Consumers utilizing financial institutions, businesses, retailers and major universities that have been victims of security breaches by criminals stealing personal information are being given new protections under a new state law sponsored by Assemblyman Tom Alfano, State Senator Chuck Fuschillo and Assemblyman Jim Brennan. It's a measure that consumer groups have hailed as a giant step in the right direction.

Under the new law, consumers will be armed with new protections and business and governmental entities will have to alert the public when security breaches occur under the new law. Alfano teamed on the proposal with Assemblyman Jim Brennan and State Senator Chuck Fuschillo after constituents who have been victims of identity theft approached the lawmakers. The new law entitled "The Information Security Breach and Notification Act," takes effect this December. The new law, according to Alfano will require all governmental agencies who hold personal information of consumers to notify the public of security breaches immediately.

"Simply stated this new law will help consumers protect themselves by giving them the information they need to protect themselves from identity theft and fraud," said Alfano. "When the new law goes into effect during the holiday season, consumers will be able to protect themselves. If personal information is stolen or compromised, the consumer will be immediately alerted so they can protect themselves. Before this law, a consumer wouldn't get the information they need to stop criminals from victimizing them."

Under the conditions of the new act, whenever a state entity or private business has its computer system hacked by criminals and information is obtained without authorization, all New York state residents who were compromised by the security breach must be notified in a timely fashion. The new law would swing into action if any private, personal information, such as name with Social Security number, driver's license, non-driver ID and account information were stolen.

"If a security breach occurs, the consumers affected must be informed through mail, electronic form, telephone," said Alfano noting, "alternate methods can be used as well such as statewide media notification in concert with mail and the like."

Identity theft occurs when information is illegally obtained and is utilized by a criminal to open credit card accounts, write bad checks, buy cars and commit other financial crimes under that person's identity.

According to the Identity Theft Resource Center, there are over 10 million identity theft victims in the United States per year and the total cost of identity theft is estimated at $50 billion. Additionally, approximately 85 percent of victims only found out about the crime due to an adverse situation, such as being denied credit, contact by a collection agency or receiving credit cards or bills for merchandize they never ordered.