An Overview Of Data Classification, By Veracity Desk

What Is Data Classification?
Data classification systematically categorizes information based on sensitivity and importance to determine its level of confidentiality. This process helps apply appropriate security and compliance measures to ensure each category receives proper protection. As a result, sensitive information is safeguarded while less critical data is allowed appropriate flexibility.

Why is Classifying Data Necessary?
Knowing how to classify data is critical given today’s advancing cyber threats. With over 422 million individuals affected by data compromises, including data breaches, leakage, and exposure in 2022, classifying your data is essential if you want to know how to secure it and prevent security incidents at your organization.

How to Classify Data
Determining specific data classification strategies depends on your industry and the type of data your organization collects, uses, stores, processes, and transmits. For healthcare organizations, this could be PHI such as patient names, dates of birth, Social Security numbers, medical data and histories, or prescription information. For financial services organizations, this could be CHD, PINs, credit scores, payment history, or loan information.

Regardless of the type of data, there are a few key considerations to make when classifying data, including:

What data does your organization collect from customers and vendors?
What data does your organization create?
What is the level of sensitivity of the data?
Who needs access to the data?

4 Data Classification Types
Depending on the sensitivity of the data an organization holds, there needs to be data classification levels to determine elements including who has access to that data and how long the data needs to be retained. Typically, there are four classifications for data: public, internal-only, confidential, and restricted. Let’s look at examples for each of those.

Public Data
This type of data is freely accessible to the public (i.e. all employees/company personnel). It can be freely used, reused, and redistributed without repercussions. An example might be first and last names, job descriptions, or press releases.

Internal-only Data
This type of data is strictly accessible to internal company personnel or internal employees who are granted access. This might include internal-only memos or other communications, business plans, etc.

Confidential Data
Access to confidential data requires specific authorization and/or clearance. Types of confidential data might include Social Security numbers, cardholder data, M&A documents, and more. Usually, confidential data is protected by laws like HIPAA and the PCI DSS.

Restricted Data
Restricted data includes data that, if compromised or accessed without authorization, which could lead to criminal charges and massive legal fines or cause irreparable damage to the company. Examples of restricted data might include proprietary information or research and data protected by state and federal regulations.

Common Data Classification Standards and Requirements
Many frameworks and legal regulations have specific requirements that encourage organizations to classify data. While this isn’t an exhaustive list of the requirements and laws, these are quite common. It should be noted that these requirements vary depending on the types of data your organization collects, uses, stores, processes, or transmits.

Reasons for Declassification:

1. National interest: Information no longer poses a threat to national security.
2. Historical significance: Documents provide valuable insights into past events.
3. Public interest: Disclosure promotes transparency, accountability.
4. Statutory requirements: Laws mandate declassification after a set period.
5. Administrative purposes: Declassification facilitates record-keeping, archiving.

Types of Declassified Information:

1. Historical documents (e.g., WWII records)
2. Intelligence reports (e.g., CIA, NSA)
3. Government memos (e.g., Pentagon Papers)
4. Scientific research (e.g., nuclear energy)
5. Diplomatic communications (e.g., embassy cables)

Benefits of Declassification:

1. Promotes transparency, accountability
2. Enhances historical understanding
3. Supports research, education
4. Fosters international cooperation
5. Reduces secrecy, promotes open government

Examples of Declassified Information:

1. The Pentagon Papers (1971)
2. CIA’s Stargate Project (2002)
3. NSA’s Snowden Revelations (2013)
4. JFK Assassination Records (2017)
5. CIA’s Bay of Pigs Documents (2016)

Declassification Process:

1. Review by originating agency
2. Interagency consultation
3. Approval by declassification authority
4. Redaction of sensitive information
5. Public release through various channels (e.g., National Archives)

Laws and Regulations:

1. Freedom of Information Act (FOIA)
2. Executive Order 13526 (Classified National Security Information)
3. Public Records Act
4. National Archives and Records Administration (NARA) regulations

Challenges and Controversies:

1. Balancing national security with transparency
2. Protecting sensitive information
3. Managing volume of classified documents
4. Ensuring accurate declassification
5. Addressing concerns of affected parties

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