15 Best API Security Practices to Keep Your Data Safe in 2024

Best API Security Practices for the Protection of Sensitive Data

Application Programming Interfaces (APIs) allow app developers to pull information from external sources. They simplify the coding process by giving developers access to a large amount of data they would otherwise be unable to access.

APIs benefit providers too. They create new revenue possibilities by making valuable data and services available, usually for a fee. Consumers are also winners. They benefit from innovative, feature-rich, interactive apps that provide many services all in one place.

But with all this personal information swirling around, how can companies stay data-compliant and protect data privacy? Read on to learn about the best API security practices.

Highlights

APIs are essential for modern app development but they may also pose huge security risks if they are not properly protected.
Data breaches can cause serious penalties under laws and regulations.
Most API security risks boil down to improperly set up access controls, mismanaged protocols, and a lack of dedicated security measures.
Proper API security can be ensured with the help of dedicated software.

Why Having a Data Security Strategy Matters

Faulty, hacked, or exposed APIs lie behind many major data breaches. These types of instances shine a light on sensitive personal data that is not for public consumption. The consequences for a company can be catastrophic.

Data laws and regulations mean there can be eye-watering fines for any breaches. However, not all data are the same, and the way you tackle API security will depend on the kind of data that gets transferred.

For example, when an API connects to a third-party application, an individual might want to limit some information about them. That might include tracking their location but not knowing about their favorite vacation destinations.

What Are the Most Common API Security Risks?

API security risks are vulnerabilities or weaknesses that can be exploited to compromise the integrity, availability, or confidentiality of an API and its data. Some of the most common API security risks include:

Broken Object-Level Authorization (BOLA): Failure to implement proper checks to ensure that users can only access the objects to which they have permission.
Broken User Authentication: Inadequate authentication mechanisms that allow attackers to assume legitimate users’ identities.
Excessive Data Exposure: Over-fetching of data where the API exposes more data than is needed for a particular function, potentially leading to data leaks.
Lack of Resources & Rate Limiting: Without proper rate limiting, APIs can be vulnerable to Denial-of-Service (DoS) or brute force attacks, where an attacker overwhelms the API with requests or attempts to guess credentials through repeated trials.
Broken Function Level Authorization: Incorrectly implementing function-level permissions that allow users to perform actions they shouldn't be allowed to do.
Mass Assignment: Allowing attackers to modify object properties they shouldn't have access to through APIs that bind client-provided data to data models.
Security Misconfiguration: This can include unnecessary HTTP methods, verbose error messages containing sensitive information, or misconfigured HTTP headers among others.
Injection: Injection flaws, such as SQL, NoSQL, Command Injection, etc., occur when untrusted data is sent to an interpreter as part of a command or query.
Improper Assets Management: Improperly managed APIs can expose endpoints that are more sensitive and should not be publicly discoverable, and undocumented APIs can be exposed unintentionally.
Insufficient Logging & Monitoring: Inadequate logging and monitoring make it difficult to detect or respond to breaches on time, potentially allowing attackers to exploit other vulnerabilities before they can be addressed.
Use of Components with Known Vulnerabilities: Using libraries or software components that have known vulnerabilities can leave an API open to exploitation.
Incorrect Content Handling: Misinterpreting the content by not validating the MIME type, for example, can lead to the execution of malicious code or scripts.

Addressing these risks typically involves implementing robust authentication and authorization checks, validating and sanitizing inputs, implementing access control at multiple levels, rate limiting, logging, monitoring, and regularly updating components and dependencies.

Some Common Best Practices for Securing APIs

Companies need to adhere to API security best practices. They should employ well-established security controls if they plan to share their APIs publicly. Here is the lowdown:

1. Choose the Right Web Service API Protocol

The two API architectures that are most commonly used today are SOAP (Simple Object Access Protocol) and REST (Representational State Transfer). Each has its own set of standards, practices, and operational methodologies.

Security-wise, SOAP has built-in support for WS-Security, which can offer comprehensive security features like message integrity, confidentiality, and multi-factor authentication.

For REST API, security is implemented at the transport level using HTTPS. There are no built-in security features, so any additional security measures need to be implemented by the developer. However, it allows for more flexibility.

2. Use an API Gateway

Using API gateways acts as a protective barrier for services, adding a layer of security by enforcing authentication and authorization measures, validating request payloads, and protecting against common threats such as SQL injection, cross-site scripting (XSS), and cross-site request forgery (CSRF).

3. Create an Inventory

It doesn’t matter if an organization has a few or hundreds of publicly available APIs. Any one of them could help a malicious factor access sensitive data. That’s why a company should conduct perimeter scans to find and keep a list of its APIs. Then, they should work with their DevOps teams to manage them.

4. Implement Authentication and Authorization Solutions

Weak or non-existent authentication and authorization are huge issues with lots of publicly available APIs.

Broken authentication happens when APIs do not enforce it. This often happens with private APIs that are for internal use only or when it’s possible to break an authentication factor easily.

Because APIs can offer an entry point into an organization’s databases, organizations have to operate strict controls to access them. When possible, companies should use solutions focused on proven, appropriate tools. Safe and secure solutions include JSON web tokens, OpenID Connect, or OAuth 2.0.

5. Use the Principle of Least Privilege

Companies should only grant users the minimum access necessary for them to carry out their roles, narrowing access to sensitive data. This always applies to APIs.

6. Encrypt Traffic

Some companies may choose not to encrypt API data they consider to be non-sensitive. This could cover things like weather service information. Organizations whose APIs swap sensitive data such as banking or health information should always use Transport Layer Security (TLS) encryption for API requests as well as API responses.

7. Get Rid of Information That’s Not for Sharing

Companies should apply the principle of data minimization and remove any data that they do not intend to share. Since APIs are generally used by developers, they can contain passwords, keys, or other sensitive information.

8. Don’t Expose More Data Than Is Essential

Some APIs expose far too much data. This could relate to the quantity of superfluous information that gets returned through the API. It might also include information that reveals too much about API endpoints.

This usually happens when an API leaves the task of filtering data to the user interface instead of the endpoint. Companies need to make sure that APIs only return as much information as is necessary to fulfill their function.

9. Data Access Enforcement, Thresholds, and Firewall

As well as this, organizations should enforce data access controls at the API level. They should also monitor data and obscure it if the response contains confidential data.

Organizations should never pass input from an API through to the endpoint without validating it beforehand. They should also set a threshold over which further requests will face rejection. For example, they might allow a maximum of 12,000 requests per day for every account. This can help to prevent “denial of service” (DoS) attacks.

Companies can also use what’s known as throttling. This means slowing a user’s connection down while still allowing them to use your API.

Organizations should always use a firewall that’s able to understand API payload.

10. Log API Activity

When a company suffers a successful hack into its system, it needs to be able to trace the source of the incident. This helps with reporting and putting any problems right.

Logging all API activity is important. If an attacker breaches your protective shield, you can then make a judgment about what and how it happened. This can all help to improve security and reduce the risk of similar incidents in the future.

11. Carry Out Security Tests

It’s vital not to wait until a real attack to see how a company’s safeguards hold up. Organizations need plenty of time for security testing as a way of rooting out potential vulnerabilities. They should test routinely, especially after any API updates.

12. Use a Scanning Tool

A scanning tool such as iDox.ai can help limit any accidental exposure of information that’s not meant for the public domain. Clever technology will sift through files and documents and automatically pick out sensitive information.

This has huge advantages because manually performing this kind of process is time-consuming and ultimately expensive. Using a tool like iDox.ai frees up valuable time and effort better spent on growing a business.

13. Stash Your API Keys

An API key is a sensitive token that grants access to external services and resources. If they are exposed in the source code, particularly in public repositories, unauthorized users could gain access to your APIs and misuse them. This could lead to data breaches, service disruptions, or financial loss if, for example, the keys are used to access paid services.

14. Manage Claims via a Central OAuth Server

A central OAuth server allows for a single point of administration for identity and access management. It's easier to safeguard data privacy and enforce security policies, like multi-factor authentication, password policies, and access controls, when all claims are issued and managed centrally.

15. Regularly Validate the Data

Regular validation helps prevent malicious data from entering the system, which could otherwise lead to security vulnerabilities such as SQL injection, cross-site scripting (XSS), command injection, and other types of attacks. It's an essential part of application layer security that helps to ensure that only expected and correctly formatted data is processed.

Try iDox.ai Today

iDox.ai can save you time and money by reducing the risk of data breaches and ensuring a more robust API security environment.

Frequently Asked Questions

What Is the NIST Standard for API Security?

API security falls under the NIST-800-53 compliance standards.

What Is an Example of An API Security Breach?

One high-profile example of an API security breach is the Facebook data scandal involving Cambridge Analytica, which came to light in early 2018.

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Data Minimization: Companies have to limit the collection of personal data to what is adequate, relevant, and necessary concerning the purposes for which the data is processed. Consent for Sensitive Data: Express consent is required to process sensitive data, which includes data revealing racial or ethnic origin, religious beliefs, mental or physical health diagnosis, sexual orientation, citizenship or immigration status, biometric data for uniquely identifying a natural person, and personal data collected from a known child. Non-Discrimination: Companies are not allowed to discriminate against consumers for exercising their rights under the VCDPA. Security Practices: Organizations are required to establish and maintain reasonable administrative, technical, and physical data security practices to protect the confidentiality, integrity, and accessibility of personal data. Third-Party Relationships: Companies need to ensure that their data processors are adhering to the VCDPA and have to enter into contracts that require processors to follow instructions, understand their duties and delete or return personal data upon the end of the service provided. Transparency: The VCDPA requires that companies provide a clear and meaningful privacy notice that includes the categories of personal data processed, the purposes of processing, how consumers can exercise their rights, the categories of personal data that the company shares with third parties, and the categories of third parties that the company shares data with. Data Protection Officer (DPO): Although not explicitly required by the VCDPA, appointing a DPO can help organizations monitor compliance, manage data protection strategies, and act as a point of contact for data subjects and regulators. No Sell Provision: Companies are called upon to include a clear and conspicuous link on their homepage titled "Do Not Sell My Personal Data" if they sell personal data, allowing consumers to opt-out. Frequently Asked Questions Does the VCDPA Apply in a Commercial or Employment Context? The VCDPA focuses on the rights of consumers regarding the processing of personal data by businesses, meaning that it applies to a commercial context. Employees notably aren’t covered by the VCDPA, and their rights are regulated by other personal data protection laws. Does the Protection of Genetic or Biometric Data Fall Under the VCDPA? Yes, the VCDPA classifies biometric data as a type of "sensitive data," which is afforded additional protection under the act. How Does the VCDPA Discern Between a Processor and a Controller? A controller is a legal or natural person who, alone or jointly with others, determines the purpose and means of processing personal data. The controller decides the extent to which the processor is allowed to process personal data relating to the organization’s purpose. Meanwhile, the processor is the person processing personal data on behalf of the controller. The Final Takeaway for Covered Companies Not knowing that your business practices might be covered under the VCDPA doesn't let you off the hook. If you operate in Virginia or serve consumers from the state, it's critical to have systems in place that help you toe the line. For instance, you might use software tools to find personally identifiable information in scanned documents and communications to make compliance easier. One area where companies commonly trip up is when they work with third-party processors. Shifting the blame isn't a valid legal defense against a VCDPA claim. You're responsible for ensuring that your partners and business systems also comply with the rules. iDox.ai makes it easier to protect your consumers and your enterprise. By using SOC 2-compliant , ISO 27001-certified AI technology to find personal information, redact documents, and keep you on top of your security stance, iDox.ai powers business practices that meet legal requirements with fewer operational burdens. Reach out to iDox.ai today to learn how to keep your enterprise ready for the privacy-oriented legal landscape.

Jul 26, 2022

two people standing outside a building with many security cameras.

What Is the 2024 CCPA Compliance Checklist?

Understanding the 2024 CCPA Compliance Checklist: What You Need to Know The Californian Consumer Privacy Act (CCPA) was enacted in 2018 in response to growing concerns about privacy, data security, and consumer rights. It aims to enhance privacy protections for Californian residents by giving them more control over their personal information, including its collection, use, and deletion. Simultaneously, this puts website owners in a precarious position regarding compliance. So, while you may know these consumer rights, you may have no idea how to respect them. This article contains a comprehensive CCPA compliance checklist to help you stay ahead of data privacy laws. 2024 CCPA Compliance Checklist Honoring consumer rights should be easier with a comprehensive CCPA compliance checklist. Here are the items you must consider for effective CCPA compliance . 1. Determine Applicability of the CCPA to Your Business The CCPA applies to your business if it is a for-profit entity in California. Non-profit businesses aren’t covered. For your business to fall under the CCPA rules, it should meet the following criteria: It should have annual gross revenues of at least $25 million; It must hold the personal information of at least 50,000 people for commercial purposes. It should derive at least 50% of annual revenue from the sale of consumer personal data. 2. Identify and Classify Data If CCPA regulations apply to you, carry out data inventory and mapping to determine the types of data you collect, its sources, the purpose of collection, and the entities you share with. Details may include: Names IP addresses addresses Purchase history Browsing history, etc. 3. Prepare a Compliant Privacy Policy Prepare and publish a privacy policy that complies with the CCPA. In the policy, explain how you collect, share, and sell consumer information. Also, outline the CCPA consumer rights. Update the policy annually to stay current with the CCPA. 4. Establish Consumer Request Mechanisms CCPA rules allow consumers to request access to their personal information. Once a consumer requests it, you should provide the data within 45 days. You can make it easier by establishing mechanisms such as the following: ● Toll-free numbers ● Online portals ● A reliable email address You also need to establish a clear process for receiving consumer inquiries or for them to opt out of your program to sell their data. For example, you could have a checkbox or link titled: “ Do Not Sell My Personal Data .” 5. Establish a Reliable Data Security System The CCPA mandates businesses to protect consumer’s personal information and mitigate the risk of any potential data breach. But you can only do so by creating sufficient data protection and security systems. At the very top of the list, implement the following: Data encryption Multi-factor authentication Regular system audits A response plan to data breaches 6. Maintain a Data Inventory of Processing History While explaining to customers how you collect data and its purposes is important, you should have a clear record of the collected data and how you have used or processed it. Maintain a data inventory by identifying the sources and locations of storage for all personal data and document details like data type, retention period, and purpose. Review and update the inventory to comply with any changes in the CCPA regulations. 7. Create a Data Collection Notice Before collecting personal information, inform consumers of your intentions to collect it. Include details such as the types of information you need and the reasons for collecting it. If you intend to sell the information, provide a “ Do Not Sell ” checkbox or link for the customer to opt out easily. 8. Provide Easy Data Deletion Procedures At some point, your customers may want to delete their personal data. As part of your CCPA compliance checklist, you should make it easy for customers to request its deletion. If you do not do so, you could face serious legal challenges. Besides a mechanism allowing customers to request data deletion, implement measures to identify data for an individual customer and delete it as requested. 9. Ensure Third-Party Compliance Since you’ll share personal data with third parties, ensure they comply with the CCPA’s information protection policies. Implement a system to audit third-party businesses for ongoing compliance with CCPA rules. Understanding the California Consumer Privacy Act (CCPA)? The CCPA empowers California consumers with greater control over the personal data collected by businesses. Here are its key provisions: 1. Right to Know California residents can request businesses to disclose: The categories and specific pieces of personal information collected about them; The sources of that personal information; The purposes for which the business uses the information; The categories of third parties with whom the business shares the sensitive data; The categories of information the business sells or discloses to third parties. The right to access their personal information free of charge. The right to move their private data wherever they want. The right to know the financial incentives for collecting, selling, or deleting personal data. 2. Right to Delete Under the CCPA, Californian customers can request businesses delete their personal information. Businesses must verify their identity to prevent unauthorized requests and promptly delete the specified personal information when they receive a valid request. They also have to notify any service providers or third parties with whom they shared the data to delete it. Finally, they must maintain records of customer requests and their responses for at least 24 months. Exceptions apply in the following cases: Necessary for Transactions: Businesses aren’t required to delete personal information if it’s necessary to complete a transaction or provide a service requested by the consumer. For example, if you have an active account with an online retailer, they may retain your information to process orders. Legal Obligations: Businesses can retain personal information if it’s necessary to comply with legal obligations, such as tax records or fraud prevention. Research or Public Interest: Data used for research purposes or the public interest may be exempt from deletion. 3. Right to Opt-Out As a California resident, you have the right to request that businesses stop selling or sharing your personal information. Businesses must provide a clear link on their homepage that allows consumers to exercise this right, with anchors such as “ Do Not Sell or Share My Personal Information ” or “Limit the Use of My Sensitive Personal Information.” If you opt-out, you must re-authorize a business to sell or share your consumer data. However, the CCPA does not prevent businesses from using the data within their organization, even across different business units. It specifically addresses the sale or sharing of personal information with external parties. Note that the California Privacy Rights Act (CPRA), which amends the CCPA, now gives consumers the right to correct inaccurate information or limit the use of personal information. 4. Right to Non-Discrimination The CCPA explicitly prohibits businesses from treating consumers differently or discriminating against them based on their exercise of CCPA rights. In other words, they cannot penalize you by denying services, charging a higher price, or providing a lower quality of service. This doesn’t mean that businesses must always provide services for free; they can still charge reasonable fees related to the value of the service provided. In addition, if businesses offer loyalty programs or financial incentives, they must be clearly disclosed and not disadvantageous to consumers who exercise their rights. The California Attorney General’s Office investigates complaints related to non-discrimination. Consumers can file complaints if they believe a business discriminates against them. Easily Achieve CCPA Compliance with iDox.ai CCPA compliance can be challenging to achieve manually and on your own. The easiest way to comply with CCPA rules and regulations is through technology. Data discovery platforms like iDox.ai can help you better understand your data and manage it more effectively. Using our technology, you can easily discover, redact, and eliminate liable, sensitive information inside your data ecosystem. Thus, you can take control of and protect sensitive information in all files promptly. Contact us to get started today !

Nov 14, 2023

What Is SOX Reporting? Everything You Need to Know

What Is SOX Reporting: 6 SOX Report Best Practices When your company decides to go public, adherence to the Sarbanes-Oxley Act of 2002 (SOX) is mandatory. SOX came into force in the aftermath of high-profile corporate financial scandals, introducing rigorous standards to restore trust in financial markets. One of the key SOX requirements revolves around reporting. The goal of SOX reporting is to ensure accurate, transparent financial reporting, holding companies to a higher standard of transparency, integrity, and accountability. The challenge for many, however, lies in navigating the complexities of SOX reporting. How does a company ensure it's on the right track? The answer lies in understanding and implementing SOX report best practices. Keep reading to learn what is SOX reporting and discover these best practices to ensure your company has a roadmap for navigating this essential regulatory landscape. Highlights SOX reporting ensures compliance with the Sarbanes-Oxley Act’s requirements for accurate and transparent financial reporting after various corporate scandals shook investor confidence. The two most critical sections of SOX are Section 302 (corporate responsibility for financial reports) and Section 404 (management assessment of internal controls). A public company’s CEO and CFO are personally responsible for handling a SOX audit. What is SOX Reporting? SOX reporting refers to the compliance and reporting obligations of companies under the Sarbanes-Oxley Act of 2002 (often abbreviated as SOX). This U.S. federal law was enacted in response to a series of high-profile financial scandals, including those at Enron, WorldCom, and Tyco. These scandals highlighted systemic issues with financial transparency, corporate governance, and the accountability of companies and their executives. In a bid to restore investor confidence and protect shareholders from the repercussions of corporate malfeasance, Sarbanes and Oxley drafted the act with the primary goal of improving corporate governance and accountability. The Act introduced stringent reforms to enhance financial disclosures from corporations and to prevent accounting fraud. SOX reporting, therefore, involves a company's demonstration of its adherence to the various provisions of the Sarbanes-Oxley Act. Any violations can lead to an investigation by the PCAOB (Public Company Accounting Oversight Board). SOX reporting is centered around two key sections of the Act: Section 302 and Section 404. Section 302 This pertains to " corporate responsibility for financial reports ." Under this section, senior corporate officers (typically the CEO and CFO) have to personally certify that the quarterly and annual financial reports filed with the Securities and Exchange Commission (SEC) are both accurate and complete. CEOs and CFOs need to evaluate the effectiveness of internal controls within 90 days before issuing the report. This evaluation determines whether the internal controls are sufficient to ensure the accurate and complete reporting of financial data. Section 404 This section relates to the " management assessment of internal controls ." It requires publicly traded companies to include in their annual reports a statement from management that acknowledges the management's responsibility for establishing and maintaining an adequate internal control structure and procedures for financial reporting. These internal controls are processes designed to ensure the reliability of the company's financial reporting and the preparation of its financial statements. In addition to the statement from management, Section 404 mandates that companies include an assessment of the effectiveness of their internal controls at the end of their fiscal year. What Are the Other SOX Compliance Requirements? Key compliance requirements of SOX other than Section 302 and Section 404 include: Certification of Financial Reports: The CEO and CFO have to certify that financial reports are accurate and complete. Enhanced Financial Disclosures: Companies need to provide enhanced disclosures in their financial statements, including off-balance-sheet transactions and the use of pro forma figures. Audit Committee Independence: The audit committee has to be composed of independent directors and is responsible for the oversight of the company’s external auditor. Independence of External Auditors: External auditors are prohibited from providing certain non-audit services to their audit clients to ensure the auditor's independence. Protection for Whistleblowers: SOX protects whistleblowers, protecting them from retaliation by their employers for providing information about fraud or violations of SEC rules. Criminal and Civil Penalties for Violations: Executives can face criminal penalties for falsifying financial statements and other violations of SOX. Management and Auditor Reports on Internal Controls: Annual reports have to include a section that assesses the effectiveness of the internal controls and procedures for financial reporting. Enhanced Reporting Requirements for Insider Transactions: Insiders have to report transactions involving company stock more quickly and disclose changes in the ownership of company stock. SOX Report Best Practices Here are six essential SOX report best practices: 1. Implement Robust Internal Controls Implementing robust internal controls is a cornerstone of SOX report best practices. They comprise the policies, procedures, and mechanisms designed to ensure that financial reporting is accurate, reliable, and compliant with SOX reporting requirements. These controls can safeguard against potential financial discrepancies. When you continuously review and update these controls, you can ensure they are aligned with current business practices, reducing the risk of material misstatements in your financial reports. 2. Maintain Continuous Documentation To ensure that you're always prepared for audits and to validate your adherence to SOX requirements, continuously document all financial processes and controls. This includes any changes made to them. By maintaining a comprehensive and updated record, you'll simplify the SOX reporting process and demonstrate a proactive approach to compliance. 3. Implement Regular Training Make sure that your employees, especially those directly involved in financial operations and SOX reporting, receive regular training. Regular training sessions and workshops can help keep the team updated about any changes to the Act, ensuring that your company remains compliant. 4. Embrace Automation Consider investing in SOX compliance software or tools. These technologies streamline the documentation, testing, and monitoring processes, making it easier for you to manage and track your compliance activities. Automation can also reduce human error, one of the potential risks in financial reporting. 5. Foster a Culture of Open Communication Encourage a work environment where employees feel safe to voice concerns or report potential discrepancies. Whistleblower policies , as mandated by SOX, should be robustly implemented to protect employees who raise alarms about potential financial misconduct or inconsistencies. By ensuring that channels of communication are open, you can detect and address issues before they escalate. 6. Engage in Continuous Monitoring Instead of treating SOX compliance as an annual event, shift your mindset to view it as an ongoing process. Continuously monitoring your controls and processes will help you identify and rectify potential weaknesses promptly. This proactive approach can save you from last-minute scrambles during the reporting period. Frequently Asked Questions What Is the Difference Between SOC and SOX Reporting? In summary, SOC ( System and Organization Controls ) reports focus on ensuring compliance with data security and privacy controls within service organizations, while SOX reporting focuses on internal controls over financial reporting. What Are the Four SOX Controls? A SOX compliance audit requires four key areas of focus when filing an internal control report. These are: Access Control IT Security Data Backup Change Management Who Is Responsible for SOX Reporting? Under the Sarbanes-Oxley Act, the chief executive officer (CEO), chief financial officer (CFO), and other similar executive roles with authority over a company’s financial records are considered personally responsible for handling reports on SOX internal controls. Ensure SOX Reporting Compliance with iDox.ai Navigating the intricacies of SOX compliance can be daunting for any organization. Yet, accurate financial reporting and stringent internal controls are non-negotiable in today's business landscape. With tools like iDox.ai , the path to compliance becomes more straightforward. This advanced data discovery platform ensures your financial reporting aligns with SOX requirements. It also offers mechanisms to manage key controls like access, duties segregation, and authorization workflows to ensure financial integrity. Contact us today and learn how our solution ensures a seamless SOX reporting compliance experience.

Nov 17, 2023

CCPA vs CPRA - Top Features and Differences

California's evolution from the CCPA to the CPRA in a matter of years goes to show the unpredictable nature of data privacy regulation at large. If you're familiar with either one, give this article a read. It goes into detail explaining each law, how they relate to one another, the differences between them, and the implications for businesses and consumers alike. What Is the CCPA? The CCPA, or California Consumer Privacy Act, was a first-of-its-kind piece of legislation first introduced by California's state government in 2018. The final version established local residents' rights with respect to how their personal information is collected, handled, and managed by businesses online. Spelled out, these include: ● The right to know what data companies collect from them and how that data is used. ● The right to request the deletion of personal data companies collect from them, with some exceptions. ● The ability to opt out of the sale or sharing of personal data. ● Protection against discrimination for exercising CCPA rights. What Is the CPRA? The CPRA, or California Privacy Rights Act for short, is a newer law that was approved by a public vote in November 2020. Intended to extend the original CCPA's level of protection, the framework's provisions gave citizens additional rights to correct any inaccurate personal data companies hold on them and the right to limit companies' use and disclosure of their sensitive personal data - more on these later. Comparing CCPA v CPRA Rules While the CCPA was already quite comprehensive, state lawmakers saw a need to update it in the face of evolving risks. With every year bringing more sophisticated data collection and usage techniques, it would only be a matter of time before the original framework's protections would become outdated. This newer version effectively replaced the first to give it the name most people refer to it by today – CCPA 2.0 or CPRA. The biggest differences between the CCPA and its successor, the CPRA, are as follows. More Consumer Rights The CPRA gave California residents additional control over the accuracy and disclosure of their personal data while also making slight changes to existing rights to opt out of third-party sales, to know, and to delete. It further established consumers' right to access information about any forms of automated decision-making technology businesses use to handle their personal information. Qualifying Criteria for Businesses Lawmakers adapted the criteria organizations need to meet in order to qualify for the law, effectively doubling the CCPA's original earning threshold for consumer data purchase, sale, and sharing activities to $100,000 per year. That adds some breathing room for smaller organizations that would otherwise qualify at $50,000. Protections for Highly Protected Data The California Privacy Rights Act outlines special protections for Sensitive Personal Information (SPI), including new purpose limitation requirements and updated disclosure requirements. GDPR Influences California's data privacy laws are often compared to those of the European Union, which is well-known for its equally extensive General Data Protection Regulation (GDPR). The two started out completely unique, but have since influenced one another in several ways. The CPRA notably adopted three characteristic GPPR concepts - data minimization, purpose limitation, and storage limitation - in its amendments. Legally Actionable Types of Data The CPRA expands consumers' ability to take legal action against companies who fail to protect their personal information, adding login credentials to the sensitive types of data that consumers can sue over. Privacy Enforcement Authority The CPRA created the California Privacy Protection Agency (CPPA), an independent state agency responsible for enforcing consumer data privacy rights. The CPPA has broad authority to conduct investigations, issue orders, and impose fines on companies that violate CPRA regulations. Conclusion The California Privacy Rights Act surpasses the CCPA in terms of comprehensiveness, adding several key components to its predecessor's framework and strengthening consumer data privacy rights across the state. Despite having only been effective since January 1st, 2023, the CPRA has already had a major influence on other U.S jurisdictions as they look to update and improve their own data privacy regulations. Stay ahead of compliance with iDox.ai Data Discovery platform. iDox.ai’s c omprehensive data discovery platform streamlines your CPRA compliance journey, enabling you to protect consumer rights, enhance data privacy, and maintain customer trust.

Nov 27, 2023