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As technology advances and becomes more extensively used, digital twins are likely to play an increasingly crucial role in defining the future of industry, trade, and society. Despite the stated advantages and potential of digital twin technology, certain research and implementation gaps exist, which have hindered the adoption and advancement of digital twins. This study investigates how current research on the digital twin implementations has been positioned in front of practical challenges focused on privacy and security issues. The research method adopted was a systematic literature review, employing the PRISMA approach. A total of 47 publications were identified and analyzed. The results indicate that the privacy and security challenges for digital twin implementation are complicated and may be divided into six primary groups: (1) data privacy, (2) data security, (3) data management, (4) data infrastructure and standardization, (5) ethical and moral issues, (6) legal and social issues.