How Much Do Data Breaches Cost Businesses?
Data breaches cost businesses millions in fines, lawsuits, and lost customers. Learn the true financial impact and how to reduce your risk.
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New Mexico recently became the 48th state in the US to adopt data breach notification laws. The new laws take effect June 16, 2017 and will apply in all situations in which a data breach occurs, i.e., an unauthorized attempt to access unencrypted or encrypted computerized data. In addition to providing governance on how personal identifying information owned or licensed by businesses and other entities must be stored and disposed of, the New Mexico Data Breach Notification Act also provides details of how affected individuals must be notified about any data breach affecting their personal identifying information.
The Data Breach Notification Act recognizes personal identifying information as:
Whenever a data breach occurs involving the exposure of the personal identifying information of a New Mexico resident, and there is a reasonable risk of identity theft of fraud as a result of the breach, the resident will be notified as soon as possible upon the discovery of the data breach, but no later than 45 calendar days after the discovery of the data breach. Notification must be made either by US postal mail, email, or another form of substitute notification (substitute notification can be made under special circumstances only).
The notification is required to contain certain information about the data breach in accordance with the Data Breach Notification Act. Specifically, notifications must include information concerning:
When more than one thousand New Mexico residents are affected by a data breach, there is also an obligation to report the incident to the New Mexico Attorney General and the major consumer reporting agencies.
The only justifiable reasons why notification could be delayed are:
There is no time to lose once a data security breach has been identified. A majority of states and the European Union have data breach notification laws that set forth specific timeframes in which notifications need to be made. There are costly consequences for those entities who do not take notification of data breach situations seriously.
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