What Every North Carolina Small Business Owner Needs to Know About Data Breaches

October is National Cybersecurity Awareness Month - the perfect time for North Carolina small business owners to strengthen their digital defenses. This month, we're focusing on practical cybersecurity guidance that busy entrepreneurs can actually use. Whether you're just getting started with data protection or looking to improve your current security measures, these resources will help you protect your business and your customers' trust.

As a small business owner in North Carolina, you handle customer information every day - names, addresses, phone numbers, credit card details, and more. But what happens if that information gets stolen or accidentally exposed? The answer is more serious than you might think, and North Carolina law requires you to take specific steps to notify your customers and the state.

What Counts as a Data Breach?

A data breach happens when someone who shouldn't have access to your customer information gets it anyway. This could be:

• A hacker breaking into your computer system

• An employee accidentally emailing customer data to the wrong person

• Someone stealing a laptop or phone with customer information on it

• A filing cabinet with customer records getting broken into

The key thing to remember: if customer personal information gets into the wrong hands, it's likely a breach that requires notification.

What Is "Personal Information"?

North Carolina law focuses on information that could be used to steal someone's identity or access their accounts. This includes:

• Social Security numbers

• Driver's license numbers

• Credit card or bank account numbers

• Any combination of first name/initial and last name plus one of the above

Simple contact information like email addresses, phone numbers, or names by themselves usually don't trigger the notification requirements.

Simple Steps to Take Right Now 

• Know where your customer data is - Make a list of everywhere you store customer information (computers, phones, filing cabinets, cloud services)

• Have a plan - Before a breach happens, know who you'll call (IT support, lawyer, etc.) and have template notification letters ready

• Keep good records - Document what customer information you have and how you protect it

• Get cyber insurance - Many business insurance policies now offer cyber coverage that can help with breach response costs

• Train your team - Make sure employees know how to handle customer information safely

  
  

Create a Data Breach Response Plan

When a breach occurs, emotions run high and time is critical - having a written plan helps you respond quickly and correctly instead of scrambling to figure out what to do.

Your plan doesn't need to be complicated. Start with a simple one-page document that includes: who to call first (your IT person, lawyer, or insurance company), where your customer data is stored, template notification letters you can customize quickly, and a checklist of the seven required elements for customer notifications. Keep copies in multiple places and make sure key employees know where to find it. Update your plan at least once a year or whenever you change how you handle customer data.