Security Data Breach Notification: California Law Updates

Recently, there has been a crackdown on companies getting personal information from their consumers. This personal information includes factors such as age, income, and members in the household. These types of personal information are also referred to as personal identifying information, or PII. It is very important for consumers to understand their privacy rights, and seek justice if there has been unauthorized use of their information. if you believe that your personal data has been breached, get in touch with an experienced data breach privacy lawyer from Heidari Law Group today.

California’s Push for Stronger Consumer Privacy Laws

In recent years, states across the U.S. have introduced various laws aimed at protecting consumer privacy. These legislative efforts have focused on restricting companies from collecting and utilizing personal information without explicit permission, citing concerns over potential invasions of privacy. California, in particular, has been at the forefront of these changes, advocating for stringent regulations to safeguard residents’ data.

The Passage of the Security California Consumer Privacy Act Amendments

On September 11, 2019, California made a significant step forward with the passage of a pivotal bill addressing consumer data privacy. California Attorney General Xavier Becerra introduced this legislation to the California General Assembly to address gaps in the existing California Consumer Privacy Act (CCPA). Known as the California Consumer Privacy Act Amendments (CCPA Amendments), this law aimed to enhance the original CCPA, which had been in place for a few years but was viewed by many lawmakers as insufficiently rigorous. Read more about California’s CCPA Amendments to understand how they affect consumer rights.

What Constitutes “Security Personal Identifying Information” Under AB 1130?

With the passage of Assembly Bill 1130 (AB 1130), California expanded the scope of what is considered “personal identifying information” (PII). This now includes a person’s first and last name, social security number, driver’s license, and medical information. In addition, digital identifiers like email addresses, usernames, passwords, and security questions have also been classified as PII. Under this law, any public record data is not deemed as personal identifying information, creating a clear boundary between public and protected data.

Q: What Types of Information Are Considered Personal Identifying Information?

A: The CCPA Amendments have broadened the definition of PII to include unique personal identifiers. This includes biometric data, such as fingerprints and eye scans, along with tax identification and passport numbers. By expanding these definitions, California lawmakers aim to ensure that residents’ data remains private and secure, preventing unauthorized access and potential misuse.

The Expanding Scope of Security Privacy Protections in California

California’s privacy protections didn’t stop at just names and social security numbers. The 2019 law expanded to include biometric information—such as fingerprints and eye scans—as well as tax identification and passport numbers. The decision to include these additional identifiers demonstrates California’s commitment to comprehensive privacy protections for its residents. You can read more about this from sources such as NBC Los Angeles and Fox 11 Los Angeles.

Why Stronger Privacy Laws Matter

As digital data collection grows, so does the need for robust protections against data misuse. Privacy advocates argue that comprehensive privacy laws help protect consumers from identity theft and unauthorized data sales. By limiting the data that companies can collect and expanding definitions of PII, California aims to set a standard for other states considering similar laws.

The specific California Data Security Breach Notification law reads:

“California law requires a business or state agency to notify any California resident whose unencrypted personal information, as defined, was acquired, or reasonably believed to have been acquired, by an unauthorized person. (California Civil Code s. 1798.29(a) [agency] and California Civ. Code s. 1798.82(a) [person or business].)”

“Any person or business that is required to issue a security breach notification to more than 500 California residents as a result of a single breach of the security system shall electronically submit a single sample copy of that security breach notification, excluding any personally identifiable information, to the Attorney General. (California Civil Code s. 1798.29(e) [agency] and California Civ. Code s. 1798.82(f) [person or business].)”

This above law took effect starting January 1st 2020.

What Is a Data Breach?

In today’s digital age, data breaches have become a growing concern for companies, especially those handling sensitive customer information. Under California’s data security breach law, a data breach is defined as unauthorized access to a company’s computerized data containing personally identifiable information (PII) of specific consumers. When a hacker bypasses a company’s security protocols to access private data, it is considered a data breach. Such incidents put consumers’ sensitive information, including names, addresses, social security numbers, and financial details, at significant risk.

How Do Data Breaches Happen?

Data breaches can occur in various ways, each posing unique risks. Companies must understand these methods to prevent unauthorized access. Here are some common scenarios where a data breach might happen:

1. Unauthorized Access to Information
   When a business has a reasonable belief that an unauthorized person has gained access to its information systems, it may have suffered a breach. This type of intrusion can occur through various means, such as phishing scams or stolen login credentials, allowing hackers to infiltrate the company’s network and access personal data.
2. Detection by Security Programs
   Security systems are designed to detect and alert companies to any suspicious activity. If the company’s security program identifies signs of unauthorized hacking, such as unusual login attempts or access from unfamiliar IP addresses, it indicates a potential breach. At this point, the business must take action to protect sensitive data from further exposure.
3. Compromised Encryption Keys
   Encryption keys or security passwords protect sensitive information by ensuring that only authorized individuals can access it. However, if these keys are compromised, it raises a red flag, indicating that unauthorized users might now have access to confidential data.

For a real-world perspective on recent data breaches, consider reviewing cases reported by NBC LA, Fox 11, and ABC 7. These outlets frequently cover data breach incidents and provide insights into how these breaches impact both companies and consumers.

FAQs About Data Breaches

Q: What is a data breach?
A: A data breach is an unauthorized intrusion into a company’s computer systems to access personal information belonging to customers, often for malicious purposes.

Q: How common are data breaches in California?
A: Data breaches are increasingly common, with California often seeing a high rate of incidents due to the large concentration of businesses and tech companies. For recent statistics and data breach reports, ABC 7 provides frequent updates on this issue.

Q: What can businesses do to prevent data breaches?
A: Companies can implement multi-layered security protocols, regularly update security software, and educate employees on recognizing phishing and other forms of cyberattacks.

What Steps Should Businesses Take to Protect Personal Information?

As privacy regulations tighten, businesses that collect personal information face increasingly stringent requirements. It’s not enough to merely gather data; companies must demonstrate they have valid contracts with any third-party partners involved. These contracts should clearly identify who has access to sensitive information, and both parties must be able to justify their need for this access. Furthermore, the purpose of collecting personal information must be explicitly defined, ensuring it aligns with legitimate business needs and regulatory standards.

Implementing Security Measures for Personal Data

To safeguard personal information effectively, businesses must establish robust security procedures and practices. This might include measures like shredding physical documents, securely deleting outdated digital files, and using advanced encryption methods to make data more resistant to unauthorized access. Each company’s security protocols should reflect its unique operational needs, though all businesses are expected to “reasonably” protect the data they collect.

What Does “Reasonably” Protect Mean? “Reasonable protection” can vary widely but typically involves a blend of physical, administrative, and technological safeguards. This approach might encompass regular audits of security practices, employee training on data privacy, and investing in up-to-date cybersecurity tools.

For businesses unsure of what “reasonable” means in their specific context, resources like NBC LA provide helpful guides and news on current privacy laws. Similarly, ABC7 News often reports on the latest data breach cases, offering insight into practices that might better secure sensitive information.

Best Practices for Data Handling

Some best practices that companies can consider include:

• Routine Shredding and Disposal: Ensuring that all physical documents containing sensitive information are shredded before disposal.
• Data Encryption: Encrypting digital documents and databases to make it difficult for unauthorized parties to decipher the data.
• Regular Data Audits: Implementing regular audits to review the security status of data storage and handling processes.

For additional statistics on the rise of data breaches and the importance of these security measures, see recent studies on Fox 11 which detail the increase in data breach incidents and provide examples of businesses facing penalties for insufficient protection practices.

By taking these steps and staying informed on evolving regulations, businesses can better manage the risks associated with collecting and handling personal information, fostering trust and protecting their reputations in the process.

What Is a “Business”?

When the law states that businesses must protect this information, the definition of business refers to sole proprietorships, corporations, partnerships, and any type of Institution. This is a very broad category that includes almost every entity. A “consumer” is considered to be any California resident. A California resident should be domiciled in California, and someone who has left the state temporarily is still covered under this law.

But some businesses do not need to adhere to the California breach notification law. These businesses include healthcare providers, specific financial institutions under the California Financial Information Privacy Act, and businesses that are regulated by federal laws.

If there is a data breach, businesses need to send out notices to California residents if more than 500 California residents have been affected. Another way a resident can check if their data has been breached is by checking the data security breach search page. Once visitors go onto to the site, they can type in the organization name, and the date of the breach range. They can then check if their data has in fact been breached or used in any way.

How Should a Company Notify Its Consumers?

The California Data Breach Law requires that these businesses give written notice to their consumers if there has been an unauthorized data breach. Businesses have to give notice to those people whose data has in fact been breached. The company needs to send out these notices to the consumers as soon as possible. Before sending out these notices, the companies should notify law enforcement. If there has been more then 500 people whose data has been breached in one instance, the business is also required to notify the California Attorney General. The notice of data breach sent to consumers must include:

• The contact information of the business
• The date of when the breach occurred
• The type of personal identifying information that has been taken
• How the breach incident occurred
• Services to mitigate the identity breach
• Identity theft provision services
• what the company has done to prevent further breaches (optional)
• What individual should now do moving forward (optional)

Besides these above factors, there are several other factors that are required depending on the situation. It is important to seek the advice of an experienced business attorney to determine how to notify consumers properly to avoid any future lawsuits.

What This Means for You

If you are a consumer who has recently had your data breached, you should seek the advice of an experienced business attorney immediately. You can request a free consultation at our firm at Heidari law to determine if your data has in fact been breached, and what your legal options are. We have offices located in all major cities, including Los Angeles, Irvine, Las Vegas, and Sacramento.

You are a business and believe you fall under this law, contact our attorneys for assistance on securing data and for legal assistance navigating through a data breach. Privacy laws are constantly changing, and so is important for businesses to keep themselves informed of any new laws. California and Nevada have been pushing for privacy laws in the recent years, and so it is always evolving. New requirements are constantly being placed on businesses. It is important to have a legal team you can call on for advice on how to proceed with consumer privacy, protection, and security issues.

***Disclaimer: This blog is created by Heidari Law Group for educational purposes. This article provides a general understanding of the law. It does not provide specific advice. By using this site and reading through this blog, there is no attorney-client relationship created between you and any member of Heidari Law. Further, due to the constant change of the law, some parts of the information above may no longer be good law.