The NY SHIELD
Act Mandate.
The "Stop Hacks and Improve Electronic Data Security" Act fundamentally changed the data security landscape. If you hold the data of even one New York resident, you are legally obligated to deploy specific administrative, technical, and physical safeguards.
View Requirements
Redefining
"Private Data."
Before 2020, data breach laws narrowly defined private information. The SHIELD Act aggressively expanded this definition to match the modern digital economy.
Most companies believe they are not liable because they don't store Social Security numbers or core financial data. Under the SHIELD Act, simply storing an email address coupled with a password or a basic security question makes you legally liable.
If your website allows users to create accounts, you are collecting Private Information under New York law. Period.
Trigger Data Points
- ⊗ Account Credentials
A simple user email address in combination with a password or security question and answer.
- ⊗ Biometric Information
Data generated by electronic measurements of individual physical characteristics (fingerprints, voice prints, retina scans).
- ⊗ Unsecured Financials
Account numbers, credit, or debit card numbers—even if not accompanied by a security code, access code, or password, if circumstances exist wherein the number could be used to access the account.
The Extraterritorial
Scope.
The most dangerous misconception about the NY SHIELD Act is that it only applies to businesses physically located in New York State.
Jurisdictional Reality
The law applies to any person or business owning or licensing computerized data which includes private information of a resident of New York.
If you operate an e-commerce site from Texas, a SaaS platform from London, or a local service business in New Jersey, but you collect email credentials from a single user residing in New York, you are entirely subject to the SHIELD Act's enforcement actions.
Legal Precedent:
The New York Attorney General does not require physical nexus to prosecute digital negligence. They enforce based on the residence of the victim, not the location of the server or corporate headquarters.
The Three Pillars of
Reasonable Safeguards.
Administrative
- • Designate specific employees to coordinate the security program.
- • Identify reasonably foreseeable internal and external risks.
- • Assess the sufficiency of current safeguards.
- • Train and manage employees in security program practices.
- • Select capable service providers bound by contract.
Technical
- • Assess risks in network and software design.
- • Assess risks in information processing, transmission, and storage.
- • Detect, prevent, and respond to attacks or system failures.
- • Regularly test and monitor the effectiveness of key controls, systems, and procedures.
Physical
- • Assess risks of information storage and disposal.
- • Detect, prevent, and respond to intrusions.
- • Protect against unauthorized access to data limits during collection or disposal.
- • Dispose of private information within a reasonable amount of time.
The Price of
Negligence.
The NY Attorney General actively enforces these standards. These settlements highlight the exact failures that trigger massive civil penalties.
EyeMed Vision Care
MFA & Logging Failures
Penalized for failing to implement fundamental security measures such as multi-factor authentication for compromised email accounts, resulting in a week-long unauthorized phishing infiltration.
Wegmans Food Markets
Cloud Misconfiguration
Penalized after a cloud storage misconfiguration inadvertently exposed customer data. The AG emphasized the failure to maintain reasonable security measures when utilizing third-party cloud architectures.
Shein / Zoetop
Breach Obfuscation
Penalized for failing to adequately secure customer data AND misrepresenting the scope of the breach to the public. Failing to notify affected customers aggressively compounds the penalties under SHIELD.
Pathway Sentinel Review
- 01 Architecture Audit
We inspect your databases, CRM integrations, and CMS storage protocols to ensure password salt/hash compliance and data retention limits.
- 02 Third-Party Risk Assessment
We verify that your marketing tags, analytics pixels, and API endpoints are not inadvertently leaking PII to non-compliant vendors.
- 03 Documentation Generation
If audited by the AG, you must provide written proof of your security posture. We help generate the "Reasonable Safeguard" documentation required.
Stop Guessing.
Start Securing.
Navigating the technical requirements of the NY SHIELD Act requires more than a standard IT department; it requires cyber-compliance experts who understand how marketing data flows through the digital ecosystem.
"We didn't know" is explicitly not a valid legal defense under New York State regulations.
Is Your Business
Exposed?
Secure your digital infrastructure and verify your compliance. Get a comprehensive technical audit of your data handling practices.
Request A SHIELD Act AuditDisclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. It is essential to consult with a qualified legal professional to understand your specific obligations.