By Kevin Poulsen, SecurityFocus Mar 12 2004 4:57PM
Citing California's security breach disclosure law, Texas-based Allegiance Telecom notified 4,000 Web hosting customers this week of a recent computer intrusion that exposed their usernames and passwords, in a case that experts say illustrates the security sunshine law's national influence.
The law, called SB 1386, took effect July 1st. It obligates companies doing business in California to warn their customers in "the most expedient time possible" about any security breach that exposes certain types of information: specifically, customers' names in association with their social security number, drivers license number, or a credit card or bank account number.
While similar federal legislation is stalled in Congress, attorneys have warned that SB 1386 applies to e-commerce companies nationwide if they house information on residents of the Golden State. |
