{"id":4540,"date":"2016-04-04T11:47:33","date_gmt":"2016-04-04T16:47:33","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-operations\/business-data-breach-customer-id-theft.html"},"modified":"2024-06-06T03:04:18","modified_gmt":"2024-06-06T08:04:18","slug":"business-data-breach-customer-id-theft","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/business-data-breach-customer-id-theft.html","title":{"rendered":"Business Data Breach & Customer ID Theft"},"content":{"rendered":"\n
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Business Data Breach & Customer ID Theft<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Aviana Cooper, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

In today’s computer-based world, we tend to think of a data breach as something that only happens online. When hackers break into a database and steal passwords and personal information, that is a data breach. In fact, any security incident that results in unauthorized access to sensitive or confidential information is a data breach. If a thief breaks into a medical office and steals hard copies of patient files, it is as much a data breach as files removed from a computer.<\/p>\r\n

However, cybercrime may cause more harm because it is harder to spot. Signs of a physical burglary are easy to spot, but a customer data breach can take weeks to locate. An\u00a0IBM report released in 2023<\/a>\u00a0found that it takes an average of 277 days to locate and repair a data breach. This is time small businesses do not have.<\/p>\r\n

This article reviews the types of data breaches, ways to reduce your risks, and how to respond if a breach occurs. Your state may require you to notify the attorney general’s office, a cybercrime response office, and your customers.<\/p>\r\n

What Is a Data Breach?<\/h2>\r\n

Business data breaches go beyond mere\u00a0identity theft<\/a>. Identity theft is what happens after cybercriminals attack a business. If a business collects customer information, such as addresses, credit card numbers, or Social Security numbers, they are a target for criminals. They sell the data on the dark web to other users who commit fraud and theft.<\/p>\r\n

Any business that gathers this information must take strong security measures to protect the data. You will be liable for any breach which exposes your customers to data loss. Some common types of data theft include:<\/p>\r\n