Forty-five states now have security breach notification laws. Numerous federal laws and regulations require breach notifications and some, such as HIPAA and Gramm-Leach-Bliley, require the use of encryption technology to protect confidential information. Failing to comply with these mandates can result in anything from a serious financial disaster to business failure. For example, businesses with customers or clients in Florida are subject to the Florida security breach notification laws which impose fines of up to $500,000 for failure to properly report breaches of customer of client confidential information.  On top of this, add the adverse effects of having business plans and trade secrets compromised.