Understanding Data Classification and Sensitivity

Before implementing encryption and storage strategies, organizations must classify their data based on sensitivity levels. Not all data requires the same level of protection, and over-encrypting can impact performance and complexity unnecessarily. Data classification typically includes categories such as public, internal, confidential, and highly confidential. Each category requires different security controls, encryption methods, and access restrictions. Understanding these classifications helps developers make informed decisions about when and how to apply encryption.

Sensitive data encompasses various types: personally identifiable information (PII) like social security numbers and addresses, financial data including credit card numbers and bank accounts, health information protected under regulations like HIPAA, authentication credentials, and proprietary business information. Each data type may have specific regulatory requirements affecting how it must be stored and protected. Developers must understand these requirements to implement compliant storage solutions.