Thursday, October 16, 2008

Mandatory Encryption

Several U.S. states are drafting security regulations requiring most businesses to encrypt private customer data such as payment info. This clearly reflects the beginning of a regulatory trend that isn't going to go away.

Nevada and Massachusetts have begun implementing these regulations while Washington state and Michigan are strongly considering them. What's more, since these states require out-of-state businesses operating within their borders to comply, these business will have to adapt wherever they are located, or cease business in those states. In reality, we can expect most states to jump on board sooner or later. Since data encryption can be very confusing for many businesses, in particular small businesses that don't have dedicated IT staff, one can anticipate this will be a difficult process, although it doesn't need to be.

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