What’s worse than a massive data breach? Not reporting it.
Yahoo is learning that lesson the hard way. The Internet giant is coming under intense scrutiny for only just revealing that at least 500 million of its user accounts were stolen back in 2014. It now faces multiple class action lawsuits and its sale to Verizoncould be in danger.
The lessons learned don’t apply just to big corporations: any small business that collects customer information also has important obligations to its customers. In fact, 47 states and the District of Columbia each have their own data breach laws. (Only Alabama, New Mexico, and South Dakota do not.)