Imagine trusting a brand that cannot protect your personal details? It is the worst kind of nightmare that nobody wants to experience in their waking hours. Yet studies show alarming facts. In 2007, the University of Maryland published a study revealing that a computer is hacked every 39 seconds. Sadly, this figure is still cited by cybersecurity experts, underscoring the persistent vulnerability of personally identifiable information (PII). If you are wondering what PII is, it refers to the personal information you share when shopping online, signing up for emails, or using social media. It includes your name, phone number, address, or even fingerprints.

While the world advocates for a complete digital movement, the lurking threats to PII are a decisive factor in why businesses are steadily moving toward first-party data tracking. Businesses need PII to deliver personalized experiences, which is something that end users also want. We do like a customized experience on our favourite app, but it also comes with the potential threat of being hacked into, misused, and falling prey to business errors.

In this article, we will discuss everything about PII, how to handle it, how data privacy laws are enabling security, and more.

What is PII?

Now that you have a context, let’s clearly define what is PII.

Personally Identifiable Information (PII) refers to any data that can identify you as an individual.

Different regulations describe it in slightly different ways.

• NIST (U.S. National Institute of Standards and Technology) defines PII as information that can trace or distinguish a person’s identity.
• GDPR (EU’s General Data Protection Regulation) goes broader. It covers any data that can directly or indirectly identify an individual, including online identifiers such as cookies or device IDs.
• CCPA (California Consumer Privacy Act) focuses on information that relates to or could reasonably be linked to a consumer or household.

This variation matters. While NIST and CCPA emphasize direct identifiers, the GDPR includes digital footprints that may seem harmless but can still be tied back to you.

How is PII different from general data?

General or anonymous data cannot point to a single person—for example, “30% of customers prefer blue shoes.”
PII, on the other hand, makes that data personal—like knowing you prefer blue shoes, because of your name, email, or purchase history.

Basic PII includes names, phone numbers, addresses, and email IDs. Advanced PII goes further, including IP addresses, biometric data, passport numbers, and financial records. Even behavioral identifiers, such as browsing habits, fall under PII in some regions.

And this is where global perspectives come into play.

In the U.S., laws often treat PII as concrete identifiers such as SSNs or driver’s licenses. The GDPR in the EU treats even indirect identifiers, such as cookie IDs, as PII. In the APAC region, definitions vary, but many countries are strengthening their privacy laws in line with global standards.

These differences aren’t just academic; they have real consequences. The Facebook–Cambridge Analytica scandal is a prime example. Facebook collected and shared user identifiers that initially appeared harmless. However, under the GDPR’s broader view, those online identifiers were considered PII. When misused for political targeting, they exposed how easily personal data can be weaponized. While in the end, Meta settled the case for $725 million, the company described it as “revamping” its approach to data privacy.

This is one reason why businesses must understand PII beyond their local rules. What appears to be simple marketing data in one country may be a regulated identifier in another.

Types of PII and Why It Matters?

Not all PII carries the same level of importance. Some identifiers create a higher risk if exposed. There are two types of PII: Sensitive and Non-sensitive PII.

Sensitive PII

In September 2017. Equifax, one of the largest U.S. credit bureaus, announced a data breach. Personal information of 147 million people was exposed, with the company agreeing to a global settlement with the Federal Trade Commission, the Consumer Financial Protection Bureau, and 50 U.S. states and territories. The settlement amount cumulated to $425 million to help people affected by the breach.

Because SSNs are permanent identifiers, victims couldn’t simply “reset” their data the way you can reset a password. This made them vulnerable to years of identity theft and fraud, leading to Equifax facing billions in lawsuits and fines, and its reputation being permanently damaged.

Lesson: Sensitive PII requires the strictest safeguards, such as encryption, limited access, and secure storage, because once exposed, it cannot be undone.

Sensitive PII is information that can directly identify you and cause significant harm if exposed. This includes Social Security numbers, passport details, driver’s licenses, credit card numbers, and biometrics.

Non-sensitive PII

In 2006, Netflix released an “anonymous” dataset containing 100 million anonymous movie ratings for a competition. Netflix announced Cinematch and urged experts worldwide and communities to develop a system that could outperform their recommendation system by 10% in recommending movies and shows to users. While the competition ultimately saw the mega winner after one year, this also prompted researchers to re-examine the anonymous data.

According to the cyber experts, they could re-identify specific individuals in the Netflix dataset. They achieved this by matching patterns, such as rating timestamps and movie preferences, with public IMDb reviews. Although no harm was done, and Netflix tightened its data-sharing policies, this remains a case of non-sensitive PII that can fall under the radar if hackers know how to correlate it with external data.

Lesson: The danger lies in correlation. When multiple “harmless” data points are combined, they can still uniquely identify someone.

Non-sensitive PII is data that, on its own, doesn’t reveal much like names, gender, or zip codes. Businesses often collect this for marketing or personalization.

Sensitive PII (such as SSNs) is a direct bull’s-eye for hackers. Exposure leads to immediate identity theft. On the other hand, non-sensitive PII (such as movie ratings or zip codes) may appear harmless, but when pieced together, they can still reveal individuals’ identities.

This is why privacy laws like GDPR don’t limit protection to just obvious identifiers. GDPR treats even “indirect identifiers,” such as online IDs or behavioral data, as personal data because of this correlation risk.

How Businesses Collect PII?

Trying to protect something you don’t know is like shooting arrows in the dark. The first step in handling PII is to map every user touchpoint where your business will/can gather personal data.

1. Digital touchpoints

Most PII collection happens online. Website forms capture names, emails, and phone numbers. Checkout flows record billing addresses and payment details. CRMs and marketing automation platforms store this data for campaigns and personalization. Even customer support logs often contain sensitive information shared in tickets or chat transcripts.

2. Tracking and analytics

Beyond direct forms, tracking technologies also quietly collect PII. Third-party cookies once followed users across sites, but with their decline, businesses now rely on first-party data, such as login IDs, email-based tracking, or customer accounts. Pixels and analytics scripts may also capture IP addresses, device IDs, and behavioral patterns that constitute PII under the GDPR.

3. Offline Sources

Collection doesn’t stop online. Retail loyalty programs, trade shows, or event sign-ups also gather customer names, contact details, and purchase preferences. When integrated back into a digital CRM, this offline data becomes part of your PII ecosystem.

Encryption and access controls are non-negotiable, even if data collection is critical for business operations. Mapping all touchpoints ensures you know where PII lives, and securing them prevents one vulnerable system from putting your entire business at risk.

Ofcourse, it is easier said than done. For instance, Marriott International, a renowned hospitality brand, collected highly sensitive data, including passport numbers, payment card details, and addresses, of over 500 million guests. However, much of this information was stored in an unencrypted format. When attackers infiltrated the system, they gained access to a goldmine of sensitive PII.

The Marriott breach went undetected for four years, amplifying the damage.

Once Marriott discovered the breach, it publicly disclosed the incident, offered one year of free credit monitoring and identity theft protection to affected customers, and enhanced its encryption and monitoring practices. Regulators, however, ruled that Marriott had failed to adequately secure PII, leading to a £18.4 million (~$23.8M) fine from the UK ICO in 2020, alongside lawsuits and reputational damage. The case underlined how storing unencrypted sensitive PII without continuous monitoring can allow attackers to operate unnoticed for years, creating financial, legal, and trust crises for a brand.

This is a classic example of why businesses should understand the weight of collecting PII and why security is so essential. If businesses don’t encrypt or actively monitor such data, breaches can go undetected for years, amplifying the damage and fines.

Why Securing PII is Essential for Businesses?

Mishandling PII is a serious offense and can be costly for businesses. It is not only about regulatory fines. Businesses face financial downfall, struggle to survive, and lose customer trust while trying to rebuild their lost reputation. It is a lot for a business of any stature to handle. In fact, the 2025 data breach research report by IBM states that the average cost of a data breach for a business is approximately $4.44 million. It included detection, response, lost revenue, and legal expenses. The sad part is, this figure has only risen year after year.

When Equifax announced a $700 million settlement with regulators and consumers, the story did not end there. While a million Americans were left at long-term risk of identity threat, the brand suffered years of reputational damage, with trust in the brand severely eroded.

Securing PII is not optional. Sensitive information like SSNs, passports, or credit card numbers requires strong encryption, limited access, and proactive monitoring. Non-sensitive PII, like addresses or demographic details, must also be protected because attackers can combine them to re-identify individuals.

Businesses that treat PII security as a compliance checkbox put themselves at risk of becoming the next Equifax, paying millions in fines and losing customer trust that can take decades to rebuild, or worse, never recover.

State of PII in the Cookiesless Era

Third-party cookies are almost declared dead. Brands have adjusted to the idea of first-party tracking. All sounds well until you realize that the first party data is PII. Email addresses, phone numbers, loyalty IDs, and online identifiers, such as IP addresses, are now at the center of customer tracking and attribution. Under the GDPR, even these online identifiers are considered personal data.

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We already know what happened in the Facebook-Cambridge Analytica Scandal. Such identifiers can be misused in the same way that millions of Facebook profiles were harvested without consent and used for political micro-targeting. It is obvious why it sparked global outrage and record regulatory scrutiny. What Meta termed as “just an online activity data” was actually a highly personal data breach when correlated and exploited.

The key fact is that cookieless tracking cannot come at the cost of mishandling PII. Every identifier, whether an email address or device ID, must be collected with consent, stored in an encrypted format, and used with transparency and accountability. Brands that are embracing privacy-first personalizations are the ones that are winning customer trust, which will go a long way in building brand value. The others will continue to risk fines, lawsuits, and reputational collapse unless otherwise.

Let’s look at the steps to securing PII below.

How to Secure PII – 8 Easy Steps for Businesses

The Marriott Breach incident is an eye-opener on how data mishandling can go undetected, highlighting the dangers of overlooked systems. Securing PII isn’t a one-time task, but rather an ongoing task. Here is our recommended 8-step guide on how to secure PII.

1. Map all touchpoints

Begin by identifying all locations where you collect or store PII, both online and offline. Website forms, CRM systems, checkout flows, customer support interactions, loyalty programs, and event registrations are all potential sources of data. Without mapping these touchpoints, you can’t secure what you don’t know exists.

2. Collect only what is necessary

Practice data minimization. Ask yourself: Do you really need this PII to serve your customers? Limiting data reduces your risk in the event of a breach and helps you comply with privacy regulations, such as GDPR and CCPA.

3. Encrypt sensitive data

Encryption converts PII into unreadable code that can only be accessed with the correct key. This is particularly critical for sensitive PII, such as Social Security numbers, passport numbers, and payment card data.

4. Implement role-based access controls

Restrict who can view or manipulate PII within your organization. Not every employee needs full access. Limiting exposure reduces insider threats and accidental leaks.

5. Obtain explicit consent

Ensure users knowingly consent to data collection and processing. Utilize consent management platforms (CMPs) to monitor and track permissions. GDPR and CCPA require explicit opt-ins for many types of PII.

6. Regularly audit third-party vendors

Any vendor handling your PII can become a weak link. Conduct audits and ensure contracts enforce proper security measures. Many breaches occur via third-party systems, as attackers often exploit less secure vendors.

7. Monitor and respond

Continuous monitoring enables the early detection of anomalies or breaches. Have an incident response plan ready to contain damage, notify affected parties, and comply with regulatory reporting requirements.

8. Educate employees

Humans are often the weakest link. Train employees to recognize phishing, social engineering, and careless handling of PII. Awareness is a critical layer of defense.

Businesses that systematically map, encrypt, and monitor data not only comply with regulations but also gain a competitive edge in a privacy-conscious world.

Practices for Individuals – 6 Quick To-dos

Just as businesses have a responsibility to secure PII, individuals play a crucial role in protecting their own personal information. Simple actions can dramatically reduce risk and give you more control over your data.

1. Limit Oversharing Online

Think twice before posting sensitive details on social media or public forums. Birthdates, home addresses, and travel plans may seem harmless, but in combination, they can be used to identify you.

2. Use Strong Authentication

Always enable two-factor authentication (2FA) where possible. Even if a password is stolen, 2FA provides an extra layer of protection for your accounts.

3. Manage Cookie and Privacy Settings

When visiting websites or apps, review cookie preferences and opt out of unnecessary tracking. This reduces the amount of first-party PII collected, helping to maintain your privacy.

4. Monitor Your Financial and Online Accounts

Regularly review your credit reports, bank statements, and online accounts for any unusual activity. Breaches like Equifax show how quickly attackers can exploit exposed PII, so early detection is key.

5. Be Cautious with Third-Party Apps

Only share personal data with trusted apps or services. Read privacy policies to understand how your PII is collected, stored, and shared.

6. Use Password Managers

Password managers generate strong, unique passwords for every account, thereby reducing the risk of credential reuse—a common entry point for attackers.

Protecting PII isn’t just a business responsibility. Limit exposure, monitor accounts, and utilize security tools to protect your information. Do these to reduce the risk of identity theft, fraud, and data misuse. Individuals who follow these practices complement the efforts of businesses, creating a safer digital ecosystem for everyone.

Concluding Thoughts

PII is a critical business asset. Every piece of personal information carries value and risk. As more brands adopt first-party tracking, the importance of securing PII becomes increasingly crucial. Consumers are sharing not just their personal information, but they are also investing trust that will always be at the crux of every user-to-brand relationship building.

How a business handles user data is essential, as it directly impacts how the brand’s reputation is fostered. Similarly, individual users must pay heed to what they are consenting to and how much data is being shared.

If you are a business looking to build a secure, privacy-first system but are confused where to start, DM us right away. We have the right solution ready to deploy that complies with all global regulations and brings expert hands to the table for you. At ScaleX, we transform PII from a liability to a strategic asset. Want to see how? Connect with us now.

Till then, stay safe.