North Carolina Cybersecurity Laws You Should Know (2024)
In an increasingly digital landscape, North Carolina businesses face mounting pressure to comply with both state and federal cybersecurity regulations. Staying up to date with North Carolina cybersecurity laws is essential to protect your business, your customers, and your reputation. Below, we’ll break down the most important IT and cybersecurity laws that apply to North Carolina businesses and provide key insights and resources to help you stay compliant.
North Carolina Cybersecurity Laws
North Carolina Identity Theft Protection Act (N.C. Gen. Stat. § 75-60)
The North Carolina Identity Theft Protection Act is a critical cybersecurity law designed to safeguard consumers from identity theft. This law requires businesses to take reasonable measures to protect personal identifying information (PII) and outlines protocols for breach notifications.
North Carolina Breach Notification Law (N.C. Gen. Stat. § 75-65)
The North Carolina Breach Notification Law is one of the most important cybersecurity laws in North Carolina. It requires businesses to notify affected individuals and the Attorney General within 45 days of discovering a data breach. The notification must include the types of information exposed and the actions taken to prevent further damage.
North Carolina Electronic Commerce Act (N.C. Gen. Stat. § 66-311)
This North Carolina Electronic Commerce Act facilitates electronic transactions by validating the use of e-signatures and requiring businesses to follow security protocols for managing electronic records.
Payment Card Industry Data Security Standard (PCI DSS)
Although not specific to North Carolina, PCI DSS is a set of standards that applies to businesses accepting credit card payments. Complying with PCI DSS helps businesses in North Carolina prevent data breaches by implementing encryption, firewalls, and regular security audits.
Health Insurance Portability and Accountability Act (HIPAA)
HIPAA is a federal law, but its reach extends to North Carolina businesses in the healthcare sector. If your business handles personal health information (PHI), you must comply with HIPAA to protect sensitive health data from unauthorized access.
Gramm-Leach-Bliley Act (GLBA)
Financial institutions in North Carolina must adhere to the Gramm-Leach-Bliley Act (GLBA), which mandates data protection and consumer privacy protocols. This law affects businesses in banking, lending, and insurance, requiring them to secure customer financial data.
General Data Protection Regulation (GDPR)
While GDPR is a European Union regulation, it applies to North Carolina businesses that collect data from EU citizens. Compliance with GDPR involves gaining explicit consent for data collection and providing individuals with rights over their personal data.
8Cybersecurity Requirements for Financial Services Companies (NYDFS 23 NYCRR 500)
Businesses with operations in New York, including financial institutions in North Carolina, must comply with the NYDFS Cybersecurity Requirements. This regulation mandates strong cybersecurity measures like multi-factor authentication and continuous monitoring.
NIST Cybersecurity Framework
The NIST Cybersecurity Framework is a comprehensive set of guidelines widely adopted across critical infrastructure sectors in North Carolina. This framework helps businesses manage cybersecurity risks by focusing on core functions: Identify, Protect, Detect, Respond, and Recover.
Federal Trade Commission (FTC) Act
Under the FTC Act, North Carolina businesses must protect consumer data from unauthorized access. The FTC has been actively prosecuting companies that fail to protect customer data or mislead consumers about their data security practices.
Children’s Online Privacy Protection Act (COPPA)
If your North Carolina business collects data from children under 13, COPPA applies. This law mandates parental consent before collecting personal information from minors and imposes strict data protection requirements.
Sarbanes-Oxley Act (SOX)
Publicly traded companies in North Carolina must comply with the Sarbanes-Oxley Act (SOX), which ensures the security and integrity of financial reporting. SOX requires businesses to have strong internal controls in place to prevent data tampering.
Family Educational Rights and Privacy Act (FERPA)
FERPA protects the privacy of student educational records, making it essential for North Carolina educational institutions and related businesses that manage student data. Parental consent is required before disclosing educational records.
Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA)
The Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA) requires critical infrastructure businesses in North Carolina to report significant cyber incidents to the federal Cybersecurity and Infrastructure Security Agency (CISA) within 72 hours.
CAN-SPAM Act
The CAN-SPAM Act regulates commercial emails, requiring businesses to provide recipients with a clear opt-out option and accurate sender information. Non-compliance can lead to significant fines.
Defense Federal Acquisition Regulation Supplement (DFARS)
North Carolina businesses contracting with the Department of Defense must comply with DFARS, which outlines cybersecurity requirements based on NIST standards.
Section 5 of the FTC Act (Unfair or Deceptive Practices)
Section 5 of the FTC Act prohibits unfair or deceptive practices in data security, holding businesses accountable for protecting customer data and avoiding misrepresentation of cybersecurity practices.
More North Carolina Cybersecurity Laws to Be Aware Of
While the laws and regulations above are among the most significant, they are by no means the only cybersecurity laws that businesses in North Carolina need to follow. Depending on the specific industry or the type of data your business handles, additional federal, state, or international regulations may apply. For example, industries such as energy, defense, healthcare, and education have specialized requirements under different regulatory bodies like the Federal Energy Regulatory Commission (FERC), Defense Federal Acquisition Regulation Supplement (DFARS), and Health Insurance Portability and Accountability Act (HIPAA).
It’s crucial for businesses to regularly review their compliance with all relevant cybersecurity laws and regulations, seek legal counsel if needed, and stay updated on evolving requirements. Failing to comply with cybersecurity laws can result in severe penalties, data breaches, and reputational damage.
Conclusion
Staying compliant with North Carolina cybersecurity laws is essential for businesses across all sectors. By understanding and adhering to these regulations, businesses can protect their customers’ data, avoid penalties, and mitigate cyber risks. Be sure to consult these laws regularly and adopt industry best practices to stay ahead of potential cybersecurity threats.
If you need assistance in ensuring your business complies with these cybersecurity laws, we offer comprehensive solutions designed to keep your data secure and your operations compliant.
