State: Virginia
The breach that triggered legislation: rampant W-2 phishing e-mails that have plagued businesses
Why was a legislative fix necessary? These data breaches and scames cost many states millions of dollars as a result of payments made and investigations conducted on fraudulent tax returns.
The legislative fix:
- Notification to Attorney General & VA Department of Taxation
- When employers and payroll service providers experience a breach
- The breach must involve taxpayer identification numbers & withholding information