security breach
Definition
A security breach happens when someone gains unauthorized access to private or sensitive information your business stores, such as customer names, credit card numbers, or social security numbers. This can happen through hacking, a stolen laptop, a dishonest employee, or even accidentally sending data to the wrong person.
Example
If a hacker breaks into your online store's database and steals your customers' credit card information, that is a security breach and you will likely be required by law to notify every affected customer.
Watch Out
Most states have laws that force you to notify customers and sometimes government agencies within a strict deadline after a breach, and missing that deadline can cost you serious fines.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.