California SB 1386 Essay examples -- essays research papers

On July 1, 2003, calcium enacted an electronic data privacy natural law to protect residents from one of its fastest growing crimes individuality theft. SB 1386 (Civil autograph 1798.29) requires businesses to notify California residents if a security breach results in revelation of individualised electronic data. All businesses are subject to this law irrespective of size, location, or operations. Business owners should be aware of the problems associated with identity theft, the steps compulsory to comply with SB 1386, and the preventative measures available.Identity theft is a strong problem to both citizens and financial institutions. The FTC estimates that over 27.3 million Americans have been the victims of identity theft in the past five years. The U.S. financial impact 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 account ed for the highest number of incidents (39,452). In 20% of all cases, the source of the study breach involved disclosure of personal data over the internet or other electronic sources. In 55% of all cases, the identity theft resulted in credit card, bank, or loan fraud. Federal and state laws address this growing problem.The FTC provides some fortress by aggressively enforcing existing federal laws. Under the unfair and jerry-built trade practices law, a website operator must adhere to the companys own privacy policy or face prosecution for impuissance to exercise a reasonable standard of care. Reasonable care includes addressing potentiality 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 accidentally psychotherapeutic the e-mail add resses of nearly 700 consumers who were using the companys anti-depressant Prozac. Seven months later, Microsoft was targeted by the FTC for misrepresenting the security of its Passport Wallet web service. More recently, in April of 2004, rear Records faced allegations for allowing and failing to correct a breach that disclosed 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 security department intermission.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, Disclosure of Security Breaches Required by New California Privacy Legislation. http//libr ary.lp.findlaw.com/articles/ file/00008/009186/title/Subject/topic/Antitrust%20and%20Trade%20Regulation_Unfair%20Trade%20Practices/filename/antitrustandtraderegulation_2_237Whole Security, Facts on Identity Theft.http//www.wholesecurity.com/threat/identity_theft.htmlAuxillium West, California SB 1386 Personal data Privacy.http//www.auxillium.com/californiaSB1386.shtmlStrongAuth, Inc., Californias SB 1386 Frequently Asked Questions.http//www.strongauth.com/regulations/sb1386/sb1386FAQ.htmlLegislationCalifornia SB 1386http//info.sen.ca.gov/pub/01-02/bill/sen/sb_1351-1400/sb_1386_bill_20020926_chaptered.html