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Statistics and privacy: how to collect data while protecting privacy

07/09/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Statistical methods are an important tool for gaining insights from data and making informed decisions. However, in an age where more and more data is being collected, it is important to ensure that data protection is in place. In this article, we will look at the basic concepts of data protection and statistics and how to effectively combine the two.

What is data protection?

Data protection refers to the protection of personal data from misuse and unauthorized access. In the EU, the General Data Protection Regulation (GDPR) regulates the handling of personal data. It ensures that the privacy of individuals is respected and protected. The GDPR obliges companies that process personal data to obtain the consent of the data subject and to keep this data secure.

What is statistics?

Statistics refers to the collection, analysis and interpretation of data. Statistical methods help identify trends and patterns in data to make informed decisions. In statistics, there are several methods to analyze data, including descriptive statistics, inferential statistics, and multivariate statistics.

How can you combine privacy and statistics?

The first step in combining data protection and statistics is to ensure that the data is anonymized or pseudonymized. This means that all personal information is removed from the data before it is analyzed. In anonymization, all information that could allow conclusions to be drawn about a specific person is removed. In pseudonymization, personal data is encrypted to protect the identity of the individual.

The second step is to ensure that the data is used only for its intended purpose. Data subjects should be informed about the use of their data and give their consent. Companies should ensure that their data protection policies and procedures comply with the requirements of the GDPR.

The third step is to ensure that data is stored and transferred securely. Companies should take appropriate measures to ensure the security of their data, including encryption and access control.

Which statistical methods are suitable for data protection?

There are several statistical methods that are suitable for data protection. Here are some examples:

Aggregation: this refers to grouping data together to protect the identity of individuals. For example, you can aggregate data from customers in different age groups to identify trends in sales without compromising the privacy of individual customers.

Privacy: This method refers to the removal of data that could draw conclusions about a specific individual. For example, missing values can be replaced with random values to protect the identity of the data subjects.

Anonymization: this method refers to the removal of all personal information from the data to ensure that the identity of the data subjects is not known. Anonymization removes all data that could directly or indirectly allow conclusions to be drawn about a specific person.

Pseudonymization: this method refers to the encryption of personal data to protect the identity of the data subjects. Pseudonymization involves encrypting personal data to ensure that the identity of the data subjects is not known.

Conclusion

Statistical methods can be a valuable tool for gaining insights from data and making informed decisions. However, it is important to ensure that data privacy is protected and that the privacy of the data subjects is protected. By using methods such as anonymization and pseudonymization, organizations can ensure that the identity of data subjects is not known and that their data is safe and secure.

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