On January 1, 2020, the California Consumer Privacy Act (CCPA) took effect, giving state residents greater control over the use and sale of their personal data and introduced. In this post we explore the CCPA data security requirements for businesses and the consequences of failing to adequately protect consumer data.
What is the California Consumer Protection Act?
California already had some of the strictest privacy laws in the United States, but CCPA took consumer privacy a step further. CCPA has been likened to the EU’s General Data Protection Regulation (GDPR), as it gives California residents similar rights over the personal data collected and used by companies.
CCPA requires companies to inform California residents about the categories of data that are being collected, at or before the point of collection. There is a right to access all personal information held by a company and find out with whom personal data has been shared. Consumers have a right to opt out and prevent their personal data from being sold and can request that their personal data is deleted. Consumers also have a right to equal services and prices, and cannot be discriminated against, or denied goods or services or levels of services if they opt out of the sale of their personal data.
Who Must Comply with CCPA?
On January 1, 2020, CCPA applies to all companies that do business with California residents, regardless of where the company is based, if one of the following conditions is met:
- The company generates revenues of at least $25 million each year; or
- The company collects, purchases, sells, or shares the personal data of at least 50,000 people; or
- The company generates at least 50% of its revenues from the sale of personal data
CCPA does not apply to insurance institutions, agents, and support organizations, which are covered by different state laws.
CCPA Data Security Requirements
CCPA does not specify what security measures need to be implemented to protect the personal data of California residents; however, businesses do have a duty to implement reasonable security measures based on the level of risk, in accordance with other state laws. Under CCPA, penalties can be applied for a “violation of the duty to implement and maintain reasonable security procedures and practices.”
Since legal action can be taken against companies over a breach of personal data, it is important for companies to ensure appropriate measures are taken to protect data and prevent data breaches.
CCPA does not specify what controls need to be implemented nor what constitutes “reasonable security procedures and practices.” A 2016 Data Breach Report released by the California Attorney General acts as a good guide. It includes a list of 20 controls that the Center for Internet Security says are requirements to protect against known cyberattack vectors. These should therefore serve as guide to the CCPA data security requirements. They are:
How TitanHQ Can Help You Comply with CCPA Data Security Requirements
Email is the most common attack vector used for phishing and malware distribution, so safeguards need to be implemented to keep email systems secure. Phishing attacks often have a web-based component where credentials are harvested, and many malware downloads occur via the internet. Internet controls are therefore also essential to protect against cyberattacks and data breaches. Due to the risk of attack via email and the web, email and browser protections are listed as the first of the foundational Center for Internet Security controls.
This is an area where TitanHQ can help. We have developed two powerful cloud-based security solutions that can help you meet CCPA data protection requirements.
SpamTitan Email Security is a powerful spam filtering solution that keeps inboxes free from email-based threats. SpamTitan incorporates multiple layers of anti-spam and anti-phishing controls, including Sender Policy Framework (SPF), DMARC, SURBL’s, RBL’s Bayesian analysis and more. SpamTitan uses twin antivirus engines to block known malware threats and sandboxing to protect against breaches and data loss from zero-day threats.
WebTitan is a cloud-based DNS filtering solution that protects against the internet component of phishing attacks and stops wired and wireless network users from accessing malicious websites. These solutions will help you meet your email and web security responsibilities and protect your organization from phishing attacks, malware and ransomware downloads. Together they will help you prevent costly data breaches and avoid the resultant CCPA fines.
Penalties for Noncompliance with CCPA
Each intentional violation carries a maximum penalty of $7,500 per record. Unintentional violations carry a penalty of $2,500 per record.
There is also a private cause of action in CCPA. In the event of a data breach, victims of the breach can sue for a CCPA violation. Statutory damages of between $100 and $750 by each California resident affected by the breach. Alternatively claims can be made for actual damages, whichever is greater, along with other relief determined by the courts. Class action lawsuits are also permitted under CCPA. The California Attorney General can also take legal action against the company rather than permitting civil suits to be filed.