Seven More States Implement Data Breach Reporting Statutes

The costs and legal issues resulting from the loss of customer personal information continue to grow. Data security breaches can occur from criminal hacking or something as mundane as a lost laptop computer. According to a recent study of 31 companies that experienced a data breach, the cost from each event ranged from less than $1 million to more than $22 million, not including costs in terms of lost customers, public relations problems, lawsuits, and the like. Data spills are generally irreversible and their effects indeterminate. Thus, data security is becoming a top priority for businesses and consumers. Indeed, the number of states enacting data security statutes continues to grow. On January 1, 2007, the following seven states joined twenty-seven other states in enacting data breach notification statutes: (i) Arizona; (ii) Hawaii; (iii) Kansas; (iv) Nebraska; (v) New Hampshire; (vi) Utah; and (vii) Vermont.