AGENTS BACK FINANCIAL NOTIFICATION:

Businesses must notify New Yorkers when their financial and personal information has been compromised, under a measure that has become law in New York.

The Information Security Breach and Notification Act, which takes effect in December, will require businesses that maintain computerized customer records to notify consumers whose information has been violated.

The bill has had the support of the Independent Insurance Agents & Brokers of New York Inc. since its introduction by State Sen. Charles J. Fuschillo Jr. (R-Freeport) and Assemblyman James F. Brennan (D-Kings).

According to the bill’s language, “unauthorized acquisition of computerized data which compromises the security of personal information maintained by a state entity, person or business” will require that customers be notified through a variety of methods, including in writing and electronically.

The law allows businesses to determine the extent of the violation, but would also hold them accountable for not following the necessary steps of victim notification. Failure to inform consumers whose information has been breached is punishable by a fine of up to $150,000.

Topics Agencies