The law, along with a number of other storage security regulations coming down the pipeline, is forcing companies to recognize the importance of securing not only data in transit, but also data at rest, agrees Serge Plotkin, the CTO of storage security startup Decru Inc.
"History repeats itself," he says. "Five to ten years ago, everyone was attaching happily to the Internet without firewalls... Now its considered irresponsible not to use a firewall even in very small businesses... I believe the same thing will happen in storage."
Encryption is certainly one of the best ways for companies and institutions to avoid potential lawsuits in the wake of the law's implementation, says Scott W. Pink, the deputy chairman of the American Bar Associations Cyber-Security Taskforce and an attorney with the Gary Cary law firm based in Sacramento, Calif. "The more security the industry puts in place, the less litigation theres likely to be," says Pink.
Of course, the problem doesnt exist only in California. On nearly a weekly basis, news leaks out of another major data-theft case. This past February, for instance, hackers accessed eight million American Express, MasterCard, and Visa credit-card numbers through a third-party processor; and last month, the University of Texas had to notify 55,000 students and employees that their Social Security numbers and email addresses had been hacked.
U.S. Senator Dianne Feinstein is currently in the process of evaluating whether or not the law should be elevated to the federal level. A spokesman for the senator refused to comment on the matter, saying its still under consideration.
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