In an effort to encourage businesses to encrypt data, in 2002 California became the first state to require businesses to take affirmative steps to safeguard certain types of private information and to notify persons whose private data might be compromised in the event of a security breach involving unencrypted personal information. More than 40 states have enacted new laws patterned after the California law requiring notification in the event of security breaches involving unencrypted data....

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