South Carolina Cybersecurity Laws You Should Know (2025)
In an increasingly digital landscape, South Carolina businesses face mounting pressure to comply with both state and federal cybersecurity regulations. Staying up to date with South 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 South Carolina businesses and provide key insights and resources to help you stay compliant.
South Carolina Cybersecurity Laws
South Carolina Insurance Data Security Act (S.C. Code § 38-99)
The South Carolina Insurance Data Security Act applies to insurers, brokers, and other licensees authorized under state law. It requires businesses in the insurance sector to implement a comprehensive information security program and report cybersecurity events to the Department of Insurance within 72 hours of discovery if the event affects 250 or more South Carolina residents or has the potential to cause material harm.
This law is modeled after the NAIC Insurance Data Security Model Law and was the first of its kind in the U.S. It establishes strict guidelines for breach notification, risk assessment, third-party service provider oversight, and incident response planning.
Reference: South Carolina Code of Laws – § 38-99-40
South Carolina Data Breach Notification Law (S.C. Code § 39-1-90)
This law requires any business that owns or licenses personal identifying information (PII) of South Carolina residents to notify those individuals of a data breach without unreasonable delay and to also notify the Consumer Protection Division of the Department of Consumer Affairs when required.
Notification must include the type of information compromised, the date of breach (if known), and what measures are being taken in response. The law also requires coordination with consumer reporting agencies if more than 1,000 people are affected.
Reference: South Carolina Code of Laws – § 39-1-90
South Carolina Technology Security Act (H.4393 – Pending Legislation)
This proposed bill would prohibit state agencies, school districts, and public institutions from purchasing or using equipment or software from certain companies deemed security risks, such as Huawei, ZTE, and Hikvision. If passed, the law would reinforce supply chain security for government contractors and any vendor doing business with the state.
Reference: South Carolina House Bill 4393
Federal Cybersecurity Laws That Apply to South Carolina Businesses
Health Insurance Portability and Accountability Act (HIPAA)
HIPAA applies to South Carolina healthcare providers, insurance companies, and any businesses handling protected health information (PHI). It mandates strict guidelines for electronic data security and patient privacy.
Gramm-Leach-Bliley Act (GLBA)
South Carolina financial institutions must follow GLBA regulations, which require companies to explain how they share customer data and to safeguard sensitive information.
Payment Card Industry Data Security Standard (PCI DSS)
Any South Carolina business that processes credit card transactions must comply with PCI DSS to protect cardholder data. This includes using encryption, firewalls, and regular vulnerability testing.
Federal Trade Commission (FTC) Act
Under Section 5 of the FTC Act, businesses are prohibited from engaging in unfair or deceptive practices, including those related to data security. Companies that mishandle user data or misrepresent their cybersecurity practices may face enforcement actions.
Cybersecurity Requirements for Financial Services Companies (NYDFS 23 NYCRR 500)
Suppose your South Carolina business operates in New York or serves New York-based clients. In that case, you may need to comply with the New York Department of Financial Services cybersecurity regulations, which require strong security programs, access controls, and incident response plans.
Children’s Online Privacy Protection Act (COPPA)
Businesses in South Carolina that collect data from children under 13 must comply with COPPA, which includes obtaining verifiable parental consent and limiting the use of collected data.
Sarbanes-Oxley Act (SOX)
Publicly traded companies in South Carolina must follow SOX regulations to protect financial records and internal controls, including cybersecurity systems that safeguard financial data.
Family Educational Rights and Privacy Act (FERPA)
If your business or institution manages educational records, FERPA compliance is essential. Schools must protect student data and obtain parental or student consent before sharing information.
Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA)
South Carolina businesses involved in critical infrastructure sectors must report certain cyber incidents to the Cybersecurity and Infrastructure Security Agency (CISA) within 72 hours under CIRCIA.
Reference: Cybersecurity & Infrastructure Security Agency
Defense Federal Acquisition Regulation Supplement (DFARS)
Any South Carolina business contracting with the U.S. Department of Defense must comply with DFARS cybersecurity regulations, which are based on the NIST cybersecurity framework.
More South 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 South Carolina need to follow. Depending on your industry or the type of data you handle, additional federal, state, or international regulations may apply. For example, industries such as energy, defense, education, and public infrastructure often have specific requirements under organizations like the Federal Energy Regulatory Commission (FERC) and the Department of Homeland Security (DHS).
It’s essential for organizations to routinely assess their cybersecurity posture, conduct compliance audits, and engage legal or IT experts to stay ahead of regulatory changes. Ignoring state or federal cybersecurity laws can result in penalties, operational disruption, and loss of customer trust.
Conclusion
Staying compliant with South 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.
Read: North Carolina Cybersecurity Laws You Should Know
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.
