Contact us today!
(800) 588-4430

Telesys Voice and Data Blog

Telesys Voice and Data has been serving the Richland Hills area since 1994, providing IT Support such as technical helpdesk support, computer support, and consulting to small and medium-sized businesses.

Should Companies Be Punished for Data Breaches?

Should Companies Be Punished for Data Breaches?

We’ve all seen and heard about companies and government departments that have experienced major security and data loss events. Once the event is made public, there is a media frenzy of coverage disclosing answers to questions like: Were your records compromised? How can you protect nonpublic information in the future? What should you do if you are a victim? However, as the media focus moves to another topic, the breach becomes yesterday’s news - and there is very little coverage of what repercussions and penalties those entities that were breached faced - if any.

The United States Federal Government determined that general data breach events were ‘sectoral’, meaning that each state where at least one victim resides have the jurisdiction to create and enforce laws regarding general data breaches and security. When a breach occurs, offenders are normally required to give notification to that state's Attorney General, who then determines if the state will seek further action against the offending party.

The U.S. government has only stepped-in so far as to protect two specific-categories of nonpublic information; medical information, through the Healthcare Insurance Portability and Accountability Act (HIPAA), and financial information, through the Gramm-Leach-Bliley Act (GLBA). Even though these laws were established in the late 1990s, their application to information technology is still being explored by the court system. Compared to many other types of crime, prosecuting a data breach is still new, with federal courts having just completed a trial for the first time, in 2015.

Other parts of the world have already seen the importance of a unified standard for regulating data protection, breach prevention, investigation, and violation. The European Union has already passed a ‘General Data Protection Regulation’ which goes into effect in May 2018. In addition to giving data protection authorities more power and resources to investigate and enforce the law, the fines for an offending organization are $20 million or 4% of their revenue - whichever is the larger amount of money.

The secular responsibility of data security laws has lead to some pretty extreme variations among how breaches are handled by the United States. For example, it is the discretion of the state whether they choose to penalize the offending company per violation (records lost), per series of breaches (all charged as a single breach event), or, as impractical as it sounds, per resident. Furthermore, even if they’re prosecuted for their actions that led to the breach (or inactions in some cases), only four states and the District of Columbia give their Attorney Generals the explicit right to collect restitution. Those states are Arkansas, Illinois, Nevada, and Pennsylvania.

Additionally, many states completely bar individuals and organizations from taking independent action against the entity that had been breached, even if said entity is not prosecuted by the state or ordered to pay any type of restitution.

In what could be the most severe repercussion of all the possible punishments for a data breach, is the right of a state to file an injunction against offending businesses, forcing them to freeze operations, pending an investigation of the event. For many companies, the losses associated with indefinitely halting production, combined with damage to their reputation, will exceed any fines or restitution ordered by the court.

The good news is that many states have proposed new legislation or adjusted statutes to reflect the increasingly digital climate of the business world. In fact, a few progressive states have already implemented clarifying the exact amount of time allowed before an entity must notify the Attorney General of that state, as well as setting parameters for the maximum number of records stolen before breach notification is required. For example, Rhode Island law compels breached organizations to notify the Attorney General if five hundred or more records are compromised.

The reality is that, for the most part, cybercrime and data loss laws are a bit behind the technology. In many cases, states have found that by the time an act goes through legislation and becomes a statute, the technology that the laws were created for is outdated. After all, if we can access an infinite world of information immediately, perhaps it’s time to reconsider lengthy legislative processes.

What is your opinion on data breach laws? Should the federal government have a general data loss notification policy, or are the states the best choice to determine how to handle a breach?

Comments

 
No comments yet
Already Registered? Login Here
Guest
Wednesday, 18 July 2018
If you'd like to register, please fill in the username, password and name fields.

Captcha Image

Blog Archive

Free Consultation

Sign up today for a
FREE Network Consultation

How secure is your IT infrastructure?
Let us evaluate it for free!

Sign up Now!

Free Consultation
 

Tag Cloud

Security Tip of the Week Technology Cloud Best Practices Hackers Privacy Malware Business Computing Productivity Business Email Microsoft Internet Windows 10 Hosted Solutions Software Backup Ransomware IT Services Managed Service Provider Computer Network Security Mobile Devices Smartphone Android User Tips Managed IT services Google IT Support Workplace Tips Social Media Browser Communication Outsourced IT Hardware Disaster Recovery Business Continuity Efficiency Smartphones Innovation Data Management App Data Backup Upgrade Data Holiday Cloud Computing Small Business Business Management Office Miscellaneous WiFi Server Office 365 Microsoft Office Windows Internet of Things Facebook Remote Monitoring Data Recovery Spam Artificial Intelligence Network Gmail Big Data Encryption Recovery Productivity Bandwidth Firewall Password Apps Robot Save Money Paperless Office Phishing Hosted Solution Work/Life Balance Tech Term Customer Relationship Management Office Tips Chrome Tip of the week Passwords Employer-Employee Relationship Document Management Risk Management Apple Cybersecurity Avoiding Downtime Unified Threat Management Managed IT Services Word Hacker Customer Service Mobile Device Management How To Content Filtering Saving Money Government Remote Computing Money Infrastructure Website BDR Wi-Fi Outlook Windows 10 Compliance Telephone Systems Two-factor Authentication File Sharing Settings Analytics Vendor Management Data Security Health The Internet of Things Applications IT Support Computers Alert Hacking Mobile Computing Data storage Tech Support Computing IT Management Education Operating System Cybercrime Antivirus Virtual Reality Mobile Device VoIP Managed IT Business Growth Data loss SaaS Presentation BYOD Social Budget Specifications Downtime End of Support communications Mouse YouTube Unified Communications User Patch Management Collaboration Legal Scam LiFi Regulations Retail Vulnerability Twitter Best Practice Politics Monitors Lithium-ion battery VPN Travel Identity Theft Google Drive Business Owner Websites Automation Physical Security Augmented Reality Going Green Virtual Private Network Smart Technology Taxes Assessment Marketing IBM HIPAA Running Cable Server Management Botnet Printing Mobile Security Samsung Competition Licensing Maintenance Bring Your Own Device Search Digital Payment Sports Storage Information Technology IT service Cortana Humor Virtualization Computer Care Administration Project Management Analyitcs Training IT solutions Safety Business Technology Wireless Technology Tablet Upgrades Wireless Automobile Web Server VoIP Bitcoin Update Staffing Experience Utility Computing Lenovo Microsoft Excel Unified Threat Management Cooperation Touchscreen Downloads 3D Printing Shortcut Fort Worth Administrator Disaster Cameras Digital Windows 8 Chromebook GPS Healthcare Superfish Blockchain Domains business communications systems Staff Multi-Factor Security Law Enforcement Google Maps Network Congestion Unsupported Software 5G Entrepreneur flu shot Uninterrupted Power Supply CCTV Spyware Emoji Tracking Cost Management Application Permissions Public Speaking Internet Protocol Flexibility Google Calendar Gadget Users Display Mobile Data iPhone Hacks Fort Worth IT Solid State Drive Networking Fraud How To Management VoIP streamlines Operations Heating/Cooling Legislation Hard Disk Drive Current Events Social Networking DFW IT Service Net Neutrality G Suite Firefox Processors Laptop Enterprise Resource Planning Hard Drives business network infrastructure Wearable Technology Servers Virtual Desktop Motion Sickness Motherboard Techology Internet Exlporer Supercomputer Halloween Google Docs Mobile Refrigeration Writing data services PowerPoint Software as a Service Help Desk Deep Learning Personal Information Fun Router Mail Merge Distributed Denial of Service Disaster Resistance IT Consultant Consultation IT Budget Scary Stories Vulnerabilities Consumers Social Engineering User Error IT Technicians Statistics Technology Tips Machine Learning Meetings Computer Repair Modem Address Managed IT Service Undo Proactive IT Hotspot Cleaning Notifications Geography eWaste IP Address Mirgation Bluetooth Comparison Relocation Software Tips IT Sevices Webcam Corporate Profile Alt Codes Electronic Medical Records Google Wallet Cookies Redundancy Break Fix IT Consulting Language Quick Tips Printer Crowdsourcing Dark Data Cables Environment Mobile Office Migration Black Friday Private Cloud Point of Sale WannaCry Typing Drones Nanotechnology Dark Web Data Breach Computing Infrastructure Time Management Access Control Buisness Wires Troubleshooting Chatbots Cyber Monday Error Cabling Cryptocurrency Knowledge IoT Data Warehousing Technology Laws Alerts Network Management SharePoint Identity Phone System flu season

Top Blog

Don't be Afraid to Replace Got an older PC that's causing you a lot of issues? Older technology is typically more expensive to run, and after a while, it's cheaper to simply buy a new desktop than it is to continue pouring money into something that always seems broken. It's a great time to buy wo...
QR-Code