Using dummy data in software testing provides a significant privacy benefit because it does not involve real personal data, thereby eliminating the risk of exposing sensitive information during the testing process. Since dummy data is fabricated, developers can freely test software functionalities without the need for extensive privacy training or worrying about privacy breaches. The IAPP emphasizes that dummy data helps to ensure that privacy principles are adhered to during the software development lifecycle, particularly in testing phases where real data could otherwise be mishandled (IAPP, "Technology and Privacy").
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