Personal Identifiable Information (PII) refers to any data that can be used to identify a specific individual, either directly or indirectly.

This includes obvious identifiers such as a person’s full name, identification number, home address, email address or phone number, as well as less direct data like date of birth, IP address or biometric records when combined with other personal data. PII is considered highly sensitive because its misuse can lead to identity theft, fraud or other privacy breaches.

When it comes to Know Your Customer (KYC) compliance, collecting and protecting PII is a critical part of verifying customer identity and meeting regulatory requirements. Financial institutions and regulated entities must handle PII with strict data protection standards and security controls, ensuring that the information is stored, accessed and shared only for legitimate and legal purposes.

Mishandling or unauthorized disclosure of PII can result in legal penalties, reputational damage and loss of customer trust. Data protection laws such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States place strong obligations on how PII is collected, processed and retained.