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1 – Understanding Sensitive DataSensitive DataSensitive data is a term that includes identifiable data, but also extends toinformation that may be considered private, or to have societal and economicconsequences if improperly disclosed. It is also information that could causeharm to an organization if it is improperly disclosed. This type of data includespolitical opinions, religious beliefs, mental or physical condition, criminalrecord, financial status, intellectual property, organizational membership, codesand passwords that grant access to accounts, and information of nationalsecurity.According to the United Kingdom's Data Protection Act of 1998, Sensitive datais defined as:"... personal data consisting of information as to – a) the racial or ethnicorigin of the data subject, b) his political opinions, c) his religious beliefsor other beliefs of a similar nature, d) whether he is a member of a tradeunion ..., e) his physical or mental health or condition, f) his sexual life, g)the commission or alleged commission by him of any offence, or h) anyproceedings for any offence committed or alleged to have been committedby him, the disposal of such proceedings or the sentence of any court insuch proceeding."In the definition provided by the Data Protection Act, it is specific toinformation of an individual; but sensitive data spans beyond the scope of theindividual and includes businesses, organizations and nations. Data that isconsidered sensitive will always require additional efforts to protect it andprevent unauthorized disclosure.Implications of Data TheftOther motivating factors in determining data sensitivity include the propensityof being subject to identity theft, plus consideration of individual privacy, andof national security.Identity TheftIdentity theft is the process of obtaining a person's identity for the purpose ofcommitting fraudulent activities. In 1998, the United States Congress passedthe Identity Theft and Assumption Deterrence Act, which made identity theft afederal felony. The United States Federal Trade Commission reported that, inthe year 2007, over 1.2 billion dollars were lost as the result of identity theftand related fraudulent activities.21