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Information Security Obligations

BY Melissa J. Krasnow
March 27, 2007

Part One of this series addressed security procedures and practices, and document destruction. This month's installment addresses security breach notification.

The Privacy Rights Clearinghouse estimates that more than 100 million records containing sensitive personal information have been involved in security breaches. This nonprofit consumer organization has tracked these breaches on its Web site (www.privacyrights.org) beginning with the significant and well-publicized ChoicePoint breach in February 2005. As a result, more than two-thirds of states enacted security breach notification laws governing the notification that a company must make in the event of a security breach. This article outlines the requirements for providing notification of a security breach under state security breach notification laws by any company and the factors that a public company needs to take into account regarding whether to disclose a security breach under federal securities law.

State Security Breach Notification Law

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