California's AB 700
Did you notice about 3 years ago that companies suddenly started
getting very public about computer breakins and thefts?
Ever wonder why?
The answer is California's Assembly Bill 700.
Here is the Legislative Counsel's Digest entry for
it.
As they say on the net, IANAL (I Am Not A Lawyer), but I
can give you a general feel for what AB700 entails.
Are You Storing AB700 Information?
CA AB700 says that any person or organization that stores certain
types of personal information must notify people if the security
of that information may have been compromised.
(e) For purposes of this section, "personal information" means an
individual's first name or first initial and last name in combination
with any one or more of the following data elements, when either the
name or the data elements are not encrypted:
- Social security number.
- Driver's license number or California Identification Card number.
- Account number, credit or debit card number, in combination
with any required security code, access code, or password that would
permit access to an individual's financial account.
AB 700 has Teeth, Very Big Teeth
If you are storing AB700 information and you suspect a security breach,
you must notify every account holder whose information might
have been disclosed.
Failure to notify can result in a fine of $10,000 per account.
Shortly after AB700 went into effect, a Wells Fargo marketing consultant
took home account info on 50,000 of their largest depositors.
His laptop was stolen. The next morning, Wells Fargo was all
over the news telling everyone what had happened.
Why? Potential fines of $500,000,000, that's why.
Since then, there have been several "leaks" that make that one
look like child's play. Recent favorites include the release
of 26,000,000 (yes, 26 million) records by the Veteran's Administration,
and 40,000,000 credit card numbers by CardSystems Solutions,
a clearing house for credit card transactions.
Update: we have a new winner, Folks!
On March 29, 2007, ComputerWorld reports that
TJ Maxx decided to take it to the max and expose
45.6 million of their customers
to identity theft and credit card fraud.
Way to go, TJ Maxx!
We Can Help
We can help you make a data audit to see if you are affected by
AB700 and, if so, what you can do about it.
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