In the digital age, storing electronic data about people creates various ethical concerns requiring careful thought. These concerns center on data usage, consent, privacy, and security. The possibility of privacy invasion is one of the biggest concerns regarding ethics. There is a risk of overreach when organizations gather and keep electronic data since enormous volumes of personal data can be gathered without people’s knowledge or consent. This intrusion into their personal lives may cause them to lose their sense of independence and experience constant surveillance. Another urgent ethical issue is ensuring the security of electronically recorded data. Data breaches and cyberattacks are common, and when sensitive personal data is leaked, it can have a negative impact on people’s financial, medical, and personal lives. Organizations have an ethical obligation to put strong security measures in place to protect this information and lessen any risk. A crucial ethical rule to follow while retaining electronic data on people is to obtain their informed consent. Users need to be properly informed about the types of information being gathered, how it will be used, and who will have access to it. People are more inclined to provide their personal information freely when data-collecting techniques are transparent, and this fosters confidence between users and data custodians. The ethical use of electronic information includes how businesses use data for targeting and profiling. Concerns about manipulation and prejudice may arise when data is used to build comprehensive profiles of people for marketing, advertising, or other purposes. Responsible and ethical data usage should be mandated by ethical standards, protecting people from unfair treatment based on their personal information. To safeguard people’s privacy and the security of their data, organizations must implement tight data protection rules, reliable encryption techniques, and strict access controls. They should also place a high priority on transparency and tell users about their data-gathering procedures so that people may decide for themselves whether to share their information. To ensure the appropriate and respectful processing of electronic information about individuals in the digital age, ethical concerns should underpin every element of data handling, from collection through utilization.