In many instances the law requires you to use encryption. Countries around the world have noted the importance of data protection by enacting legislation that requires businesses to protect the data they collect on consumers.
In addition to facing fines for failure to comply with privacy laws, companies must also contend with being sued by the consumer for failure to protect them from identity theft and other forms of fraud.
- Privacy Legislation: There are various privacy acts in place that require you protect customer data.
- Federal Privacy Legislation In the US
- Federal Privacy Legislation in Canada
- Sarbanes Oxely: If you run a publicly traded company, SOX requires you to protect non-public information from people within your organization as well as outside.
- VISA/MC/AMEX: The major credit card providers have come together to create security standards for businesses that collect credit card data.