Data protection is important because of increased usage of computers and computer systems in certain industries that deal with private information, such as finance and healthcare. Because people have rights to privacy in their personal medical and financial information, it is vital that administrators in charge of systems handling this information are capable of protecting that data, according to the Department of International Law for the Organization of American States.
Although digitizing information and databases is a very efficient way of handling large amounts of information, it also opens that information up to the threat of being copied outside of the system. Many hospitals and financial institutions keep private information about their clients on computers. When these files are illegally accessed by outside sources, the company's reputation is damaged and, in many cases, the customers' right to privacy is breached.
Personal medical files, Social Security numbers and credit card numbers are all examples of information that may be stored online and at risk. By developing systems of data protection and avoiding unauthorized opening of these files, businesses can reduce the risk of having their clients' information compromised. This is also important for other online businesses that store large amounts of information about their users, such as social networking and online shopping websites.