Hashing

Definition

Hashing is a security technique that converts personal data into a fixed-length value to help protect information and reduce risks of unauthorized access under the DPDPA.

Under the Digital Personal Data Protection Act, 2023 (DPDP Act), hashing refers to a technique where data is transformed into a unique fixed-length value using a mathematical function. In privacy and security contexts, hashing may be used to protect certain information by making it difficult to retrieve the original data from the hashed value. When applied appropriately, hashing can support Data Fiduciaries in protecting personal data during processing activities.

Organizations may use hashing for purposes such as protecting identifiers, reducing exposure of personal data, enabling secure comparisons, or supporting authentication-related processes. For example, an organization may hash certain identifiers before using them in specific workflows where direct access to the original information is not required. However, hashing does not automatically remove data from the scope of the DPDP Act because the treatment of hashed information depends on whether it can still be linked back to an identifiable individual.

The DPDP Act does not specifically mandate hashing as a required security measure. However, Data Fiduciaries are required to implement reasonable security safeguards to protect personal data and prevent Personal Data Breaches. Hashing may be one of the technical measures organizations consider as part of their broader security and privacy practices, depending on the nature of processing and risk involved.

In practice, gaps emerge when:

Organizations assume hashed data is always outside the scope of personal data protection.
Hashing is applied without assessing whether individuals can still be identified.
Sensitive identifiers are stored without appropriate protection measures.
Teams use weak hashing methods that do not provide sufficient protection.
Organizations lack visibility into where transformed personal data is being used.

Organizations address these challenges by evaluating the type of personal data being processed, selecting appropriate protection techniques, maintaining security practices, and documenting how personal data is safeguarded. Within Privy, capabilities such as data discovery, data classification, data mapping, and privacy governance workflows help organizations understand personal data locations and support responsible data protection practices.

Here’s everything you need to know about this term and how it fits into your compliance program.

Still have a question?

Hashing is a technique that converts data into a fixed-length value and may be used as part of security measures to protect personal data during processing.

Not necessarily. If hashed information can still be linked to an identifiable individual, it may continue to be considered personal data under the DPDP Act.

No. The DPDP Act does not specifically require hashing. Organizations must implement appropriate security safeguards based on the nature and risks of their personal data processing.

Hashing is generally a one-way transformation, while encryption is designed to protect data through reversible transformation using a key. The appropriate approach depends on the processing requirement.

Privy helps organizations discover, classify, and map personal data across environments, enabling better visibility and governance of personal data processing activities.

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