California SB 1386 Essay examples -- essays research papers

On July 1, 2003, California enacted an electronic data secrecy impartiality to protect residents from one of its fastest growing crimes identity theft. SB 1386 (Civil Code 1798.29) requires businesses to notify California residents if a security breach results in disclosure of personal electronic data. All businesses are subject to this law regardless of size, location, or operations. Business owners should be aware of the problems associated with identity theft, the travel required to comply with SB 1386, and the preventative measures available.Identity theft is a significant problem to both citizens and financial institutions. The FTC estimates that over 27.3 million Americans fool been the victims of identity theft in the past five years. The U.S. financial cushion is staggering in 2002 alone, losses were estimated at $48 billion to financial institutions and $5 billion to victims. The FTC reviewed trends from 214,905 cases reported in 2003, and California accounted for th e highest number of incidents (39,452). In 20% of all cases, the source of the information breach involved disclosure of personal data over the internet or other electronic sources. In 55% of all cases, the identity theft resulted in acknowledgment card, bank, or loan fraud. Federal and state laws address this growing problem.The FTC provides approximately protection by aggressively enforcing existing federal laws. Under the unsportsmanlike and deceptive trade practices law, a website operator must adhere to the companys own seclusion policy or face criminal prosecution for failing to exercise a reasonable standard of wangle. Reasonable care includes addressing potential system vulnerabilities such as viruses and encrypting personal information so that it cannot be viewed. The FTC recently ordered several large corporations to implement stronger privacy controls after breaches exposed personal information.In January of 2001, Eli Lilly settled with the FTC after unintentionall y releasing the e-mail addresses of nearly 700 consumers who were using the companys anti-depressant Prozac. sevener months later, Microsoft was targeted by the FTC for misrepresenting the security of its Passport Wallet web service. More recently, in April of 2004, Tower Records faced allegations for allowing and failing to correct a breach that unwrap consumer information including names, billing and shipping addresses, email addresses, phone numbers, and ... ... 2003.http//www.consumer.gov/idtheft/IDT_CY03/California%20CY2003.pdfJanuary 18, 2002, Eli Lilly Settles FTC Charges Concerning certificate Breach.http//www.ftc.gov/opa/2002/01/elililly.htmAugust 8, 2002, Microsoft Settles FTC Charges Alleging False Security and Privacy Promises.http//www.ftc.gov/opa/2002/08/microsoft.htmApril 21, 2004, Tower Records Settles FTC Charges. http//www.ftc.gov/opa/2004/04/towerrecords.htmArticlesCheryl A. Falvey, apocalypse of Security Breaches Required by New California Privacy mandate. ht tp//library.lp.findlaw.com/articles/file/00008/009186/title/Subject/topic/Antitrust%20and%20Trade%20Regulation_Unfair%20Trade%20Practices/filename/antitrustandtraderegulation_2_237 integral Security, Facts on Identity Theft.http//www.wholesecurity.com/threat/identity_theft.htmlAuxillium West, California SB 1386 in-person Information Privacy.http//www.auxillium.com/californiaSB1386.shtmlStrongAuth, Inc., Californias SB 1386 Frequently Asked Questions.http//www.strongauth.com/regulations/sb1386/sb1386FAQ.html ordinanceCalifornia SB 1386http//info.sen.ca.gov/pub/01-02/bill/sen/sb_1351-1400/sb_1386_bill_20020926_chaptered.html