Why San Jose Businesses Need to be Concerned about the NY State SHIELD Act
Hackers and other cybercriminals get more and more advanced by the day and it’s important for small businesses to be prepared. Companies that make less than $10 million in revenue are far less likely than larger businesses to have proper safeguards in place to protect data and communications. However, a cybersecurity breach can be far more devastating to a small business than a major corporation, depending on the scale of the breach.
The NY State SHIELD Act is an important piece of legislation related to cybersecurity protocols in New York State. Anyone who does business in the Empire State or who has customers who live there should understand what it is – even companies based in California or elsewhere. Here is a look at the NY State SHIELD Act and why it’s important to understand for San Jose businesses.
What is the NY State SHIELD Act?
The New York Stop Hacks and Improve Electronic Data Security Act – also known as the NY State SHIELD ACT – is a law passed in March of 2005 that governs the cybersecurity protocols of businesses that retain the personal data of New York residents. The SHIELD Act requires that any person or business who owns or licenses data that includes the private information of any New York State residents must implement reasonable safeguards and protocols for protecting that data. These safeguards are designed to protect the security, integrity, and confidentiality of that information.
Why do San Jose Businesses Need to be Concerned with the NY State SHIELD Act?
The New York State SHIELD Act does not only apply to companies based in New York. It applies to any businesses that have customers in New York State – or that collect or license the personal data of New York State residents. Nearly 20 million people live in New York State, and even if you are not currently in the East Coast market, you don’t want to deprive yourself of any opportunities in the future.
Personal data could be as simple as an email address. If you don’t adhere to the SHIELD Act protocols, you could be in violation of the law if a NY State resident subscribes to your newsletter and they aren’t properly protected. Violations of the NY State SHIELD Act can be quite expensive and can cost businesses up to $5,000 per offense.
How do You Know if Your Business is Compliant with the NY State SHIELD Act?
There are a few basic guidelines that the SHIELD Act sites. Businesses with less than 50 employees and less than $3 million in revenue for the past 3 fiscal years must employ reasonable, administrative, technical, and physical safeguards to protect data. Larger businesses with more than 50 employees or those who have made more than 3 million dollars in revenue have a few additional requirements. The NY SHIELD Act can be complex for those who are not the most tech-savvy. Therefore, the best way for any small business to be sure they are compliant is to hire an experienced IT partner who understands the law and the steps it requires small businesses to take.
V&C Solutions is a cybersecurity focused, managed IT services, and IT management company based in San Francisco. They provide IT services to companies all over the Bay Area and are happy to assist any San Jose businesses with their IT and cybersecurity needs. They are well-versed in the NY State SHIELD Act and can help make sure your business is properly compliant. Visit their website or give them a call today to find out how they can protect your business from hacks and data leaks.