Sensitive data refers to any information that must be protected from unauthorized access due to its confidential nature. This includes personal details like Social Security numbers, financial records, and medical histories. If such data is exposed, it can lead to identity theft, financial loss, or privacy violations. Organizations often implement strict security measures to safeguard sensitive data. This can involve encryption, access controls, and regular audits. Protecting sensitive data is crucial for maintaining trust with customers and complying with regulations like the General Data Protection Regulation (GDPR) or the Health Insurance Portability and Accountability Act (HIPAA).