here is a rough framework you should consider following.
- Understanding: Before doing anything, make sure that you’re aware of the personal information processed in your business. You should also know how your data flows work and then determine the overall risk. Doing this first is vital for determining what needs to be anonymized in the first place.
- Choosing: Consider the different types of pseudonymization available and then pick the technique you deem to be appropriate for your specific needs. Look at your current infrastructure and consider whether you need to hire extra tools or expertise (e.g. secure storage and cryptographic tools). One example could be replacing customer names with randomly generated pseudonyms that still have other information you can use.
What are the future trends and challenges in data pseudonymization?
Given the rising demand for data privacy and security, pseudonymization has emerged as a key technique for organizations seeking to safeguard their data; it is advisable to consider its implementation within your organization. Trends are influenced by changing technologies, and one to consider is the impact of encryption algorithms.
You must balance security and usability, and for this reason, you should also think about encryption algorithms. It’s vital for sharing data, which you must do if you wish to work on your products and services. Algorithms are used in different industries, such as healthcare.
One thing to consider with encryption algorithms is their impact on re-identification. The industry should remain focused on creating or developing systems that offer the options for both de-identification and re-identification. Educating employees about this is equally essential, especially if they handle data.
Conclusion
Pseudonymization might not be the first thing you think about when starting a business, but it’s an important consideration if you have personally identifiable information (PII). It has several forms, and before choosing one, you need to consider the level of risk involved. You also want to build the right infrastructures to manage your pseudonymization strategy, as it’s important not to compromise effectiveness.
Strike a balance between data protection and usability; this is imperative because it will impact how you use information in your research. It’s also essential that you keep an eye out for changing trends and think about how to implement them in your own business.
It’s essential to weigh the effectiveness of pseudonymization against its potential drawbacks and explore alternative options that might better align with your specific needs. It’s also vital that you include it as one part of your security system and not the only aspect.
