CA Law Demands Public Disclosure Of Break-Ins

AuntieMisha writes "BusinessWeek has an article about a new California law passed that requires businesses to publicly disclose information about break-ins. The only loophole is if there is an ongoing investigation and if the disclosure would harm the investigation. IMHO Big companies will have the resources to set up investigations even when they know it is unlikely to get anywhere, and business will go on as usual for them. Small businesses that don't have the resources to maintain an investigation will have their reputations ruined. Also, the article doesn't mention the contingency where a break-in occurs because of a software/hardware issue for which there is no released technical solution (i.e. anyone else who has software X would be susceptible to the same type of break-in). This is not good."

Comments

But how do you enforce this?

[Halo-]

If you don't report a break-in, how is anyone gonna know it happened? (Unless an employee narcs, at which point it becomes a messy paper/email/word-of-mouth trail)

Seriously, it's not like the CA government is gonna be able to "audit" companies like they do if they suspect fraud in other self reported areas. (Like tax fraud, emissions, etc...)

Could have the opposite effect..

[EvilStein]

Companies might just pour millions into Microsoft's own services. After all, Microsoft has pledged to make security its #1 priority these days.

Microsoft may just sell companies its own security and consulting services, or companies will simply hire any one of the thousands of unemployed paper MCSE drones that are now floating around.