Data Breach Notification Laws: Implications for Consumers


The number of cybercrimes doubles every two years. This implies that the likelihood of being the target of a cybercrime will only continue to rise, and very quickly. Hacks become particularly concerning as consumers rely more and more on e-commerce, digital payments, and digital banking. And the tools we use for convenience – to buy products and services, to interact with service providers and with each other – all become potential security threats.


Our last blog discussed some of the implications of state statutes on data breaches on Georgia SMBs, concluding that every tier of the information network – data center, cloud provider, business, customer – is responsible to take its own protective measures. Although we should seek to do business with firms who value security, we cannot place our trust 100% in any entity; we should add layers of personal security. This is the only responsible action, considering the implications to the network.

What Happens when Your Account Information Is Compromised?

As a consumer, every time you create a contract with a digital business you create a password and decide what information you will entrust to the organization. If you are like 99% of people, you probably do not think very much about this step.


Most people use the same password for all their accounts, and if they do change their passwords at all, they do so infrequently.


Now let’s consider what happens when one of your digital businesses suffers a data breach, and they give up your first and last name, as well as your password. That password is the key to your entire life. They could jump into your email account, find communications from banks, credit cards, and other financial institutions, then steal everything you have from your digital pocket.


Sure, it would be the digital business’ fault that your password was released, but ultimately, you are responsible for all other repercussions. Credit cards and financial institutions will work with you to resolve identity theft expenses; however, the IRS can take the better part of a year to resend your tax refund to you.


Centerpoint Direct suggests that everyone take a few simple precautions that compartmentalize your sensitive information.