May 25 2009
Tough new Massachusetts laws to impact firms that handle personal data of residents
Tough new Massachusetts laws about data breaches that go into effect in January impact any firm handling personal data of Massachusetts residents.
Are you doing enough to protect your clients and your business from theft or mishandling of client private data? Are you absolutely certain?
According to the Privacy Rights Clearinghouse, more than 250 million records containing personally identifiable information have been compromised in the United States since 2005.
Some states, like Massachusetts, have strict guidelines for reporting data security breaches to clients. In other states, the rules are less stringent, but even so, no one wants to be responsible for potentially exposing their clients to identity theft.
Firms that accept credit card payments, whether online or off, have already had to consider the ramifications of breaches due to the many and much publicized hacks of credit card processing systems. But the new Mass law impacts any organization that has client private data of a Massachusetts citizen. That means professional services firms like accountants, lawyers, investment advisors and insurance brokers, who often handle information like Social Security number, driver’s license or state ID numbers, and financial account numbers. That means any firm, regardless of location, that handles data of Mass citizens.
You think you’re ready.
You’ve got some security measures in place. Your IT resources have deployed firewalls, anti-virus and anti-hacker tools to lock down your computers. Everything seems under control. But are you sure? Are the tools they’ve deployed really adequate to protect your clients and your firm from clever cyber criminals?
It’s not just hackers cracking into systems and stealing files. Employees leaving work on desks, bringing work home or emailing data without encrypting it can expose sensitive personal information. No matter how it happens, the firm is responsible for informing its clients and that costs in time, money, and damage to the firm’s reputation.
Sure, it’s a cliche, but when it comes to safeguarding personal information, an ounce of prevention really is worth a pound of cure. Think about it. You take your car in for preventative maintenance on a regular basis. Why wouldn’t you do the same smart thing for your business? Data breaches are preventable, and the first step to protecting your clients and minimizing your risk is to understand your vulnerabilities.
If your firm is among those impacted by the new Mass law, GuideMark offers three free tools to help you learn what you need to do to protect client information and comply with the law.
- Our free self-assessment helps you gauge your vulnerability for a data security breach.
- We’ve partnered with The McLane Law Firm to develop a free educational seminar where you can learn more about how to limit your exposure to data theft, protect client information and comply with the law. The next seminar will be held June 4th from 10 am to noon at Trade Center 128 in Woburn.
- If you can’t make the seminar, join us for a one-hour webinar at noon on June 11th that covers much of the same critical information.





