Is identification data important and how is it regulated by law?

Identification Data is increasingly becoming a focal point in corporate governance as the risks of data leakage and violations continue to rise. This article helps readers gain a clear understanding of the concept, the level of sensitivity of this type of data, the relevant legal regulations, and the responsibilities of organizations in collecting, using, and safeguarding such data in order to avoid unnecessary legal liabilities.

I. Introduction to Issues Related to Identification Data

In the context where enterprises are increasingly dependent on technology and online transactions, Identification Data has become one of the most sensitive categories of data requiring strict protection. This type of information enables the identification of an individual in the digital environment; therefore, if it is improperly collected, misused, or leaked, the consequences may include fraud, misappropriation of property, cyberattacks, or serious violations of users’ privacy rights.

The management of Identification Data is not merely a matter of information security, but also a legal obligation clearly stipulated under the Law on Cyberinformation Security 2015, Decree No. 13/2023/ND-CP on Personal Data Protection, and other relevant legal instruments. However, in practice, many enterprises have yet to clearly determine the boundary between lawful collection and use and acts constituting legal violations.

Therefore, correctly understanding the nature of Identification Data, recognizing potential risks, complying with legal obligations, and applying appropriate protective measures are crucial factors enabling enterprises to prevent violations and build trust with customers. This article will clarify each of these aspects.

II. Understanding Identification Data

To effectively manage and ensure legal compliance, it is first necessary to accurately understand what Identification Data is, what types it includes, and why it has become a vulnerable target in today’s digital environment.

1. What Is Identification Data?

Identification Data refers to information that allows for the direct identification of an individual, such as full name, identification number, citizen identification number, facial images, biometric data, or any other data that enables the precise identification of a person in transactions or in the digital environment. This category of data is highly sensitive and is subject to strict legal protection requirements.

2. What Types of Identification Data Are Commonly Used in Daily Transactions?

In daily transactions, Identification Data commonly includes information capable of directly identifying an individual, such as: full name, citizen identification number, telephone number, email address, residential address, facial images, biometric data, personal tax identification number, or bank account number. These types of data are frequently used when registering for services, verifying identity, conducting financial transactions, or accessing online platforms.

3. How Can Identification Data Be Leaked and What Are the Consequences?

Identification Data may be leaked from various sources, particularly in the digital environment where information is continuously stored and exchanged.

Ways in which data may be leaked include:

• Cyberattacks on storage systems, allowing hackers to gain access and steal information.
• Security vulnerabilities in software or applications, leading to unauthorized access to information.
• Internal employees leaking data due to inadequate controls or deliberate exploitation.
• Unlawful collection through online forms, where users provide information on insecure websites.
• Sharing data with third parties without adequate safeguards, resulting in misuse of information.

Consequences of data leakage include:

• Identity impersonation, leading to the opening of accounts, borrowing, or unauthorized transactions.
• Fraud and misappropriation of property through the exploitation of leaked personal information.
• Infringement of privacy rights, adversely affecting the personal lives of users.
• Enterprises are subject to administrative penalties, reputational damage, and potential liability for compensation to customers.

In summary, the leakage of Identification Data not only causes direct harm to users but also creates significant legal and reputational risks for enterprises. Therefore, protecting this type of data is a mandatory and urgent requirement.

4. Is There a Difference Between Identification Data and Other Personal Data?

Identification Data constitutes a special subset of personal data but carries a higher level of sensitivity and is therefore subject to stricter legal protection.

The key differences are reflected in the following aspects:

• Direct identifiability: Identification Data (such as citizen identification numbers, biometric data, or facial images) can immediately identify an individual, whereas other personal data (such as preferences or consumption behavior) is generally descriptive in nature.
• Higher level of sensitivity: If Identification Data is leaked, the risks of identity theft, misappropriation of property, or unauthorized account access are extremely high, while other types of personal data usually do not result in such severe direct consequences.
• Stricter security requirements: The law typically requires more stringent protective measures, faster breach notification, and narrower processing scopes for Identification Data compared to ordinary personal data.
• Restricted scope of use: Identification Data may only be collected when strictly necessary for identity verification, whereas other personal data may be collected for analysis, customer care, or marketing purposes (subject to user consent).

In conclusion, Identification Data represents the “most sensitive” segment of personal data, requiring enterprises to exercise greater caution in its processing in order to avoid legal risks and protect users’ privacy rights.

III. Legal Regulations Related to Identification Data

The collection, use, and protection of Identification Data is not only an information security requirement but also a mandatory legal obligation. Vietnamese law has established specific provisions on rights, responsibilities, and sanctions to ensure the protection of users’ privacy and the accountability of enterprises.

1. How Does Vietnamese Law Regulate the Protection of Identification Data?

The protection of Identification Data is a mandatory legal requirement aimed at safeguarding privacy and personal safety. Below are key provisions of Decree No. 13/2023/ND-CP on Personal Data Protection:

• Definition of identification data: Pursuant to Clause 1 Article 2, Identification Data refers to information that directly identifies or, when combined with other data, enables the identification of an individual. Examples include full name, citizen identification number, passport number, biometric data, images, tax identification number, and bank account number.
• Principles of data processing and management: Under Clause 3 Article 3 and Article 5, personal data must be collected for lawful purposes, in an appropriate manner, and minimized to what is necessary for processing. The purchase, sale, or unlawful transfer of data is strictly prohibited. The State has authority and responsibility to manage and supervise data use in accordance with the law.
• Rights of data subjects: Pursuant to Articles 9, 11, 12, 16, and 17, data subjects have the right to access, correct, erase data, withdraw consent, and object to data processing. Data controllers and processors must respond to such requests within 72 hours, unless otherwise provided by law.
• Security measures and breach notification: Under Articles 26, 27, and 28, organizations must implement technical and managerial measures to protect data and prevent loss, leakage, or unauthorized access. Upon detecting a violation, notification must be made to the competent authority within 72 hours (Clause 1 Article 23).
• Liability for violations: Pursuant to Article 4, organizations that violate data protection obligations are subject to administrative sanctions, compensation for damages, and remedial measures.

Accordingly, Decree No. 13/2023/ND-CP establishes a comprehensive legal framework for the protection of Identification Data, including definitions, processing principles, data subject rights, security measures, and liability for violations. Compliance with these provisions enables enterprises to ensure data security and avoid legal risks.

2. What Violations Commonly Occur in the Processing of Identification Data?

In practice, the processing of Identification Data may lead to various violations if organizations or individuals fail to comply with legal requirements. Common violations include:

• Processing data for improper purposes or beyond the permitted scope.
• Unlawful collection or use of data, including buying, selling, transferring, or retaining data without necessity or consent.
• Failure to ensure data subject rights, such as refusing or delaying access, correction, or deletion of personal data.
• Inadequate security measures, resulting in data leakage, loss, or unauthorized access.
• Failure to notify data breaches to data subjects and competent authorities in a timely manner.

These violations reflect common risks in the processing of Identification Data. Understanding them enables organizations to proactively implement protective measures, mitigate legal risks, and safeguard individual rights.

3. Does Failure to Notify Users of the Method of Collecting Identification Data Constitute a Violation?

Failure to notify users of the method of collecting Identification Data constitutes a legal violation. Article 9 of Decree No. 13/2023/ND-CP provides for the rights of data subjects, including the right to be informed of the collection and processing of personal data; the right to consent to or refuse data processing; and the right to object, lodge complaints, denunciations, initiate lawsuits, and claim compensation for damages.

Data subjects must be informed and give consent before their personal data is collected or processed. If an organization fails to provide such notification, the rights to be informed and to consent are infringed, resulting in violations of personal data protection laws and potential legal liability.

4. If an organization unilaterally shares users’ Identification Data with a third party, is this lawful? How will it be handled?

Pursuant to Decree No. 13/2023/ND-CP, the data controller is required to notify the data subject if the data is shared with a third party (Article 13). Personal data must not be provided if the data subject has not given consent (Article 14). At the same time, both the data processor and the third party are responsible for complying with regulations on personal data protection (Articles 39 and 41).

Accordingly, where data is shared without notification and without the user’s consent, the data subject’s right to be informed and right to consent are infringed. Both the sharing organization and the third party may bear legal liability if the data is unlawfully used or leaked.

Therefore, the sharing of Identification Data is only lawful where there is clear consent from the data subject and the organization fully implements protective measures in accordance with the law. Violations may result in administrative sanctions, liability for damages, and serious legal risks.

IV. Frequently Asked Questions Related to Identification Data

In the course of processing and protecting Identification Data, enterprises and individuals often have concerns regarding rights, obligations, and compliance with legal regulations. This section summarizes frequently asked questions to clarify organizational responsibilities, user rights, and data protection measures.

1. What obligations does a company have in safeguarding customers’ Identification Data?

A company has the obligation to safeguard customers’ Identification Data, ensuring that such data is collected, stored, processed, and shared securely and in compliance with the law. Pursuant to Article 15 of the Law on Protection of Consumers’ Rights 2023, enterprises must fulfill the following obligations:

• When collecting, storing, using, amending, updating, or deleting personal information, enterprises must ensure information security and comply with applicable laws.
• When authorizing or engaging a third party to process customer information, enterprises must obtain the consumer’s consent and execute a written agreement clearly specifying the scope of processing and the data protection responsibilities of each party, in full compliance with the law.
• Where consumers conduct transactions through intermediaries or third-party platforms, such third parties are also responsible for safeguarding information in accordance with legal regulations.

These provisions require enterprises to proactively protect customer data, maintain transparency in authorizing data processing, and ensure that all relevant parties comply with data protection measures. Enterprises must fully implement security measures, monitor processing activities, and coordinate with related parties to protect customer data, safeguard consumer rights, and avoid legal risks.

2. If a customer requests the deletion of Identification Data, is the enterprise required to comply?

An enterprise is required to delete data where the customer’s request falls within the cases permitted by law. However, not all deletion requests must be complied with, as certain exceptions apply.

Pursuant to Decree No. 13/2023/ND-CP on Personal Data Protection, Clause 1 Article 16 provides that a data subject has the right to request deletion of personal data where the data is no longer necessary for the agreed collection purpose; where the data subject withdraws consent; where the data subject objects to processing and the controller has no legitimate grounds to continue processing; where the data is processed for improper purposes or in violation of the law; or where deletion is required by law.

Conversely, Clause 2 Article 16 specifies cases in which data deletion does not apply, including data that the law does not permit to be deleted; data serving state agency activities; publicly disclosed data; data processed for legal compliance, scientific research, or statistical purposes; or in emergency situations relating to national defense, security, disasters, epidemics, or threats to life, health, or safety of the data subject or others.

Accordingly, the right to request data deletion is protected by law but only applies in appropriate cases and must not conflict with legal requirements or emergency circumstances. Enterprises must examine the grounds for deletion requests and determine whether any exceptions apply before proceeding.

3. In the event that Identification Data is leaked, what steps must an enterprise take to address the incident?

When data leakage occurs, enterprises must act promptly to mitigate damage and comply with legal requirements. Pursuant to Decree No. 13/2023/ND-CP (Article 38), the data controller must protect data, maintain logs, notify of violations, and cooperate with competent state authorities.

Steps to be taken include:

• Detection and assessment of the incident: Identify the scope and extent of affected data to determine appropriate handling measures.
• Containment and system protection: Implement technical measures to prevent further leakage and secure systems.
• Notification to customers, management, and regulatory authorities: Ensure transparency and fulfill legal obligations.
• Investigation and remediation: Identify root causes and implement corrective actions to prevent recurrence.
• Customer support: Provide guidance, protective services, or compensation to mitigate customer harm.
• Review, upgrade security, and train employees: Update procedures and policies and enhance awareness to prevent future incidents.

Proper implementation of these steps enables enterprises to protect customer interests, minimize legal risks, and maintain reputation.

4. If company employees misuse Identification Data, can the company be held liable?

An enterprise may be held liable if employees misuse Identification Data in the course of their employment, unless the enterprise can demonstrate that it has fully implemented protective, supervisory, and training measures in accordance with the law.

Pursuant to Article 38 of Decree No. 13/2023/ND-CP, the personal data controller bears responsibility to the data subject for damages arising from data processing activities. Where employee misconduct occurs, legal liability remains with the company if it has failed to implement adequate technical, managerial, or training measures to prevent unlawful acts.

Accordingly, enterprises may be liable for employee misuse of data and must establish robust protection, supervision, and training mechanisms to mitigate risks and safeguard customer rights.

5. What measures should be applied to protect Identification Data from leakage?

Enterprises must implement a combination of managerial, technical, and legal measures to protect Identification Data from the point of collection throughout the entire processing lifecycle.

Pursuant to Article 26 of Decree No. 13/2023/ND-CP, personal data protection measures must be continuously implemented and include:

• Managerial measures: Establish procedures, policies, access controls, and employee training to mitigate human-related risks.
• Technical measures: Apply security technologies such as encryption, firewalls, system monitoring, and data backups to prevent unauthorized access.
• Regulatory authority measures: Comply with guidance, inspections, and requirements issued by competent state authorities regarding data protection.
• Investigation and judicial measures: Cooperate with investigative authorities upon detection of violations to ensure timely and transparent handling.
• Other measures as required by law: Apply additional measures where required by law or industry-specific regulations.

The integrated application of managerial, technical, and legal measures enables enterprises to protect Identification Data, prevent leakage, ensure legal compliance, and enhance customer trust.

V. Are You Looking for a Reputable Law Firm to Support Issues Related to Identification Data?

If you or your enterprise require legal advice on the collection, processing, protection, or sharing of Identification Data, NPLaw is a reputable choice with a team of experienced lawyers. NPLaw provides comprehensive services, including the development of privacy policies, risk assessments, drafting data processing agreements, employee training, and assistance in handling violations. The firm also represents enterprises in disputes, protects clients’ rights before competent authorities, and coordinates promptly to address situations involving sensitive data.

The above information is for reference purposes only. For detailed advice tailored to specific circumstances, clients are encouraged to contact NPLaw for immediate consultation.