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From The KDDK Advantage - September 2006

House Bill 1101 Helps Protect Hoosiers
Against Potential Identity Fraud
By Steven D. Gossman

A new Indiana law has taken steps toward protecting Indiana residents from potential identity theft where once they had to rely upon out-of-state law — if it existed. The recent enactment of House Bill 1101 requires businesses in all 50 states to notify Indiana residents when their personal information has been compromised. Before the new bill, Hoosiers were notified of a computer security breach only if the state in which it happened was required by law to make the notification. Until House Bill 1101 was enacted, Indiana did not have a law requiring this type of notification in Indiana or the other states.

The state of Indiana defines “personal information” as social security numbers, credit card numbers, driver’s license numbers, a debit card number along with its corresponding security code, and other forms of sensitive information.

Under the new law, businesses that have reason to believe an Indiana resident’s personal information has been illegally obtained from its business computer system must follow rules of disclosure by notifying individuals in Indiana by way of mail, fax, telephone or email. This applies also to cases where computerized data has been transferred to another medium such as paper or microfilm.

Failure to make the required disclosure can result in fines of up to $150,000 against the offending business. House Bill 1101 will be enforced by the Indiana Attorney General’s office.

If you have questions regarding identity fraud, contact any KDDK business attorney at 812-423-3183.

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