For the record, privacy, data protection, information security and international law have officially converged with management, compliance and marketing. More than 30 U.S. states have now passed legislation in one form or another that requires businesses to notify consumers if an actual or potential breach of data security may lead to the compromise of personally identifiable information. This comes on the heels of several years of the government tightening its own policies regarding data security breaches and instances of compromised security.
Recently, the Office of Management & Budget, which oversees U.S. federal agencies, announced a tougher policy for government, requiring agencies to follow the security procedures checklist prepared by the National Institute of Standards and Technology (“NIST”) to protect data. An internal OMB memo recommends that data on mobile computers and devices carrying agency data be encrypted, and suggests two-factor authentication (one being separated from the actual computer obtaining access to the data).
As noted in prior issues of Legal Bytes, requirements and compliance obligations for commercial enterprises doing business across state lines and national boundaries vary, although many have common themes. If you are concerned—and you should be—contact us. We can help you sort out your current compliance obligations and help you keep track of the changing privacy and data protection landscape, both domestically and internationally. Even if you choose not to inject your views into the regulatory process, you must keep abreast of developments or risk action by consumers and regulators.