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California Cracks Down: Companies Must Encrypt Personal Data

The California Attorney General has issued a major data breach report, finding that more than 2.5 million people were affected by 131 reported data breaches within the state, with 56% of the breaches including disclosure of Social Security numbers.

California Attorney General Kamala Harris is calling for wider use of encryption and increased training for employees and contractors on handling personal information. InfoWorld reports that, “her office “will make it an enforcement priority to investigate breaches involving unencrypted personal information” and will “encourage … law-enforcement agencies to similarly prioritize these investigations.”  She also recommends employee and contractor training on how to handle personal information.

Imation did its own review of U.S. data breach laws in 2012, and created the “heat map” graphic below, based on the strictness of those laws. California was a forerunner in data breach laws; while most state laws are similar, requirements and penalties vary widely.

As we’ve noted before, encryption is the foundation for protecting personal data. 

Having data encrypted at the time of the breach means, under most (but not all) of these laws, (because the data is unreadable) that loss or theft of a USB device or laptop doesn’t require reporting. Also, as the California report notes, keep security awareness campaigns active so workers stay alert to the risks.

By taking a few pragmatic precautions, the majority of risks can be greatly mitigated. So the next time an employee loses a notebook or an encrypted flash drive that held protected data, if it’s been properly encrypted and managed you’ll have may well have endured a non-event.

Compliance Heat Map

Imation Compliance Heat Map. Click to view full-sized image.