Understanding the Maryland Personal Information Protection Act: What You Need to Know
With the rising threat of cyber-attacks, the State of Maryland has taken steps to protect its citizens’ personal information from being stolen or compromised. In 2017, Maryland passed the Personal Information Protection Act (PIPA), which establishes guidelines for how businesses must secure their customers’ sensitive data.
What is PIPA?
The Maryland Personal Information Protection Act is a law that requires businesses that collect and maintain sensitive personal information to take reasonable steps to protect that information from unauthorized access and disclosure. The law applies to any business that owns, licenses, or maintains personal information that belongs to a Maryland resident.
Personal information refers to any data that can identify an individual, such as their name, address, social security number, driver’s license number, or bank account information. PIPA requires businesses to notify their customers in case of a data breach and offers them free credit monitoring and identity theft prevention services.
What are the requirements of PIPA?
PIPA requires businesses to take reasonable measures to protect their customers’ personal information by implementing security procedures and practices that are appropriate to the nature of the data being protected.
Some of the specific requirements of PIPA include:
– Identifying the types of personal information they collect and maintain
– Assessing and addressing risks to the security and confidentiality of personal information
– Implementing measures to prevent unauthorized access, disclosure, or use of personal information
– Developing and implementing a breach response plan in case of a data breach
– Conducting regular assessments of their data security practices
– Requiring third-party service providers to implement reasonable data security measures
What are the consequences of non-compliance?
Businesses that fail to comply with PIPA may be subject to civil penalties of up to $10,000 per violation, and court-ordered damages for actual harm suffered by affected individuals. In addition, businesses may face damage to their reputation and loss of customers if a data breach occurs.
How can businesses comply with PIPA?
To comply with PIPA, businesses must take a proactive approach to data security and implement strong security practices. Some of the steps that businesses can take to comply with PIPA include:
– Conducting regular risk assessments to identify vulnerabilities and potential threats to data security
– Implementing appropriate security measures such as firewalls, encryption, and two-factor authentication
– Limiting access to sensitive data to employees who need it to perform their job duties
– Training employees on data security best practices and the importance of safeguarding personal information
– Developing and implementing a breach response plan in case of a data breach
In conclusion, the Maryland Personal Information Protection Act is an important law that businesses in Maryland must comply with to protect their customers’ personal information. By taking proactive steps to secure their data and implementing appropriate security measures, businesses can comply with PIPA and reduce their risk of data breaches and the associated consequences.
(Note: Do you have knowledge or insights to share? Unlock new opportunities and expand your reach by joining our authors team. Click Registration to join us and share your expertise with our readers.)
Speech tips:
Please note that any statements involving politics will not be approved.