Lieff Cabraser Civil Justice Blog
Data Security Breaches

New Federal Bill Seeks Jail Time for Nondisclosure of Data Breaches

Wired reports on a new bill introduced in the Senate that wants to make nondisclosure of data breaches a jailable offense nationwide. Some states already have statutory penalties for companies that seek to hide data breaches, but the new bill would set a uniform approach for all 50 states. Under the current terms of the bill, failure to come forward within 30 days of a breach could lead to up to 5 years in prison for executives who attempt to cover up attacks leading to the improper exposure of private personal data.

As Wired notes, “The bill’s prospects are a little muddied, especially given that it basically echoes a 2014 bill that tried to do the same in the wake of the massive hack Target disclosed that year.” Even so, a series of high-profile breaches that have exposed detailed data on hundreds of millions of consumers in the U.S. may be creating a new climate where heightened concerns about security might make for a much-needed updating of the relevant laws.

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