Mass. Data Security Law Says "Thou Shalt Encrypt"
emeraldd writes with this snippet from SQL Magazine summarizing what he calls a "rather scary" new data protection law from Massachusetts: "Here are the basics of the new law. If you have personally identifiable information (PII) about a Massachusetts resident, such as a first and last name, then you have to encrypt that data on the wire and as it's persisted. Sending PII over HTTP instead of HTTPS? That's a big no-no. Storing the name of a customer in SQL Server without the data being encrypted? No way, Jose. You'll get a fine of $5,000 per breach or lost record. If you have a database that contains 1,000 names of Massachusetts residents and lose it without the data being encrypted, that's $5,000,000. Yikes.'"
I think the /. article sub-header "some-serious-micromanagement dept" is incorrect. "Micromanagement" would be to specify a particular technical approach. The law(220kB PDF) doesn't even mention https. So, I think the legislation's level of detail appropriate: "just do it." The author of the FA seems to think this'll sell a lot of SQL Server upgrades, and if SQL Server is what someone is running to persist data, I suppose so.
Luke, help me take this mask off
So this doesn't apply to places like slashdot and facebook.
Or, indeed, to 95%+ of small ecommerce businesses. As a consultant, I've always recommended to my clients that they hand off processing credit cards (for example) to one of the services that'll do it securely without them ever seeing the card number, in order to avoid any responsibility for looking after the data.