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Data Breaches Remain High

Philadelphia Business Journal

September 17, 2010

The number of reported data breaches has skyrocketed since the adoption of new data and breach notification laws in 2005 and 2006 by states including Pennsylvania and New Jersey.  Already this year, 252 data breaches have been reported.  Consumers who have been victimized by the breaches have filed class-action litigation against companies and banks.

Scott Vernick said these cases become sticky because there is not a uniform federal notification law to guide companies. Instead, most states have adopted their own laws, each of which have different notification requirements. For example, the Pennsylvania’s law is more business friendly and the New Jersey statute is more consumer friendly.

"I advise my clients not just to comply with the letter of the law but the spirit of the law," Vernick said. "Not everyone follows that advice because it’s an expensive proposition. It’s not inexpensive to send out notices to everyone or offer free credit monitoring to victims. But most clients are receptive because they realize it’s all about reputation integrity."

View entire article: Data Breaches Remain High.


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