A data security breach occurs when an unauthorized party accesses or acquires computerized data without valid authorization from the right source. This act is against the stance of a business that guarantees integrity, confidentiality, and security of sensitive information such as social security number, name, account number, driver's license number, biometric information, and debit/credit card details. Some laws and regulations mandate business parastatals to notify the state and their customers whenever a data security breach occurs. Below, you can find more detailed information about what the law says about the data security breach notification to businesses.

The Essence of the Law

New York's data breach notification was enacted in 2005. It is an instructional guideline on how business establishments in NY should handle matters regarding the unauthorized acquisition of computerized personal data. Residents trust these entities that conduct business in New York with their private details. So, whenever something goes against the ethics of confidentiality or security, the owners of this information must be duly notified. With this, proper steps can be taken to protect against the risk of identity theft. If it eventually occurs and leads to a financial loss, you may need a NY fee-only financial planner on how to get back on your feet.

The Concerned Parties

Since the New York State Security Breach Law must be obeyed, businesses must ensure that they notify any resident of the state whose personal details have been stolen by an entity with no valid authorization. The victims are meant to be notified through mail. In a situation where affected residents are more than 5,000, a notification shall be sent to consumer reporting agencies.

There may be circumstances where the affected individuals are more than 500,000. Here, substitute notice will be used directly via the media or the company's site. Besides, business owners must send a written notification to authorities, including the NY State Division of State Police and the NY State Attorney General.

Disclosure Timing

A data security breach can result in more serious circumstances if urgent solutions are not provided. This makes the timing of notification crucial. The disclosure of a data security breach shall not in any way be delayed without any cogent reasons but made as soon as possible. According to the NY State legal instruction, concerned parties (affected residents and the state) shall be notified after data security breach discovery no later than 60 days so that the integrity of the system can be restored on time.

Incompliance Implications

Since laws are put in place for some reasons, breaking them usually attracts consequences. As a business entity, it is pertinent that you understand and comply with all the rules and regulations about data security breach notification. Failure to do this can have logical financial and legal implications, which may include fines (a huge amount) and legal sanctions by the office of the NY Attorney General. Besides, you should always stay informed to be updated on new changes in these laws.