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Data Anonymization

Various organizations, such as hospitals, social agencies or commercial companies, sometimes need to release potentially sensitive information to the other parties. They might want to do that in order to gain additional insight into the domain or run a specific research for which they don't have resources.

While releasing such information, privacy of people and businesses should be protected. We don't want risk the chance of somebody stealing that data and abusing information in it.

This is achieved via data anonymization process - removal of all personally identifiable information while preserving patterns essential for research. Anonymized data can then be shared with the people outside of organization without endangering confidentiality or leaking business secrets.

{{% img src="data-anonymization.jpeg" %}}

For example, consider a business domain that captures all relevant events. These events, after anonymization process, might look like the one below:

  date: "2014-09-04T23:02:00",
  group: [ { ref: 1, delta: 1 }, { ref: 2, delta: 11 }]

As you can see, there isn't much personal information there. This event tells only that on September 9th something happened, involving two groups of records, with some deltas. It is just a data point now.

Can you guess, which event or type of business we are talking about?

This is how good anonymized data might look like. It contains enough information to run the necessary behavioral analytics, however all personally identifiable information was erased from it. This prevents cross-referencing of that information and tracing it back to the origins.

This anonymized event was produced from the original event by:

  • erasing all human-readable information;
  • reducing precision of times or numeric values;
  • replacing identifiers and tags with sequential numbers (1,2,3);
  • altering field names to decouple event from the domain;
  • distorting some values by introducing random noise (perturbation).

For the reference, original event could have looked like this before destructive data anonymization:

  tenant : "contsco-ebay",
  id : "contsco-2024-09-10-0334",
  time : "2014-09-04T22:57:55",
  status : "pending",
  shipping : {
    country : "Russia",
    zip : "450075",
    line1 : "Ufa ul.Zorge 66-61",
    to : "Abdullin Rinat",
    carrier : "usps"
  products: [
      id : "ksm6573er",
      name : "Kitchen Aid 6573 Empire Red",
      quantity : 1,
      price : "200 EUR"
      id : "ka1234",
      name : "Plastic shield guard",
      quantity : 10,
      price : "7.99 EUR"

In some cases, original domain could capture events on a really fine-grained level, allowing to apply data generalization - merging multiple events together into a more generic one. For example, we could sum all product sales in a day, producing a table of daily sales. This significantly reduces information quality but still keeps statistical analysis possible.

Leaking sensitive information

Diligence is required in data anonymization process. It is possible to leave some personally identifiable information in the data, even though it might not look like that at first sight.

For example, hospital records without patient names but with birthdays and cities can be cross-referenced with other data sources, potentially leaking identities.

In this case, it is better to weigh the risk of disclosure and invest extra effort into data anonymization. For example, birthdays could be randomly shifted by 30 days or rounded down to years. City names could probably be discarded, unless geographical location is required by the research.

Losing valuable information

It is possible to apply too much anonymization and discard valuable research information in the process. For example, aggregating individual sales into daily sums leads to loss of information on the shopping habits of customers. Researchers will not be able to analyze them, coming up with models for promotions and personalized discounts.

Instead of aggregation, it could be possible to hide individual customers behind artificial numeric identifiers (1,2,3...). If extra caution is needed, it would be possible to reduce the risk of cross-referencing by applying various data transformations. For example:

  • replace each sale of "Google Nexus 5" with 1 "Luxury phone" and 3 "post cards";
  • whenever a person buys 1kg of candies, multiply the amount by 2.

Applying these transformations allows to keep important patterns in the anonymized data without making it useless for research.

These are oversimplified examples, of course, but they can serve as an example of the general approach. We remove some confidential data and 'encode' the rest in research-friendly way, while keeping the key secret.


Data anonymization allows organizations to share private information with external researchers. This process has to be done carefully, balance kept between the two extremes: leaking personally identifiable information and removing bits valuable for the research.

There are no general rules of thumb here.

Published: September 13, 2014.

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