In recent years, media coverage of data breaches has become ubiquitous. Hardly a week goes by before another company announces that its customer information has been leaked or stolen. No company is immune. Banks; hospitals; universities; federal, state and local governments have all experienced data breaches. See “Chronology of Data Breaches, Privacy Rights Clearinghouse,” www.privacyrights.org/data-breach/new. In 2012, there were at least 14 reported breaches in New Jersey that affected thousands of customers, with surely many more unreported incidents. While any breach has the potential to be dangerous and disruptive to customers, in truth, not all breaches will result in identity theft. However, once customers’ personal information is no longer secured, identify theft becomes a real concern.
The primary remedy for a breach of customer information is timely notice. The hope is that if customers are aware that their information has been breached, action can be taken to avoid the most serious repercussions caused by identity theft. Recognizing the importance of being timely notified of a breach, in 2005, New Jersey joined a growing list of states that have passed a data breach notification law.
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