Illinois Cybersecurity Laws You Should Know (2025)
As data breaches continue to rise, Illinois businesses face increasing legal and regulatory pressure to protect sensitive information. Understanding Illinois cybersecurity laws is essential for maintaining compliance, safeguarding customer trust, and preventing costly violations. Below, we’ll cover the key state and federal cybersecurity laws that apply to Illinois businesses and how to stay ahead of evolving requirements.
Illinois Cybersecurity Laws
Illinois Personal Information Protection Act (PIPA) (815 ILCS 530)
The Illinois Personal Information Protection Act (PIPA) is the state’s primary cybersecurity law. It requires businesses that own, license, or maintain personal information about Illinois residents to implement reasonable security measures and to notify affected individuals and the Illinois Attorney General in the event of a data breach. Businesses must issue notifications within 45 days of determining that a breach has occurred.
Illinois Data Breach Notification Requirements (815 ILCS 530/10)
Under PIPA, notifications must include a description of the type of personal information compromised, the date or estimated date of the breach, and the actions taken to prevent future incidents. Companies that experience a breach affecting more than 500 Illinois residents must report the incident to the Attorney General’s Office.
Illinois Biometric Information Privacy Act (BIPA) (740 ILCS 14)
Illinois is one of the few states with a dedicated biometric privacy law. BIPA governs the collection, use, storage, and destruction of biometric identifiers, such as fingerprints, facial recognition data, and retinal scans. Businesses must obtain written consent before collecting or sharing biometric data and must establish a public retention schedule. Violations can lead to significant civil penalties, even if no breach occurs.
Illinois Computer Crime Prevention Law (720 ILCS 5/16D)
This law makes it a criminal offense to access, alter, damage, or destroy computer systems or data without authorization. It covers hacking, phishing, and data tampering and is enforced by the Illinois State Police and the Attorney General’s Office.
Illinois Electronic Commerce Security Act (5 ILCS 175)
This act validates electronic records and digital signatures in Illinois. It establishes standards for electronic transactions, data authentication, and record integrity, key elements for any business conducting online operations.
Federal and Industry-Specific Cybersecurity Regulations That Affect Illinois Businesses
Payment Card Industry Data Security Standard (PCI DSS)
PCI DSS applies to all Illinois businesses that process or store credit card transactions. Compliance requires encryption, secure access management, and routine vulnerability testing.
Health Insurance Portability and Accountability Act (HIPAA)
HIPAA applies to Illinois healthcare providers and their associates that handle personal health information (PHI). It mandates technical, physical, and administrative safeguards for data protection.
Gramm-Leach-Bliley Act (GLBA)
Financial institutions in Illinois must comply with GLBA, which requires data protection programs, employee training, and transparency regarding customer data use.
General Data Protection Regulation (GDPR)
GDPR applies to Illinois companies that collect or process data from EU citizens. It requires explicit consent, data minimization, and allows individuals to request deletion of their information.
Cybersecurity Requirements for Financial Services Companies (NYDFS 23 NYCRR 500)
Illinois financial institutions with operations in New York must comply with NYDFS cybersecurity regulations, which include annual risk assessments, encryption standards, and 72-hour breach reporting.
NIST Cybersecurity Framework
The NIST Cybersecurity Framework is widely adopted in Illinois’ manufacturing, logistics, and healthcare sectors. It helps organizations identify, protect, detect, respond to, and recover from cyber incidents.
Federal Trade Commission (FTC) Act
Under the FTC Act, Illinois businesses must implement reasonable security measures. The FTC can pursue enforcement actions for misrepresentation or failure to protect consumer data.
Children’s Online Privacy Protection Act (COPPA)
If your Illinois business collects personal data from children under 13, COPPA applies. It requires verified parental consent and restrictions on marketing or data sharing.
Sarbanes-Oxley Act (SOX)
Family Educational Rights and Privacy Act (FERPA)
Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA)
CAN-SPAM Act
The CAN-SPAM Act regulates email marketing, requiring businesses to include accurate sender information, truthful subject lines, and easy unsubscribe options.
Defense Federal Acquisition Regulation Supplement (DFARS)
Illinois defense contractors must comply with DFARS cybersecurity requirements based on NIST SP 800-171 to safeguard controlled unclassified information.
Section 5 of the FTC Act (Unfair or Deceptive Practices)
Section 5 prohibits unfair or deceptive data security practices, requiring Illinois businesses to truthfully represent and protect customer data.
More Illinois Cybersecurity Laws to Be Aware Of
Illinois is a national leader in data privacy regulation thanks to the Biometric Information Privacy Act (BIPA), which has influenced similar laws across the country. The state also promotes cybersecurity education and threat prevention through the Illinois Cybersecurity Commission, which works to strengthen statewide resilience and information sharing.
To maintain compliance, Illinois businesses should conduct annual risk assessments, encrypt sensitive data, train employees on phishing prevention, and adopt frameworks like NIST or ISO 27001.
Conclusion
Compliance with Illinois cybersecurity laws is crucial for businesses of every size. By adhering to PIPA, BIPA, and related federal standards, companies can protect consumer data, reduce liability, and strengthen their cybersecurity posture.
If your organization needs help aligning with Illinois cybersecurity regulations, we offer tailored compliance and security solutions to keep your systems safe and your business protected.
Frequently Asked Questions About Illinois Cybersecurity Laws
- What is Illinois’ main cybersecurity law?
The Personal Information Protection Act (PIPA) is Illinois’ primary cybersecurity law. It requires reasonable safeguards for personal data and breach notifications within 45 days. - What makes Illinois unique in cybersecurity regulation?
Illinois is the first state to enact the Biometric Information Privacy Act (BIPA), one of the most stringent biometric privacy laws in the U.S., allowing individuals to sue for violations. - Who enforces cybersecurity laws in Illinois?
The Illinois Attorney General’s Office enforces PIPA and BIPA, while the Illinois State Police handle criminal computer crime investigations. - Does Illinois have a safe-harbor provision for using security frameworks?
No formal safe-harbor exists, but businesses that follow standards like NIST or ISO 27001 can demonstrate compliance with “reasonable security” obligations. - Do small businesses in Illinois need to comply with PIPA?
Yes. Any organization that handles personal information of Illinois residents, regardless of size, must comply with PIPA and breach notification requirements.
Read More Cybersecurity Laws by State:
Florida Cybersecurity Laws You Should Know (2025)
Ohio Cybersecurity Laws You Should Know (2025)
Virginia Cybersecurity Laws You Should Know (2025)
North Carolina Cybersecurity Laws You Should Know (2025)
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Readers should consult qualified legal counsel for advice specific to their organization or situation.
