NY Governor Signs Bill on ID Theft

September 22 , 2005 in Industry News

Thursday, September 22, 2005

Governor George Pataki has signed legislation into law that will help prevent identity theft by requiring both public and private organizations to notify their customers when they believe a security breach has occurred to their systems that could leave confidential information open to exploitation.

“Identity theft is a gross violation of privacy that can have disastrous consequences for unsuspecting victims,” Governor Pataki said. “This legislation will help protect New Yorkers by ensuring that if there’s an incident businesses and governments will notify consumers that their personal and confidential information may have been compromised. This early notification will help potential victims protect themselves and minimize any disruption to their lives.”

The Information Security Breach and Notification Act requires that without unreasonable delay any resident of New York State be notified if their private information such as social security number, driver’s license number or financial account numbers was obtained without proper authorization. In the event of a breach, people that are impacted would be notified by mail, email, public notices on websites or through the media.

Whenever 5,000 or more residents are affected by a security breach, the State Attorney General, the State Consumer Protection Board and the Office of Cyber Security and Critical Infrastructure Coordination must be notified. In addition, the incident would be reported to consumer reporting agencies such as Equifax, Transunion and Experian. Violations of this law can result in civil action brought by the Attorney General who would seek restitution for the victims and fines on the offending entity.