UBP blog

07/15/2009

Is your third-part service provider in compliance with 201 CMR 17.00?

In recent years, there have been multiple high profile data breaches involving third-party providers of credit card and other financial services. One of the many ways identity thieves access personal information these entities maintain is by hacking into non-password protected, unencrypted databases. Under the Massachusetts identity theft law 201 CMR 17.00, companies that work with these third-party providers will be liable for any data security breach involving personal information of Massachusetts residents if they did not take any action to ensure that the provider was operating in full compliance with the law.

For small and mid-size businesses that work with online credit card processing companies, it is no longer safe to just assume that these companies are in compliance with the law. You must now take a look deeper and investigate them to ensure that they are in compliance. It is vital as well to make sure that you include in all contracts with these providers an explicit requirement that they maintain data security safeguards compliant with 201 CMR 17.00.

Although January is still several months away, the time to start preparing for Massachusetts law 201 CMR 17.00 to go into effect is now. That means identifying all records of personal information on any Massachusetts resident within your organization and bringing together an inter-departmental team to craft your organization’s Written Information Security Plan.

To help companies out with their 201 CMR 17.00 compliance efforts, Universal Benefit Plans will hold a free 35 minute educational webinar July 21st at 11:00 am.

Register to attend at: https://www2.gotomeeting.com/register/660426874

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